Car Accident Claim Denials: Why It Happens & What to Do
Getting into a car crash can be scary. And it’s even worse if the insurance company won’t pay for the damage. Unfortunately, it happens more often than you think. Our team of Alabama car accident lawyers can help you understand why insurance companies might say no to your claim. Knowing this can help you stand up for yourself and deal with the situation better.
Car accident insurance is a type of insurance that helps cover the costs if you get into a car crash. It’s like a safety net that can help pay for things like fixing your car or covering medical bills if you or someone else was hurt in the accident. It’s there to help you out when things go wrong on the road.
Key Points:
- Car accident insurance or auto insurance serves as a financial safety net covering property damage, bodily injury, and personal liability resulting from car accidents.
- After a car accident, it’s crucial to report the accident, gather evidence, file a claim, and be aware of potential challenges in the claims process.
- Common reasons for car insurance claim denial include lack of coverage, fault and liability issues, insufficient evidence, procedural errors, and other factors such as pre-existing conditions or vehicle modifications.
- If your car insurance claim was denied, options include appealing the decision, seeking mediation or arbitration, filing a complaint with the Alabama Department of Insurance, or pursuing a lawsuit.
How Do Car Insurance Claims Work in Alabama?
Car accident insurance, also called auto insurance, is like a safety net for your finances if you get into a car crash. It helps cover different things like property damage, bodily injury and personal liability.
Here’s an overview of how car insurance claims work in Alabama:
- Report the accident: Inform your insurance company about the accident within 10 days. Provide details like the date, location, and parties involved.
- Gather evidence: Collect photos of the damage, accident scene, and any injuries. Get witness statements, police reports, and estimates for repairs.
- File your claim: Contact your insurance company to formally file a claim. Submit all gathered evidence and documentation.
- Investigation: The insurance company will investigate the claim. It includes contacting other parties involved and analyzing the evidence. They might request additional information or conduct their investigation.
- Settlement offer: The insurance company will offer a settlement amount to cover your damages based on their investigation. This could include vehicle repairs, medical bills, lost wages, and pain and suffering (depending on your coverage).
Why Was My Car Accident Insurance Claim Denied?
It’s tough dealing with the aftermath of a car accident, and it can feel even worse if your insurance company says they won’t help you. But knowing why they might deny your claim can make things a bit easier. Here are some common reasons why they might do that:
Lack of Coverage
- Policy exclusions: There are specific situations where your insurance won’t cover. For instance, if you were driving under the influence or participating in a race, your insurance might not provide coverage.
- Insufficient coverage: The amount of insurance you have might not be enough to pay for all the damage or injuries. This often occurs when you choose the minimum required liability coverage.
Fault and Liability
- Alabama is a contributory negligence state: If you’re partly to blame for the accident, your claim might get denied altogether. Or the compensation you get could be lessened based on how much you’re at fault.
- Uninsured/underinsured motorist: If the person who caused the accident doesn’t have insurance or enough insurance, your claim might not get paid. You can only be paid if you have uninsured/underinsured motorist coverage.
Evidence and Documentation
- Missing or incomplete information: Not providing all the required information or leaving some details out, such as accident reports, police records, or medical bills, can put your claim at risk. It’s essential to make sure you have everything you need to support your case.
- Suspicious activity: Similarly, if there’s any suspicion of dishonesty or fraud, such as making up information about the accident, your claim could face immediate denial. Being truthful and providing accurate information is crucial to the success of your claim.
Procedural Errors
- Failure to notify: Forgetting to tell your insurance company about the accident right away can make them say no to your claim. In Alabama, you’ve got to report to them within 10 days. If you wait too long, they might think something’s up and say no to your claim.
- Missing deadlines: If you miss the deadlines for giving them papers or going to appointments about your claim, it could make your case worse.
Other Factors
- Pre-existing conditions: The insurance company might say some injuries you got were already there before the accident. And they won’t pay for them.
- Vehicle modifications: If you changed your car in ways that aren’t standard and that didn’t come with the car when you bought it, it could affect your claim. It depends on what happened in the accident and what got damaged.
Remember, insurance is there to help, but it’s also a business. They have rules to follow, just like you do. It’s essential to review your policy carefully and understand what is and isn’t covered. Additionally, always provide accurate information when purchasing a policy and filing a claim to avoid potential denials.
If My Car Accident Claim Was Denied, Can I Re-Appeal or Sue the Insurance Company?
If your insurance company says they won’t pay for your car accident, there are a few steps you can take to try and change their decision:
- Appeal: You can ask your insurance company to take another look at your claim. Sometimes, giving them more information or evidence can help them see things differently and approve your claim.
- Mediation or Arbitration: Some insurance plans have options where a neutral person helps you. The insurance company talks things out and reaches a fair agreement. This can be a good way to solve the problem without going to court.
- File a Complaint: If you believe your insurance company did something unfair or against the rules, you can complain to the Alabama Department of Insurance. They can investigate and see if your insurance company did something wrong.
- File a Lawsuit: If you’ve tried everything else and still think your insurance company is wrong, you can take them to court. But going to court is a big step and can take a long time.
Is Your Car Accident Claim At Risk? Call Our Alabama Car Accident Lawyers Now!
Understanding possible insurance claim denial reasons doesn’t mean your insurance claim will be easy, but it helps you get ready. You might also want to seek legal advice from our Alabama car accident lawyers at Petro Accident and Injury Attorneys. We can help you prepare and have a better chance of getting your claim sorted out.
At Petro Accident and Injury Attorneys, our lawyers are more than ready to fight for the compensation you rightfully deserve. Our team can also assist in other personal injury cases such as truck accidents, nursing home abuse & neglect, worker’s compensation, and more.
Don’t hesitate to seek legal advice if you believe your car insurance denial is unfair. Contact us today to know more!
