Denied Car Insurance Claim – Now What?!

Dealing with a car accident can be headache enough, but what do you do if your car insurance claim has been denied? First, you should understand that there may be valid reasons why your insurance company has denied your claim. However, sometimes the insurance company has made an error or even acted in bad faith, and you can appeal the denial. 

Reasons Why Your Claim Might Have Been Denied

If your insurance company has denied your claim, you should expect to receive a formal letter outlining the reasons why. 

Here are some common examples: 

1. Lapsed policy. If you got behind on payments, your policy might have lapsed. (For this reason, we recommend keeping your premiums on auto pay.)
2. Policy limits. Sometimes, the damages you’ve incurred exceed the limits of your policy. 
3. Uncovered vehicle or person. Your insurance company may claim your policy does not cover the vehicle you were in or the person who was driving or injured. 
4. Policy exclusions. Perhaps you were hit by an uninsured motorist, but you don’t have uninsured motorist coverage. Or you caused the accident, but you only have liability. Unfortunately, carrying only the basic insurance in Washington won’t protect you from every possible collision scenario. 
5. Breaking the law. Your insurance company can deny your claim if you were driving in a completely reckless or illegal manner, for instance, driving under the influence. 

There are other situations where the insurance company might choose to not honor your claim. But what do you do if you feel they’ve made an error? Or worse, being unreasonable?

Disputing a Denied Insurance Claim 

There are times when an insurance company denies a valid claim. So, don’t throw in the towel just because you’ve received a letter. If you believe that your insurance company has made a mistake, you should appeal the denial. 

Here are some steps to take:

1. Gather evidence to prove your side of the story. Examples of evidence could include photos, video footage, witness statements, police reports, and medical records.
2. Look up the appeal process. Each insurance company may differ in their process, so take the time to learn where to send an appeal and any deadlines. Typically, you will appeal by sending in a letter.
3. Don’t hesitate to involve an attorney! If you’re feeling a bit over your head – and particularly if you are facing serious injuries – consider reaching out to a car accident attorney. They can do steps one and two on your behalf! Remember, an experienced attorney knows the “ins and outs” of how insurance companies work and the surrounding laws. As a result, they will know how to craft an effective appeal letter.

Most important, you don’t want to delay. There are deadlines to filing claims and appealing them. If you miss a deadline, you could be out of luck.

Free Consultation with Tacoma Car Accident Lawyer 

Ladenburg McKasy Durkin is now Ladenburg Law Injury Attorneys. We always offer free case evaluations. This means you can reach out to us to see if we can help at no cost. Please visit our contact us page to get started.