It is not uncommon for car accident insurance claims to be denied. An insurance company can deny a claim for several reasons, including a failure to show the accident caused the damages or injury or that the party seeking reimbursement was the cause of the injury. If your claim is denied, however, you still have recourse through which to seek compensation.
Send an Appeal Letter
An appeal letter is a formal letter through which you state your dissatisfaction at your claim’s denial and refute the facts that the insurance company stated was the basis for their denial. If the company did not provide any basis for the denial, you should argue that there was therefore no honest reason for the claim to be denied. This appeal letter can also include the facts of your request, such as the cost for repairing your car and medical expenses incurred from injury due to the accident.
If it is your insurance company that has denied a claim, you should prove that you are up to date on your payments and that the claim you made is covered under your policy. Use documentation of cleared checks and copies of your policy explanation to support your argument.
Send a Demand Letter
You may also choose to send a demand letter rather than an appeal letter. In this letter, you are more firmly stating your belief of entitlement to the claim. This letter consists of three to four paragraphs detailing the accident, the injuries and damage the accident caused, the amount of money you seek and how you derived that amount, such as the calculations used. Include documentation to show your expenses. This letter is a prelude to filing a lawsuit for reimbursement.
File a Bad Faith Claim
Many companies that deny a claim have no basis for the denial. In such a situation, you might consider filing a bad faith claim against the company. This type of claim makes the argument that despite having been paid on time for coverage and despite the coverage falling within the purview of the policy, the insurance company still refused to pay. A bad faith claim is a serious claim that is investigated by state, federal and local regulatory agencies to determine whether the insurance company is acting as it has promised. These claims are complicated, time consuming and contentious, and so it is important to have legal representation during their processing.
Obtaining Legal Representation
An insurance company denying a claim is a bad omen of things to come. Often, no offers of settlement or other negotiations will be made by the insurance company. If an insurance company has denied a claim that you honestly believe you are entitled to, seek legal assistance.
