No one wants to get into a car accident. Between the damage to a vehicle and the pain of crash injuries, it can be a lot to deal with, financially, physically and emotionally. Add into this a denied insurance claim, and people often feel like they are at their wits' end.
However, before you assume an insurance company is to blame for all the bad luck and pain of an accident, it can be important to understand why claims are often denied. Having this information can help motorists be prepared and avoid missteps that could make matters worse in the aftermath of a crash.
As examined in this Fox Business article, car insurance claims may be denied if:
- You did not tell the truth. If you lie on your insurance application or on a claim, the company can deny your claim citing fraud.
- You are not covered. If you did not renew your policy or make payments, your policy can lapse and you won't be covered. Similarly, if you do not understand your policy and what exactly it covers, you may file a claim for coverage you do not have.
- You were driving recklessly. An insurance policy may state that a company will not cover accidents or injuries stemming from drunk driving or other types of reckless driving.
For these and other reasons, an insurance company may deny a claim in good faith. However, for accident victims, a denied claim can feel unfair and dishonest.
These situations often give rise to legal disputes that must be resolved in court or through alternative dispute resolutions like mediation or arbitration. Depending on the reason for a denied claim and other details of the case, it can be possible for both sides to provide arguments, clarifications and information that make it relatively easy to come to a satisfactory agreement.
However, these cases can get contentious and quite complicated, so it is often wise for both parties to have the guidance of an attorney who is experienced in personal injury claims and insurance laws.