What Should I Do if My Insurance Claim is Denied After a Car Accident?

car accident insurance claim

It’s a well-known fact that most in the United States are just one emergency away from severe financial straits – and unfortunately, that emergency might come in the form of a car accident. If you’re suffering through this yourself, you know how terrible it is and you know how even more devastating it can be when your insurance claim is denied.  Panic about what’s going to happen and where you’re going to find the money might be rattling around your brain but try to stay calm. According to Ellis Law, a personal injury law firm in Los Angeles, there are steps you can take to successfully appeal your insurance’s decision and receive the resources you need to move forward.

Reason for Denial

Before moving too far beyond the decision to appeal, it’s important you know why you were denied in the first place. Oftentimes, it could be something as simple as a clerical issue or a lack of documentation, but it could be something a little more complicated. Here are just a few of the other causes for denial that you might face:

  • Lack of payment – Like any other service, you’ve got to pay for your coverage to receive your coverage. If you’ve accidentally lapsed on your payments, your payment was denied due to a lack of funds, or there was an error when processing it, your insurance won’t be there to cover you should you get into an accident. That’s why you should always triple check that your payments are up to date. 
  • No coverage – Have you bought a new car recently? If so, your denial might be because you forgot to add your car to your insurance policy!
  • “Excess” claims – Sometimes people have a string of bad luck and are forced to file for multiple insurance claims. Policies always have caps though and if you reach that cap, you’re out of luck.
  • Lack of comprehensive coverage – It can be so easy to think you won’t need full coverage, but you’ll think differently if you have an accident. Should you face a denied claim, make sure you didn’t just have liability. If so, your damages will not be covered. 

Keep an eye out for any of these issues and always carefully look over your denial letter. This will give you a clear starting point for your appeal.

Steps to Follow After Denial

After you discover that your claim has been denied, clear a few minutes from your schedule and write a letter to your insurance company. In order for them to reevaluate your case, you must make an official request for their reconsideration. Each insurance company and policy will have certain guidelines for doing this, so find those out and ensure you follow them to the letter.

Insurance might be a great thing, but they will try to avoid paying. Don’t give them an easy reason to do this. After you send your letter, your insurance company will review it and likely open an investigation into your case.

Should you find yourself being denied again or feeling like their denial was unnecessary, a crucial step for you might involve reaching out to a good lawyer. They can help you navigate the appeal process easier and can file a bad faith insurance claim on your behalf if they feel it is warranted. This will not only make your life a little bit easier during the process, but a good lawyer’s assistance can also increase your odds of reversing your denial.

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