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What To Do if Your Car Insurance Claim Is Denied After an Accident

If your car accident claim is denied, it’s important to review discrepancies between the denial and your policy coverage, collect evidence, and contact a car accident lawyer. 

When you’re involved in a car accident, you expect your car insurance company to handle your claim fairly and promptly, but this isn’t always the case. 

This article explains why your car accident insurance claim may be denied, the steps to take if your car insurance claim is denied, and how The Sorenson Law Firm can help you navigate the process. 

If you’re facing an accident insurance claim denial, read on to learn your rights and options.

Why Car Insurance Companies Deny Car Accident Claims

After a car accident, you may file a claim expecting coverage for your damages. Unfortunately, insurance companies may deny your claim for various reasons. 

Insurance companies deny car accident claims to protect their financial interests. If they believe they can deny your claim based on policy language, insufficient evidence, or other grounds, they often will.

Insurance companies have an internal review process to evaluate every car insurance claim. If the adjuster determines that the policy does not cover your situation or that you were at fault for the accident, they may deny your claim. 

Insurance companies are required to explain the reasons for the denial, but their explanations can sometimes be confusing or incomplete.

Common Reasons Your Car Insurance Claim Could Be Denied

Several reasons may lead an insurance company to deny your claim. These include:

• Lapsed or inactive insurance policy: If your insurance coverage was not active at the time of the accident, your claim may be denied.
• Policy exclusions: Certain types of accidents or damages may not be covered under your auto insurance policy.
• Fault disputes: If the insurance company believes you were at fault for the accident, they may deny the claim.
• Insufficient evidence: Lack of documentation, such as photos or police reports, may lead to a denied car insurance claim.
• Late filing: Failing to file a claim promptly can result in denial.

If your accident insurance claim is denied, it’s crucial to review your insurance policy and understand why your claim was denied.

How To Understand Why Your Claim Was Denied

When your insurance claim is denied, you should receive a denial letter explaining the reasons. This letter is an essential document. The denial letter should clearly state:

• The specific policy provisions used to deny the claim.
• The facts of the accident were considered in their decision.
• Any missing documentation or information.

Carefully review your denial letter to ensure the facts are correct. Sometimes, insurance companies deny claims due to simple errors or misunderstandings. For example, the insurance company may claim that the driver was at fault for the accident when that may not be the case.

Steps To Take if Your Car Accident Insurance Claim Is Denied

If your car insurance claim is denied, there are important steps to take:

1. Review your insurance policy: Read through your auto insurance policy to see what is covered and excluded.
2. Compare the denial letter to your policy: Look for discrepancies between the denial and your policy coverage.
3. Gather additional evidence: Collect police reports, medical records, witness statements, and photographs of the accident.
4. Contact your insurance adjuster: Ask for clarification, and see if any missing information can be provided.
5. Document everything: Keep a written record of all communications with the insurance company.
6. Consult with a car accident lawyer: An experienced car accident attorney can help you determine if the denial was proper.

Following these steps can strengthen your case and improve your chances if you need to appeal the denied claim.

What a Car Accident Claim Denial Letter Is and Why It Matters

A denial letter is a formal notice from your insurance company explaining why your insurance claim is denied. The denial letter is crucial because:

• It outlines the insurer’s reasons for denying the claim.
• It specifies which policy provisions apply.
• It provides a foundation for your appeal or lawsuit.

If you believe the insurance company denied your claim in error, this letter will be essential in building your case. The denial letter also helps your attorney review your claim and create a strategy to challenge the insurance company’s decision.

How Insurance Companies Evaluate Car Accident Injury Claims

Insurance companies evaluate car accident injury claims using specific procedures. When you file a claim, the insurance adjuster reviews the details of the accident, including:

• The police report.
• Photos of the accident scene.
• Medical records of injuries sustained in the accident.
• Witness statements.
• Damage estimates for the vehicle.

The insurance company may deny claims if they believe there is not enough evidence to support your claim. If the insurance company believes you contributed to the accident or that damages were pre-existing, they may deny your claim.

When Insurance Companies Deny Claim for Car Accident Unfairly

Sometimes, insurance companies act in bad faith when they deny claims. Bad faith insurance occurs when the insurer unreasonably refuses to pay a valid claim or fails to investigate properly. Signs of bad faith insurance include:

• Delaying the investigation.
• Refusing to provide a clear reason for denial.
• Misrepresenting policy language.
• Demanding unnecessary documentation.
• Offering unreasonably low settlements.

If you suspect that your insurance company is acting in bad faith, contact an experienced car accident claim lawyer. The Sorenson Law Firm can help you file bad faith insurance claims and hold the insurance company accountable.

How To Appeal a Denied Car Insurance Claim

If your insurance claim has been denied, you may appeal the denied claim by following these steps:

1. Review your claim: Carefully examine the denial letter and your policy.
2. Gather evidence to support your claim: Collect all relevant documentation that strengthens your position.
3. Write an appeal letter: Clearly explain why you believe the claim was wrongly denied, citing specific policy language and evidence.
4. Submit the appeal to your insurance company’s internal review process: Insurance companies have an internal appeals process that must be exhausted before other legal action.
5. Consult an accident attorney: An attorney can help draft your appeal and negotiate with the insurance company.

You may also file a complaint with your state’s insurance department if you believe the insurance company’s decision was improper.

When To Hire a Car Accident Lawyer

Hiring a car accident lawyer may be necessary if:

• The insurance company denied your claim without proper justification.
• You are struggling to understand why your claim was denied.
• You suspect bad faith insurance practices.
• Your damages are significant, and the insurance company refuses to pay fairly.
• You need help negotiating with the insurance adjuster.

An experienced car accident attorney knows how to deal with insurance companies and protect your rights. The Sorenson Law Firm has experience representing accident victims against insurance companies that deny claims unfairly.

Key Takeaways for Accident Victims Facing Insurance Claim Denial

• Insurance companies may deny car accident claims for many reasons, including policy exclusions, insufficient evidence, and fault disputes.
• Bad faith insurance claims may involve delays, misrepresentations, or refusal to pay a valid claim.
• Review your insurance policy and the denial letter to understand why your claim was denied.
• Gather strong evidence to support your claim, including police reports, medical records, and photos.
• Appeal a claim denial through your insurance company’s internal process.
• Contact a car accident lawyer if your claim was denied or if you suspect bad faith insurance practices.

If your car accident claim is denied, do not face the insurance company alone. Contact The Sorenson Law Firm for help. Call us at 480-839-9500 or visit us at 950 W Elliot Rd Suite 226, Tempe, AZ 85284.