The average American driver spends $1,655 each year on full coverage car insurance. With such a hefty financial commitment, drivers are told they get peace of mind from knowing they're protected in the event of an accident.

But, what if your insurance claim was denied? Would you know what to do?

In this article, we discuss how to handle accident claim denial. From how a car insurance claim works to when to hire a car accident lawyer, we cover it all. Continue reading to get peace of mind about your peace of mind.

Filing a Car Insurance Claim: How Does It Work?

Understanding how filing a car insurance claim works is an important part of understanding why your insurance claim was denied. Filing incorrectly or leaving out important details can be the cause of a denied accident claim.

Before jumping to conclusions about why your car insurance claim was denied, take a look at the forms you submitted and the information you provided.

Talk to a Car Accident Lawyer

After a car accident, you should report the damage to your insurance company as soon as possible. However, consider hiring a car accident lawyer to take care of the communication on your behalf.

If you decide to hire a car accident lawyer, be careful what you report to your insurance company. You should never admit fault or blame others until you can talk to your attorney. The law uses complex methods to determine fault.

Get the Details

Whether you hire a car accident attorney or not, you'll want to gather all of the details before filing a car insurance claim. The most important details include those listed below.

Name(s) and information of all involved
Insurance policy information
Police report
Video or images of the incident

While all you need to file a car insurance claim are the first couple items on the list, a police report and recordings of the incident are also helpful. They help provide additional information for your claim.

Wait for Review

The last thing you can do for your car insurance claim is wait for a decision. During this time, be sure to keep records of all communication. This includes who you talked to, when you talked to them, and what they said.

This type of information is important if you need a car accident attorney because your insurance claim was denied.

Insurance Claim Denied: Why?

A car accident claim denial means that the insurance company reviewed your claim but will not pay for any damages obtained in the specific accident.

If filing an insurance claim isn't the problem, then you're likely wondering why your insurance claim was denied. There are several reasons this can happen, but they don't mean you can't challenge the decision.

Lapsed Policy

The financial responsibility for a car accident tends to fall on the insurance company of the at-fault driver. This is something that the car insurance company determines, but a car accident lawyer can help.

If the at-fault driver has a lapsed insurance policy, they won't have the coverage needed for damages. Your car accident attorney can help advise you on other ways to get compensation.

Late Accident Claim

Some policies require you to make a car insurance claim within a certain period. If you wait to report an accident, the insurance company may claim they don't have enough information to investigate and deny your claim.

Reporting your accident and filing a car insurance claim should be your priority after an accident. While talking with an attorney is important, avoid significant delays in filing your claim.

Lack of Evidence

Another common cause of coverage denial is a lack of evidence. The insurance takes the information you provide them and investigates the accident. They determine fault, damage, and other factors.

If the insurance company can't confirm the events in your car insurance claim, they may reject it. This is why pictures and/or videos of the accident are important.

Disputes Over Injuries or Fault

Insurances companies are only willing to pay for damages caused by their clients. When they can't identify who was at fault for the accident, they may deny your claim.

Bad Faith

The term 'bad faith' refers to dishonest actions or fraudulent intent. When it's used to describe a car insurance claim, it means the insurance company intentionally denied a legitimate claim for coverage.

They may use fraudulent resources or actions to support their denial. This violates their legal obligations to their policyholders.

Your Options After a Denied Accident Claim

If your insurance claim was denied, there are different steps you can take to challenge the decision. You may not be able to change the outcome of the claim, but you can make sure the decision was made in good faith.

Ask for Clarification

If your insurance claim was denied, ask for a letter explaining the reason for denial. This is an essential piece of evidence to use in your case along with your notes from the communication along the way.

Having a letter to explain the decision can help support claims of bad faith. It can also show you if you made an error in filing a car insurance claim, which you can then correct.

Review Your Policy

Be sure you fully understand your car insurance policy before accepting a denial, especially if the reason is a lack of coverage.

If you notice inconsistencies between your policy and the letter, talk to your insurance company. They should provide clarification or identify if the denial was a result of an error.

Hire a Car Accident Attorney

If you can't get your car accident claim settled on your own, consider hiring a car accident lawyer. Working with someone who has experience in these types of issues can save you time, money, and frustration.

Talking with an attorney shortly after your accident is the most ideal way to handle filing an insurance claim. They can be sure to provide all of the right information and deal with communication on your behalf.

Get a Car Accident Lawyer for Accident Claim Denial

Don't wait to talk to a car accident lawyer if your insurance claim was denied. The right car accident attorney knows how to work with an insurance company to get you the coverage you need while saving you time and effort.

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