Let’s be honest: Car coverage is a hefty expense. So it’s only natural to want to get compensated after getting into a car crash. However, the harsh reality is that insurers don’t share the same opinion — traffic accident claims can (and do) get rejected quite often.
Why Exactly Would a Claim Be Denied?
To a large extent, the relationship between motorists and insurance companies is defined by law. Just as the former are legally required to purchase coverage, the latter have a duty to treat policyholders in good faith. As such, any claim denial has to be justified accordingly.
Some of the common justifications used by insurers include:
-Policy exclusions: It’s not unusual for an insurer to state that a claimant’s policy doesn’t cover the kind of damages they present.
-Lapsed policy: It’s often said that one waives their eligibility for coverage by not paying premiums wholly and timely.
-Failure to notify: Insurers insist that the failure to report an accident as soon as it occurs leaves no room for investigation. Check your policy to see how much time you have to file a report.
-Excesses: Claims are often denied if the damages sought exceed the limits of the policy in question.
-Disputed liability: An insurer will reject a claim if they have a reason to believe that their policy wasn’t at fault for the accident. They could also argue that the damages sought weren’t a direct result of the crash.
-Fraud: This could range from providing false information when obtaining coverage to filing an exaggerated claim.
What Next?
As highlighted earlier, you and your insurers’ interests are far from being aligned. So don’t be surprised if they respond to your traffic accident claim by making an argument for its rejection — this’ll allow them maximize their profits. What’s more important to note is that you don’t have to take their word for it.
There are several options you could take after receiving a denial letter. As a rule of thumb, you want to review your policy and note down the company’s reasons for denial. Feel free to seek expert assistance while you’re at it.
Ideally, your insurer will have a process for appealing a rejected claim. An auto accident attorney can help you collect the documents and evidence you’ll need to make a solid case. If you’re lucky, the insurance company will respond by inviting you to negotiate for a settlement. Otherwise, it could be that you’re better off filing a lawsuit. Have your lawyer evaluate the claim to figure out if this will be worthwhile.
