Why My Insurance Company Denied My Accident Claim? - AA Law

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Common Reasons Your Car Accident Claim Was Denied

January 17, 2024 Alan Ahdoot
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Being in a car accident means you’re eligible to make an insurance claim. If another driver is at fault, you’ll contact their insurance. In a hit-and-run, you’ll likely reach out to your insurer. Regardless of what happened, you’re bound to seek help for medical bills and other damages. But, while many rely on insurance to cover expenses, some end up paying out of pocket because of a denied claim.

Keep reading to understand why this occurs and learn what steps you can take if your car accident insurance claim is denied.

7 Reasons Your Car Accident Claim Was Denied

A denied car accident claim can be frustrating for injured victims and their affected families, especially if they have burdensome hospital fees to think about. 

Below are the most common reasons why your car accident insurance claim was denied:

Waiting Too Long to File a Claim

While there are no strict deadlines for insurance claims, a delay in submission could harm your chances. Most insurance companies operate within a short timeframe and also adhere to the statute of limitations in California, so it’s crucial to reach out promptly. Aim to report the accident within 30 days of its occurrence to kickstart the claims process.

Claiming Too Much in Damages

Sometimes, the requested damages amount may exceed the other driver’s policy limits. In such instances, insurance companies might deny your claim instead of agreeing to the policy amount. 

Some out-of-pocket costs, like lost wages and therapy expenses, may not be covered in certain policies. Drivers should be aware of their policy limits if they find themselves responsible for an accident.

Not Providing Enough Information

Inaccurate or insufficient documentation of injuries and damages could result in a denied insurance claim. Even a minor mistake may lead to rejection. Insurance companies anticipate serious injuries but require supporting medical or police reports.

Being Responsible for the Accident

California doesn’t operate as a no-fault state for personal injury accidents. If the other driver’s insurance company deems you more than 50 percent at fault, your valid claim may still be rejected. Instances like drunk driving or violating traffic laws may lead to significant payments for the at-fault party or voiding of any coverage.

Dispute Over Liability

Disagreements over fault may lead to a liability dispute, with the insurance company disputing the assigned responsibility. In such cases, you might pay for damages out of your pocket.

Lapsed or Canceled Insurance Policy

Drivers involved in accidents risk losing coverage if they neglect their car insurance payments. Lapses or cancellations can occur due to forgotten payments, address changes, or outdated payment information.

Injuries Were Undiagnosed

Swift medical attention is vital for claim approval. Delayed medical care may make it challenging to prove liability. Insurance companies might also argue that injuries result from pre-existing conditions unrelated to the accident. 

To prevent this, seek medical care promptly, even if no immediate injuries are apparent at the scene. Avoid stating that you were uninjured, as this can impact the claim, and ensure proper medical evaluation regardless.

Hospitalized woman prepares insurance claim for her accident.
Undiagnosed injuries after an accident can result in the denial of your car accident insurance claim.

What to Do After a Denied Car Accident Claim

Getting a denied insurance claim can be frustrating. However, there are ways you can fight back for what you deserve. Here’s how:

Hire a Car Accident Lawyer

If your accident claim is denied, consulting with an auto accident lawyer is crucial. Your attorney will initiate the process by drafting a demand letter or a formal compensation claim. This document should clearly outline your perspective, detailing the damages, bodily injuries, and evidence supporting the other driver’s fault.

Your lawyer may also argue that the insurance company engaged in improper claims practices or denied claims without conducting a thorough investigation. If proven, you might secure an additional claim on these grounds.

Negotiate With Your Insurance Company

There might be a formal appeals process available to proceed with negotiations. Your attorney can assist in negotiating a more favorable settlement. This could lead to arbitration or exploring alternative resolution methods, avoiding the need for a trial.

Get a Copy of the Police Report

To enhance your chances in a liability dispute, obtaining a copy of the police report from the accident scene is crucial. This ensures accurate information and strengthens your position in claiming the compensation you rightfully deserve.

Speak With an Experienced Lawyer at Adamson Ahdoot

Although it can be disheartening to learn your claim was denied, don’t let that stop you from fighting for your rights. Hire an accident lawyer at Adamson Ahdoot and let our team investigate what happened to your insurance claim. 

We will dive deeper into the matter and advise you on the next steps. Whether you want to proceed with the appeal or move forward, we will help you navigate your current situation. Call us at (800) 310-1606 today to schedule your free consultation with a premier injury attorney. We offer free consultations available in both English and Spanish.

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Our team can better advise you on your legal options once we receive any available evidence about the incident.

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