How to Appeal a Denied Auto Insurance Claim

In the aftermath of a car accident, life is already stressful. However, if your auto insurance company denies your claim, you may feel overwhelmed.

But here's the catch. While insurers usually have common reasons for denying an auto insurance claim, they do make mistakes from time to time. That's why it's critical to understand your options, especially if you believe they're wrong.

We'll go over everything you need to know about what to do if your car insurance claim is denied below. Let's get started!

Why Was Your Auto Claim Denied

Before you can challenge a denied claim, you must first understand why it was denied in the first place. And, depending on the specifics of your auto insurance claim, there may be more than one reason for this. There are numerous variables that can influence the outcome of your claim, ranging from police reports and eyewitness statements to the recreation of an accident.

If your auto insurance claim is denied, your insurer will send you a claim denial letter explaining why they decided not to pay your claim. Make sure to carefully read your denial letter, as it will outline not only the reasons for the denial, but also evidence to support the decision. The following are the most common reasons for a provider's refusal to pay your claim:

Lapsed Insurance Policy

If you did not have valid insurance at the time of the accident or claimable event, the insurance company will not be able to pay your claim. That's why it's critical to keep your policy current, even if you're traveling abroad or not driving as much as usual. To avoid having your insurance expire, consider paying the policy term in full or setting up auto-pay so you never miss a payment. Furthermore, depending on the state you live in, a lapse in coverage may result in fines. If your insurance has expired, you must either renew it with your current provider or find a new insurance company.

Policy exclusions

Car insurance is required to protect yourself on the road, but it does not always apply in all situations. Some policies, for example, may not cover an accident if it occurred while you were driving for business. Alternatively, if you declined comprehensive and collision coverage because your car is an older model, you may not be covered if you cause an accident. That is why it is critical to fully comprehend your policy. When you sign up for a plan, pay close attention to which coverages are available and which ones you'll need the most.

Not Enough Coverage

A car insurance company may deny your claim if you do not have enough coverage, in addition to not having the right coverage. You may be tempted to choose the lowest liability limits coverage to save money on your monthly premium, but if you are involved in an accident that causes multiple injuries to others or extensive property damage, your liability limits may be exhausted. Assume you have $30,000 in property damage liability coverage and are involved in an accident that results in $50,000 in damages. In this case, your insurer will pay up to $30,000, but they will deny the remaining $10,000, leaving you financially liable.

How to Fight a Denied Auto Claim

Even if your claim has a plethora of supporting documents, an insurance company may still deny it.However, there are some instances where a valid claim is denied. If you believe your insurer made a mistake, you have the right to appeal the decision. After all, even if it's as simple as a clerical error in your paperwork, insurers are human and can make mistakes. In this case, appealing the insurance company's decision may result in the decision being reversed or an offer for damages being made.

Here are some steps you can take to fight a claim denial for your auto insurance:

Gather evidence: Before contacting your insurance provider about the denial, make sure you have all of the evidence you need to file an appeal. This may include police reports, eyewitness information, photographs, medical reports, and other supporting evidence that can be used to prove that your claim is valid. Make duplicates of everything you give the insurance company so you can keep the originals.
Send an appeal letter: This is your opportunity to explain why you disagree with your insurance company's decision. Make sure to explain why you're sending each piece of evidence (such as police reports and eyewitness information) and how it proves your claim should be paid. Give as much information as you can, referencing policy information and the claims denial letter as needed. If you have any questions, you can contact your insurance company and they will walk you through the process.
Enlist the assistance of an attorney: If all other options have been exhausted, or if you simply prefer to hear from an expert, you may want to seek professional assistance in fighting your denied claim. This is especially important when pursuing a claim involving a serious injury. An attorney can assist you in determining why your claim was denied and in attempting to recover any damages associated with the car accident. If your claim was denied on unreasonable grounds, you can also sue your insurance company for bad faith and breach of contract. If you decide to sue, keep in mind that there is a time limit for filing lawsuits that varies by state.