Why Would Your Car Accident Insurance Claim Be Denied?

Auto insurance coverage guarantees financial protection from car-related damages. However, having one doesn’t permit driving recklessly on the road. Because of this, insurance companies can deny your claim under certain conditions.

If an insurance company denies your claim, you’ll need the help of an experienced auto accident attorney. These professionals can help you with the crucial details of your insurance claim.

Here are the main reasons an insurance provider may deny your accident claim.

Why Would Your Car Accident Insurance Claim Be Denied

You Are the Driver at Fault for the Accident

One of the reasons why an insurance company may deny your claim is that you’re the driver at fault for the accident. Insurance companies will evaluate your claim before they cover any expenses, and they will reject it if they find that you were responsible for the accident.

However, your auto accident attorney can help you win that claim if there is only property damage, which is covered by your insurance. So file the claim with your insurance and get the damage fixed.

In cases where you suffered bodily injuries and disagree that you’re at fault, your only recourse is to file a personal injury lawsuit. In this case, it is best to consult a car accident lawyer to determine your case’s merits.

You Were Partially at Fault

Another reason is that you were partially at fault. For example, let’s say the other driver was found to carry 60% of the burden for causing the accident, which means 40% of the fault is on you. You can still file a claim, but your insurance company will only pay for 40% of the settlement.

Lapsed Policy

Another reason why an insurance company may deny your claim is due to a lapsed policy. You or the other driver may have forgotten to make payment. It’s crucial to stay on top of policy payments to have coverage during the accident.

Missed Timeline

Insurance companies have strict policies concerning claimant timelines. You usually have 30 days from the time of the accident to file your claim. All claims are generally denied after that prescriptive period. There are exemptions to this rule, such as if you were in the hospital recovering from injuries. However, you can’t rely on the insurance adjuster to make that exception.

Lying or Fraud

A sure way to deny an insurance claim is by lying to one’s insurance company or the other driver’s carrier. The insurance company will refuse the claim outright if fraud is involved.

Excluded Drivers

Some drivers are excluded from coverage in an insurance policy because of bad driving records and other similar reasons. For example, if you lent your car to an exclusive driver and the vehicle was involved in an accident, your insurance claim can get denied. However, if your car accident lawyer can prove that the other driver was at fault, you can still file a claim with the other insurance provider.

Deductible Allowance

Some policies have deductible allowances, usually a percentage of the vehicle’s fair market value. The insurance company will deny your claim if the damages do not exceed the deductible allowance. This allowance protects insurance providers from filing claims for minor damages.

Unlawful Activities

Your claim can also be denied if you were driving under the influence, breaking the law, or were involved in illegal activities at the time of the accident. Again, this isn’t a typical situation, but if a driver broke the law, insurance companies wouldn’t cover any damages caused by that individual.

Policy Exclusions

Claims can also be rejected if your policy doesn’t cover certain conditions:

  • Intentional damage to property
  • Catastrophic events and natural calamities
  • Using the vehicle outside its specified use class (e.g., using a private car for commercial purposes).

Insufficient Coverage

Your policy will only cover a certain amount of damage. However, there are cases where the driver’s insurance policy can only cover so much, and an overage will still need to be paid. The insurance company won’t deny the claim if it is valid. However, they will only pay for the contracted amount stated in the policy, and the driver at fault will have to find other means to pay for the damages.

Work with a Seasoned Auto Accident Attorney

Even though your insurer has declined your claim, an experienced car accident attorney can help you determine its merits. This would allow you to resubmit your claim, and you may convince the insurance company to approve it.

Call the Law Offices of David Kohm at our convenient locations today and get a free consultation.

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