The average American pays around 3% of their income on car insurance alone each year, with the average cost of car insurance topping $1548 annually.
Car insurance policies are complex and come with risk factors (to you) buried deep in their paperwork.
Should the unfortunate happen and you get into an accident and file a car insurance claim, you count on your car insurance to help you out. But what if it doesn’t and your claim gets denied?
Reasons for Denial of Car Insurance Claim
You receive a letter from your car insurance company, stating: Insurance claim denied. Be sure to read the letter fully to find out the reason(s) why the adjuster denied your claim. Some of the more common causes of denials are:
Your Policy Has Lapsed
It sounds like a no-brainer, but in our busy lives, things can get overlooked. If you miss paying your car insurance and have an accident, your claim will surely get denied.
Perhaps you have collision coverage but not comprehensive coverage and your car was stolen, which is a claim that falls exclusively under comprehensive coverage, resulting in you not having coverage for theft.
Other gotchas are the limits on bodily damage/injury. If there are multiple or serious injuries, you could run out of coverage if your limits are too low.
Not Enough Coverage
Let’s use the example of an accident where your car was totaled and would cost $35,000 to replace, but you only have $25,000 in property damage coverage. You would be denied the difference of $10,000.
The Other Driver’s Insurance Denied Coverage
If you are in an accident that isn’t your fault, the other driver’s insurance comes into play. For reasons beyond your control, the other insurance company could deny coverage for your losses.
The Information Provided Was Incomplete or Inaccurate
It is important to be precise and accurate when filling out forms for car accident insurance claims and then when speaking with an adjuster. If the information given is incomplete or inaccurate, you could get denied.
If possible, you should document all the information about the accident as soon as possible after it happened.
- Get testimony and phone numbers of witnesses
- Make a drawing/map of the accident and a description of how it occurred
- Get the driver’s license and other contact information of the other driver
Steps to Take After Claim Denied
Such as witness testimony, police reports, damage estimates, and anything else that pertains to the accident. The more, the better.
Send an Appeal Letter
Address it to the department that deals with denied claims. Include policy and claim number and name of the agent who rejected the claim and the date of the denial. Include all your gathered evidence.
Keep your tone formal and professional. Write only about facts that pertain to the claim and avoid adding anything extra.
Get Legal Help
If your written appeal is also denied, your last step is to contact a lawyer and have them review your claim denial. A lawyer may see a way to help you reclaim your losses.
Don’t Give up When Denied
A car accident is traumatic, and getting your car insurance claim denied can be equally so.
Once you have settled the matter of your insurance claim, your next step will likely be to find an auto repair specialist. Please visit Limerick Auto Body on the web and fill out our form for an estimate in the Limerick, Pennsylvania area.