It is through claims denial that auto insurance companies gets to make money. There are common reasons why auto insurance companies would want to deny your claim and this article also talks about what to do when car insurance denies claim. If you have been involved in an accident, especially one that isn’t your fault you deserve to receive some compensation and this is why you should never allow an insurance company to take advantage of you. It is the duty of auto insurance to provide you with help after an accident.
What To Do When Car Insurance Denies Claim
Car insurance companies are meant to provide with medical bills and compensation for the damages that your car must have suffered during the accident. Many at times, insurance companies tend to deny people their claims because of minor reasons and trust me, you always have the option of hiring a lawyer that would help you get what you actually deserve. There are ways that you can also adopt when it comes to battling a claim denial by an insurance company but here are some reasons insurance companies deny claims;
- You are not the driver that is listed on the policy
- Your insurance policy carries the wrong type of coverage.
- The car you had the accident with is new and the insurance company have no idea of it
- Inability on your path to pay up your insurance bills on time
- The amount of your claim has gone higher than your policy limits
- Your insurance coverage carries an uninsured motorist but the driver at fault has insurance
If the claim you filed for gets denied by an insurance company, going ahead to have a conversation with the insurance company regarding why your claim was denied and also giving them reasons why you claim is legitimate and should stand is also the right step for you to take. You also have the option of hiring an attorney like we suggested earlier but one fact we also want you to have in mind is that all of these should be done only if your claim is valid.
Take for example, if you failed to pay up your premium as at when it is due then there is no level of conversation that would make any insurance company listen to you and approve or accept your claim. Since you have failed in meeting up with your premium payments, they also do not have any reason to approve or accept the claim you have filed for. However, there are cases where you can bring up arguments or points that might be able to help with your case.
There are certain key steps that you must follow if you truly want your claim to be approved and the first thing that you actually need to do is to make sure that all relevant records are gathered. After gathering of records, the next step to help with your case is if you can prove liability. What this simply means is if you can be able to prove the driver that is at fault and let’s say the other driver is at fault. Do you have evidence to back it up?
The third step that you also need to follow if you want any auto insurance company to validate your claim is if you can be able to address why your claim got denied. You should be able to politely explain to the insurance company why their action to deny your claim is wrong and you should also give them valid reasons why you think or feel your claim should be validated or approved.
Well, if after taking all of these three steps and the insurance company still goes ahead to deny your claim, it doesn’t mean you should back down or give up as there are still certain steps that you can follow to help you achieve what you truly want. The first step that you should take after trying the first three mentioned steps is for you to appeal your case with the state insurance commissioner. Then after doing that, proceed to filing a bad faith claim against the insurance company and finally, file a suit against the driver at fault.
This suit can be filed either against the driver personally or against his insurance company. Remember that before going ahead to do any of this, make sure that all of your claims are valid and that you are being honest because not being truthful or honest might turn around and cause you to lose the case.