Reasons Why Car Insurance Claims Are Often Denied and How to Avoid It
Posted on behalf of Phillips Law Group on Jun 13, 2019 in Auto Accidents
After a car accident, the usual next step is to file a claim with the at-fault party’s insurance company. Compensation from an insurance claim is necessary for medical bills, lost wages, and pain and suffering, as well as other damages associated with your accident and resulting injuries.
Unfortunately, many car insurance claims are denied and the reasons behind the denial vary on a case by case basis. In some situations, you may be able to avoid an initial claim denial when you take certain appropriate steps as you file your claim.
Our Phoenix car accident attorneys share the reasons why car insurance companies often deny claims and how you can avoid these pitfalls. Request a free, no-obligation legal consultation to get started.
Accident Was Avoidable or Not Reported on Time
If the cause of the car accident was avoidable but you failed to take action to prevent it, or your actions contributed to the accident’s occurrence, your insurance claim may be denied. The insurer may believe your actions would make the insurance policy’s coverage invalid, such as drunk driving.
Each insurance policy has rules regarding when a car accident must be reported. If you fail to report the accident within this specific timeframe, your claim will be denied. It is always best to report any accident as soon as possible.
Delay in Medical Treatment
Injuries that result from a car accident need medical attention right away. Not only is this important for treatment and healing of the injury, but for your insurance claim. When you seek medical care immediately following an accident, your medical records provide proof that you sought treatment and help establish the accident as the cause of the injury.
If you fail to get medical treatment right after your accident, the insurance company may deny your claim altogether. The insurer may say that your injuries:
- Did not result from the accident
- Are due to a preexisting condition
- Are not as severe as you claim
- Simply do not exist
Insufficient Insurance Coverage
Car accidents that cause serious injuries typically result in costly damages. All the damages associated with the accident may exceed the at-fault driver’s car insurance policy. The insurer may deny your claim for reasons such as:
- Damages exceed the policy’s coverage limits
- The coverage limits have already been exhausted
- The policy does not include the right type of coverage
Driver Excluded from the Policy
If the driver at fault for the accident is not on the car insurance policy, your claim will be denied. In the event that the insurance provider excludes the at-fault driver from a policy due to his or her poor driving record, your claim will be also denied.
Violating State Law or Driving Negligently
If you were breaking the law or driving negligently when the car accident occurred, the insurance company is likely to deny your claim. These actions are typically violations of your insurance policy as well as the law, which means the insurance company has a legitimate reason for the denial.
Your claim may be denied if you were:
- Driving under the influence of drugs or alcohol
- Driving without a valid driver’s license
- Driving without valid car insurance
- Involved in an accident that the insurer believes was avoidable
How to Avoid a Claims Dispute
Avoid a claims dispute by gathering as much information as possible after the car accident. This includes exchanging information with any driver involved, such as contact details, insurance cards, license plate numbers, and car registrations. When you provide more organized and clear supporting information to the claim adjuster, he or she is typically able to complete the process faster by avoiding administrative tasks and other time-consuming steps.
Get Help with Your Claim Today
If your car accident insurance claim was denied, you should seek legal representation. Our team at Phillips Law Group can help assess your damages to pursue maximum compensation. We can also negotiate with insurance companies on your behalf to get you the fair compensation you deserve.
Contact us now for a free, no obligation legal consultation. We charge no upfront fees and payment is only due if we recover compensation for you.