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What to Do If Your Car Insurance Claim Gets Denied

Ever wonder what you should do if your car insurance claim gets denied? Read on to find out what you should do next!

For many people, buying car insurance can be seen as a necessity and not a luxury. More than just being a requirement in some states, it can also provide you with peace of mind, especially from a financial standpoint. 

Filing a claim, on the other hand, is another story. It can be a nightmare if you do not know the requirements. There is also a risk of denial. So, what should you do if your claim is denied? Read on and find out how you can potentially turn the tide. 

Things To Do After a Car Insurance Claim Denial 

Car insurance, just like other types of insurance, can be a complex thing if you do not read the fine print. From the moment you shop for car insurance, you consider several factors, including price and coverage. You’ve probably asked a lot of questions—what type of insurance should you get, how long does it take to get car insurance, or what if your claim gets denied? 

Having car insurance is not a guarantee that you will receive financial or legal assistance when necessary. Insurers can deny your claims, which can be a nightmare. Below, we list some of the best things to do when that happens. 

1. Understand the Reason for Denial 

The first thing to do is to know why the claim was denied in the first place. If the insurer did not explicitly mention the reason, do not hesitate to ask them. It can be one of the following reasons: 

Policy Limits 

Insurance policies have expressed limits, which state the maximum amount they can cover in case of accidents. When you file a claim that is greater than the limit, it may not be necessarily denied. Instead, you will have to pay the excess.

Policy Restrictions 

Did you take the time to read the policy? You might have missed important details, such as the restrictions. For instance, the policy might have a set time limit, which is the duration when you should file a claim after an accident. If you do it beyond that, you risk a denial. It would be best to report a car accident immediately to your insurer. 

Policy Lapses 

A denial of a car insurance claim can also happen upon the expiration of your policy. If your policy has lapsed, make sure to renew it immediately or you risk getting fined. The renewal process should be easier, especially if you are doing it with the same company that already has your records. 

Breaking the Law 

Another potential reason for the denial of your car insurance claim is when it is a result of an illegal act. For instance, if you are driving under the influence, then you might not be eligible for insurance coverage. The same thing can be true when you are driving without a license or not following traffic regulations. 

Fraud 

This is something serious that you would not want to get yourself into. If you are found guilty of insurance fraud, the consequences can be heavy. Once the insurer proves that you are trying to deceive them, they might not just deny your claim and void your policy, but they can even forward the case to law authorities. Many insurers have strict protocols to prevent cases of fraud, which can save them money by not paying for illegitimate claims. 

2. Provide Additional Evidence 

During the initial process of filing a car insurance claim, you might have already provided the necessary evidence. Nonetheless, it might be insufficient, which could be one reason for denial. Take the time to gather more documents to support your claim, including testimonies from eyewitnesses, medical bills, and anything else you did not present before. Also, verify the documents you earlier submitted, ensuring their legitimacy. 

3. Hire a Third-Party 

If things didn’t work out between you and the insurer, it might be time to bring in a third party. This mediation can help settle the dispute. Among others, you might want to work with a lawyer who specializes in your case. An independent claims adjuster can also extend a helping hand. Meanwhile, you might also find yourself working with the insurance commissioner in your state. 

Now You Know What to Do if Your Car Insurance Claim Gets Denied

Denial of a car insurance claim can be a headache, especially if you are clueless about why such happens. The first thing to do is to investigate the reason behind the denial. If the insurer did not explicitly state it, ask them.

You might have built a weak case, so you can strengthen it by providing additional evidence to support what you have earlier given them. If all else fails, you might need to work with a third-party mediator, including a lawyer or claims adjuster.