Denied Car Accident Claim? How to Pursue Legal Action

In an ideal situation following a car accident, your insurance claim would be accepted, and you would receive the compensation you deserve for your damages. Unfortunately, this is not always the case. However, just because your claim has been denied does not mean that all hope is lost. There are still avenues available for pursuing recovery for your injuries and losses. If your car accident claim is denied, contact an experienced personal injury lawyer to assist you.

Why Was My Auto Accident Claim Denied?

The most crucial aspect to consider after your claim is denied is the reason behind it. Knowing why the insurance company rejected your claim will help you determine whether you can challenge their decision. There are several common reasons for denied insurance claims, including:

  • Lack of coverage. Your insurance policy may not provide coverage for the specific type of claim you are making. For example, if your accident falls under collision coverage, but your policy only provides liability coverage, the claim may be denied.
  • Lapsed coverage. Late premium payments can result in a lapse in coverage, leading to claim denial.
  • Administrative errors. Sometimes, simple mistakes made by the insurance company, such as incorrectly entered codes or claims sent to the wrong insurer, can result in denial.
  • Policy limits. The insurance company may refuse to cover the full amount of damages claimed if they exceed the policy limits.
  • Exclusions under the policy. In certain cases, individuals, such as teenagers excluded from their parents’ policy, may not be covered by the insurance policy.
  • Failure to add a new car to the policy. If you did not add a new car to your policy within a specified timeframe, the claim for that vehicle may be denied.
  • Misidentification of the other party. If you mistakenly made an uninsured motorist accident claim when the other party actually had insurance, your claim may be denied.

While some reasons for denial are legitimate, others may be open to dispute. Carefully review the insurance company’s denial reasons and compare them with the documentation you provided. If the given reason does not align with the truth of your claim, you can explore options for disputing the decision.

Do I have legal options to challenge a denied car accident claim?

When your car accident claim is denied, you have three primary legal options for challenging the decision:

  1. Writing a letter to your insurance company. Your insurance company should provide instructions on how to appeal a claim denial, usually included in the denial notice on the back of your insurance card. In your letter, provide specific documentation that supports your dispute, explaining why your evidence contradicts their decision. Include relevant information such as accident photos, medical records, police reports, and any other evidence that strengthens your case. Insurance providers are required to make a decision about your appeal within strict deadlines, depending on the type of treatment involved.
  2. Filing a bad faith insurance claim. If you believe the insurance company is acting in bad faith, breaching the contract, or violating your state’s insurance code, you may consider filing a bad faith insurance claim. This legal action requires the assistance of a car accident lawyer who can help you determine whether the insurance company’s actions constitute bad faith.
  3. Filing a lawsuit against the responsible party. If your insurance claim denial is not successful, you may still have the option to file a lawsuit against the other party involved in the accident. Consult with your attorney to determine whether this is a viable course of action in your case. In many instances, a lawsuit does not need to go to trial, as your lawyer can negotiate on your behalf to secure a satisfactory settlement. However, if necessary, court proceedings may become the final step.

Note: Insurance companies are obligated to act in good faith when handling car accident claims. Although appealing a claim does not guarantee a reversal of the decision, the insurance company should be open to your dispute if you present compelling evidence. If they unreasonably delay or deny a claim, they may be in violation of state laws and acting in bad faith. Keep detailed notes of your conversations with the insurance company, including the names and direct numbers of representatives, as well as the dates and contents of the discussions.

Call The Jewkes Firm for a Denied Car Accident Claim

If your car accident insurance claim has been denied, remember that you still have options. The experienced car accident lawyers at The Jewkes Firm are here to guide you through the next steps. Contact us today at (770) 293-7590 or fill out the form on the right for a FREE consultation to discuss your case.