Why do car insurance companies deny claims?

On Behalf of | Mar 28, 2023 | Firm News

Car accidents are stressful and costly. This is why having your car crash claim denied by your own insurance company can add insult to injury.

However, by understanding why car insurance companies usually deny car crash claims and how to challenge them effectively, you can increase your chances of getting the compensation you deserve.

If you caused it

Unless you have comprehensive insurance coverage, if you are at fault, your insurance company will not cover you.

As such, the big reason your insurance company or the other insurance company denies your claim is that they find that you are at fault.

Keep in mind that this does not necessarily mean that you caused the accident. In some states, if you were more than 50% responsible for the accident, you are not entitled to compensation, and in others, if you were at all responsible, you are not entitled to compensation.

This is why it can be so important to contact a lawyer immediately after a car accident before you speak with either insurance company.

Damage type

If the type of damage you incurred is not covered by your insurance company, they may deny it too. Though, this may also be a smoke screen as well. For example, if you have a liability-only policy, which only covers the damages you cause to others, and not your own vehicle or medical expenses, the insurance company may deny your claim for those damages.

Fighting back

If your car crash claim has been denied by your insurance company, you do not have to accept their decision as final. You have the right to appeal the denial and request a review of your claim. You should contact your insurance company and ask for a written explanation of why they denied your claim and what evidence they used to support their decision.

You should also gather any additional evidence that supports your claim, such as police reports, witness statements, medical records, photos, videos, receipts, etc. You should then write a letter to the insurance company explaining why you disagree with their denial and providing them with your evidence. You should also ask them to reconsider their decision and pay you what you deserve.

If the insurance company still refuses to pay your claim after reviewing your appeal letter and evidence, you may have to take legal action against them.