Why Your Car Insurance Claim Was Denied

When you’re involved in a car accident, it is natural to expect that your insurance company or the at-fault party’s insurer will cover the costs of your damages. However, in some cases, car accident claims are denied, leaving you with additional financial burdens and frustrations. Here are some of the common reasons why car accident claims are denied. 

Insurance Policy Exclusions

Policy exclusions are among the most frequent reasons for denied car accident claims. Every insurance policy has its own set of terms and conditions that specify the type of coverage offered. If the damage or injury you suffered is not covered under the policy, your claim will be denied. 

Disputed Liability

Insurance companies will investigate the accident to determine who was at fault. If the at-fault driver’s insurance company disputes liability or believes their policyholder was not entirely responsible for the accident, they may deny your claim. Therefore, it is crucial to provide evidence to support your version of events and have a clear understanding of your state’s laws regarding fault and liability.

Policy Limits

When the damages or injuries sustained in the accident exceed the policy limit, the claim may be denied. For example, suppose the at-fault driver’s policy limit for bodily injury coverage is $50,000, but the total damages and injuries from the accident amount to $100,000. In that case, the insurance company will only pay up to $50,000. This means that the remaining $50,000 will have to be paid by the at-fault driver out of pocket or through other means.

Lack of Evidence

Your car accident claim must be supported by sufficient evidence, including photos, videos, witness statements, and police reports. If you do not have enough evidence to prove your case, your claim may be denied. 

Late Reporting

Another common reason car accident claims are denied is late reporting. Insurance policies have a deadline for reporting collisions. Therefore, it is critical to notify insurers of any car accident as soon as possible to avoid a denial.

Fraud

If an insurance company suspects you are committing fraud, your claim will be denied, and you could face criminal charges. Never exaggerate the extent of the damage or injury to receive more compensation than you deserve.

What to Do if Your Car Insurance Claim Is Denied

It can be frustrating and overwhelming if your car insurance claim is denied. However, there are still options available to you. First, review the letter or document that explains why your claim was denied. This will give you a better understanding of what went wrong and what steps you can take to appeal the decision. Insurance companies have an appeals process in place, which typically involves submitting additional evidence or documentation to support your claim. 

Seriously consider consulting a Philadelphia Car Accident Lawyer Attorney if you have not already. The appeals process can be complicated, and they can handle it for you and provide legal guidance. Mediation or arbitration may be recommended for help settling, or you and your attorney may choose to file a lawsuit if necessary to recover compensation.