A surprisingly large number of car accident claims get denied. Let’s look at a few of the reasons why they are denied. Then we’ll discuss what to do when your auto accident claim is denied based on the situation.
Haven’t Paid Your Premiums
If you haven’t paid your car insurance premiums, you haven’t paid for your auto insurance coverage. Your claim will be denied. The only possible exception is if you’re only somewhat late in making your payments. The insurer might let you pay late if you’re within the grace period, but expect to pay a hefty penalty. If you’ve paid the family’s auto insurance premiums at the standard rate but added an additional driver to the policy, the new driver isn’t covered until you pay the new, higher rate.
On the other hand, your insurance claim against the guilty party might be rejected because they haven’t paid their last payment. Note that an insurance card may have a valid date six months out, but that is only true if they make their monthly or quarterly payments. In this case, you’ll need to talk to an attorney to pursue compensation.
Not in Good Standing
An auto insurance policy in good standing is when you’re meeting all of the contractual obligations. Repeated late payments might result in reduced or denied coverage. Lying on your application will get your policy canceled. Failing to report that your teenager has started driving can get your policy canceled, too. If your auto insurance policy is not in good standing, you may not have insurance coverage if you’re in an accident. Too many speeding tickets might force you into a high risk driver pool. You might remain in good standing if you can afford those premiums. Talk to an attorney if you think your insurer is trying to avoid paying a valid claim.
Illegal Acts
Were you driving drunk when you got in the accident? Then the odds are that your auto insurance policy won’t cover the medical bills, repair bills and legal costs associated with your auto accident. Were you driving well above the speed limit? You may be considered at fault for the accident. Consult with an attorney before you give up on potential assistance from your insurance company. However, you should always talk to an attorney regarding your legal defense.
Your Insurer Doesn’t Want to Pay
When you’re dealing with a car accident, the last thing you want to have to do is fight your insurance company for the money you’re owed. This happens more often than people think. The insurance company might recommend cheaper, lesser repairs than the full body work the mechanic considers necessary. The company might assign part of the blame to you, reducing how much they need to pay. They might argue the accident is due to an act of God or falls under some other exclusion in your auto insurance policy. In other cases, the auto insurance company tries to pay much less than you’re due. You may have to hire an attorney to fight for full compensation.
You’ve Made a Mistake Regarding the Policy
Sometimes auto insurance claims are rejected because the person filing the claim doesn’t realize it isn’t covered. For example, basic auto insurance only covers the damage and harm you cause to others. This means that the insurance will pay for their car repairs but it may not pay yours. Another variation of this is someone filing a claim for vandalism or hail damage when they don’t have comprehensive auto insurance. An attorney can help you understand what your insurance policy covers and doesn’t cover. And a lawyer can help you pressure your insurer into paying a claim they legally owe.