What should I do if my car insurance claim is denied?

Going through the aftermath of a car accident can be challenging. First, you must deal with getting healthy if you are injured and then having your car fixed. Often, the one bright spot is that you have insurance coverage to help with the bills.

You followed the instructions on how to file a car insurance claim, and now you’re waiting. Getting a letter from the car insurance company denying your claim can be brutal, but you can appeal your denial and have the insurance company re-evaluate its decision.

How To Handle A Denied Car Insurance Claim

When determining what you should do if your car insurance claim is denied, you’ll want to remember that it’s not over. You can file an appeal letter with supporting documentation on why your claim should be approved.

Reasons Behind Denied Car Insurance Claims

There are several reasons why a car insurance claim may be denied.

The denial letter will state why, such as your policy has lapsed due to non-payment at the time of the accident, the at-fault driver’s insurance denied the claim, the other driver involved was uninsured, or even your coverage was excluded beyond the car insurance requirements.

In addition, there may be some incorrect information in a police report or witness statement that resulted in the denial. Your insurance company could even claim there was a misrepresentation of facts in that you acted in bad faith, which resulted in the denied claim. (For more information, read our “Do I need a police report to file a car insurance claim?“).

Determining the reason behind the denial of insurance claim is vital.

Steps to Take After A Denied Car Insurance Claim

First, you’ll want to gather evidence regarding your insurance claim and denial. For instance, police reports, photographs, medical reports, eyewitness statements, and other evidence that helps support your claim.

Knowing the types of car insurance coverage and your policy specifics can also be helpful. Then, you’ll want to write a letter of appeal to the insurance company. If you aren’t entirely sure of your ability to write an appeal letter, you may want to seek out professional guidance.

Getting Assistance With A Car Insurance Claims Appeal

Getting assistance when appealing your denied auto insurance claim is not technically necessary.

However, there are some circumstances where it may be a good idea to speak with a lawyer familiar with denied car insurance claims. Some offer a no-cost initial consultation to help you determine whether their help will be beneficial without adding another bill.

Case Studies: Dealing With Denied Car Insurance Claims

Case Study 1: Jennifer’s Successful Appeal

Jennifer filed a car insurance claim after her vehicle was damaged in an accident. However, her claim was initially denied by the insurance company due to an alleged misrepresentation of facts. Determined to prove her case, Jennifer gathered all the necessary evidence, including the police report, photographs, and witness statements.

She then wrote a detailed appeal letter to the insurance company, presenting the evidence and explaining why her claim should be approved. After reviewing her appeal, the insurance company re-evaluated its decision and ultimately approved Jennifer’s claim.

Case Study 2: Michael’s Lapsed Insurance Issue

Michael was involved in a car accident, and he promptly filed a claim with his insurance company. However, his claim was denied because his policy had lapsed due to non-payment at the time of the accident. Although it seemed like a dead end, Michael decided to seek legal advice. He consulted with an attorney who specialized in denied car insurance claims.

The attorney helped Michael gather additional evidence and build a strong case. With the assistance of the attorney, Michael appealed the denial and was able to convince the insurance company to reconsider its decision, leading to the approval of his claim.

Case Study 3: Sarah’s Excluded Coverage

Sarah’s car was severely damaged in a hailstorm, and she filed a claim with her insurance company for the repairs. However, her claim was denied because the specific type of damage caused by hail was excluded from her coverage. Undeterred, Sarah researched her policy and discovered that she had opted for additional coverage for comprehensive damages, which included hail damage.

She gathered the necessary documentation and submitted an appeal, highlighting the inclusion of comprehensive coverage in her policy. The insurance company reviewed her appeal and realized the oversight in its initial denial. As a result, Sarah’s claim was approved, and she received the necessary funds for the repairs.

Understanding What Actions to Take When Car Insurance Claims Are Denied

One of the most important actions to take when your auto insurance claim has been denied is not to give up. Insurance companies are full of people and red tape where mistakes can happen even with the best insurance companies.

It may be as simple as sending proof of your claim and an appeal letter to get it approved. In some cases, it is beneficial to get professional legal advice to change your denied claim status.