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What to Do If Your Car Accident Claim Is Denied

Posted on September 29, 2020 in

Car accidents can be expensive. From medical bills to lost wages and vehicle repairs, you can easily face thousands of dollars simply recovering from the collision — but filing an insurance claim can help you pay for these costs.

Unfortunately, an insurance company can deny your car accident claim for a number of reasons, from alleging you were at-fault to questioning the credibility of your injuries. If an insurance company denies your claim, you can fight the decision to seek justice.

Why Do Insurance Companies Deny Claims?

There are many reasons why an insurance company may deny a claim.

  • The policy is no longer valid or doesn’t cover the damages you request.
  • Your damages exceed the policy limits.
  • You filed your claim too late.
  • The company believes you are responsible for the accident.
  • Liability is unclear in your crash.
  • The claim includes false information.
  • You previously made a statement where you admitted fault.

Insurance companies must carry out the terms of the policy, but not all of them do. If the company denies a legitimate claim, offers an obviously insufficient settlement, or otherwise misrepresents the language of your policy, you may hold the company accountable for bad faith practices.

Speak to an Attorney About Your Insurance Claim Denial

One of the most important steps you can take to protect yourself from unfair insurance denials is to hire a Prescott Valley car accident lawyer to represent your needs. Not only can your lawyer help you through the appeal or lawsuit processes, he or she can advocate for your best interests during the initial claim as well.

Your lawyer will have experience working with insurance agents and Arizona car accident claims, and will understand how these companies come to a decision. He or she can identify any bad faith practices, and help you take action to seek maximum compensation. Your lawyer will also have the negotiation and trial experience necessary to counter insurance company claims and escalate your case to the courtroom if necessary.

Your Options After an Insurance Denial

You have two main options after an insurance denial: you can file an appeal, or you can escalate your claim to a personal injury lawsuit. The pathway that is best for you depends on the details of your case, so consult with an attorney before making a decision about what to do next.

During the appeal process, your lawyer will ask the company to reevaluate your claim and provide an adequate settlement based on the facts of your case. If he or she suspects bad faith practices, your attorney can send a letter to the insurance company detailing the bad faith and asking for a reevaluation. If the company doesn’t provide an adequate response, you can file a bad faith claim against them.

If the company denied your claim for a specific reason, such as a higher amount of damages than the policy allows or bad faith practices, you can escalate your claim to a civil lawsuit. During this process, your attorney will gather evidence to prove the other driver’s liability, the applicable bad faith practices, and the extent of your damages. Some cases settle out of court, and during trial, the court will decide whether you deserve a settlement.

Remember, you deserve compensation for your injuries, and if an insurance company takes this opportunity away from you, you can fight this decision. If you haven’t hired an Arizona car accident lawyer already, contact one as soon as possible.