Several kinds of accidents keep happening around the world and cars accidents are one among them. When there is a car accident, claiming for damages is one the first things that people do. Read also: The first steps after a car accident.
Why Do Insurance Companies Deny Claims
While some people are successful in making claims, a lot of people find it difficult to make it, whereas they get lesser amounts as settlement. Also, there are times when the insurance claims will be rejected for several different reasons. If you are one among them, then you should know why your insurance claim was denied.
It is important that you get to know your claim was denied. Knowing this can help you to see if there are chances to dispute the decision. There are numerous reasons for insurance companies to reject car insurance claims. Read also: How claims adjusters determine the value of cars.
What you can do if your accident claim has been rejected
People might only have their vehicles covered against liability and that there is no coverage for collision. If this is the case, then the denial of the claim in correct. Car owners may make uninsured motor claims under their insurance policies, while the other party was insured.
Sometimes, insurance companies reject the claims due to the reason that people don’t qualify as named insured and it turns out that they excluded in their parents’ policies because their parents don’t want them to drive their cars.
Sometimes, people won’t notice that their coverage is lapsed as they may have missed to pay their premium. Similarly, there are many other reasons for insurance to reject claims of loss. If people believe that their claim has been denied without a valid reason, there are a few things that they can do to appeal the denied claims. They have some rights under the stale law and their insurance policy. Their insurance providers have to promptly and fairly negotiate for settling their accident claims.
How you can handle accident claims denial
If the mentions reason their insurance was denied does not reflect the real facts of their claim, the can dispute the same. When people opt for disputing the denial of claim, they consider a few actions. Writing a letter to the insurance providers to let them know about their mistakes and providing documentation that can support their response. Read also: How you can get your claims process in your favor.
Typically, the insurers may negotiate with them to give a fair compensation. People can also appeal the insurance provider’s decision to the State Insurance Commissioner. They also can file a lawsuit against the insurance company for contract breach, bad faith and more.
If people have decided to pursue such an action, they have to hire an insurance attorney for handling the legal proceedings. If after people either threaten or take action under the bad faith claim, insurance providers might reopen their claim to go forward with an investigation.
If the provider holds stiff, and people think they are being bullied, they can go ahead and file a bad faith insurance lawsuit. In order to file such a lawsuit, people should get in touch with an attorney who is reputed and has experience in handling auto accident insurance cases. To find a reliable attorney for handling such type of a case, people may have to look out on the internet.