What to do if Auto Insurance Company Denies Your Claim

Auto insurance companies may seem to help insure ones’ car but they are here to make money. And they generally tend to do this by denying the clients’ claim. So one must make sure that the insurance company does not take undue advantage of the client.

A car accident insurance denial can be both costly and disappointing. The Auto insurance denial letter from the insurance company must be taken care of to make sure that the denial is appropriate. Companies have a natural tendency to save their money by denying claims. This happens when they are in doubt regarding the claims from the client. After all the insurance company is here to make profits for the shareholders and not always to pay for the claims of the insurer.

There may be two reasons for claim denial:

  • The Insurance Company may not find any merit in the claim.
  • Secondly, the insurance company may deliberately want the client to give up his claim.

If an insurance company denies a claim from the client, the client may appoint a lawyer who will represent him. In such cases the lawyer may take the clients claim from the insurance pipeline and file a car accident law suit.

In case of a claim denial the client may consult the State Insurance Commissioner who is appointed to help with the insurance regulation. The legal process can be further handled by the Insurance bad Faith Attorney if the client wants to sue the insurance company for breach of contract or violations of the insurance code. The Insurance Company can also be sued under the Consumer Protection Act or Unfair Settlement Practices Act if it can be proved that the insurance company denied the clients’ claim for no good reason.

It is imperative on the part of the client to know why his or her insurance claim was denied by the Insurance Company. The following could be the valid reasons:

  • One of the most common reason for a claim denial could be the failure on the part of the client to pay his premiums on due time or before the grace period.
  • The damage amount claimed may exceed the policy limits mentioned on the policy declarations page. In such cases the insurance company will not pay the excess.
  • When a new car is bought and it is not mentioned in the insurance policy within the given specified time.
  • When the insured name does not match with that of the one mentioned in the policy.
  • In case of older vehicles there may not be collision coverage there will be only liability insurance. So the insurance company can rightfully deny the collision coverage.
  • If the client makes an uninsured motorist claim and the driver who is at fault has a car insurance, then the client should file the insurance claim with the at fault driver and not in his own name.

Last but not the least the client through his attorney can directly file a law suit against the responsible driver personally or his insurance company.

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