A lot of times people ask us if they have to take what an insurance company is going to offer in a case, and the answer is simply no.Â
The chances of an insurance company offering the maximum settlement on a car insurance areaim is next to zero. The chance at a fair settlement is basically nonexistent when the insurance company outright denies your claim.
Fortunately, a denied claim does not mean you have to sit back and accept that decision. You have the right to dispute the company’s decision. Let’s explore potential reasons for claim denial and your options if you choose to dispute a wrongly denied claim.
Reasons your auto insurance company may have denied your claim:
- You provided false or inaccurate information. Making purposely false statements is grounds for denial. Small mistakes, such as incorrectly entering your date of birth, can be fixed. Lying about when, where, how and what led to the accident can trigger a denial.
- You filed a fraudulent claim. An example of a fraudulent claim can be saying an accident happened when no accident occurred.
- You failed to submit proof of losses. Proof of loss documents support your claim and may include car repair bills, medical bills, and police reports.
- You made illegal modifications to your vehicle. Specifically, modifications that create the inability to legally use the car on the street. For example, modifications that cause poor handling might result in a claim denial. Negligently operating the vehicle for events like drag racing could also lead to your car insurance company denying your claim.
Your car insurance claim was denied. Now what?
If you are denied, there are still ways to get your claim approved. Here’s what you should do when disputing a denied car insurance claim:
- Write an appeal letter. Explain why you feel the denial was inappropriate. Provide detailed medical and police reports along with information included in your policy that covers your situation.
- Gather evidence. Your goal? Gather all available information to support your claim. Get eyewitness testimonies, photos, medical reports, and police reports.
- Hire an attorney. It is in your best interest to hire an attorney soon after the accident. This will significantly improve your chances of getting the claim approved. An attorney will provide legal advice, draft your appeal letter, and gather evidence and documents needed to win your claim. Michael Timberlake further explains what a personal injury attorney can do to help win your claim in the video below.Â
Good faith vs. Bad faith
Wouldn’t it be great if we simply paid insurance premiums, and after an accident or injury, the insurance company settled the claim fairly and promptly? That is called good faith.
Unfortunately, not everyone gets that lucky. Sometimes, insurance companies act in bad faith, and filing a lawsuit is necessary for you to be fairly compensated.
What is a bad faith lawsuit?
Bad faith lawsuits stem from unfair or dishonest practices. These practices can include the company refusing to provide a reasonable settlement, not paying on a legitimate claim, refusing to investigate and process claims in a timely manner, or changing the language of what is covered in the policy.
Ultimately, it is important to understand what your insurance policy covers before signing on the dotted line. However, after an accident, try to remember that every bit of information matters and that time is of the essence. Insurance companies consider their financial bottom line the top priority, so protect yourself.
If your feel your car insurance claim has been denied unfairly, please contact the experienced attorneys at Timberlake & League. We can help you with the process of disputing a denied car insurance claim.
