February 18, 2011

What To Do If An Auto Insurance Claim Is Denied After An Accident

If you recently have filed an auto insurance claim and have discovered that your insurance company has denied it, you will be of course wondering what steps you can take when faced with a denied auto insurance claim. Do not give up just yet and start shopping for new auto insurance quotes. There are several reasons why an auto insurance claim may be denied, whether they are valid or not.

If you have received notification of a denied auto insurance claim, take note of the stated reasons provided by your insurance provider in the denial letter. Also meticulously go through your insurance policy. The denial could be based on misinformation, lack of information, or other errors.

Some of the more common reasons for having a denied auto insurance claim include having the amount of the damage being claimed exceeding what your insurance policy limitations are and your insurance provider will not cover such excess or, you may have purchased a new vehicle without notifying your insurer to include it to the policy within the time period specified.

If after going over the denial letter as well as your insurance policy, you still remain confident that you have been wrongfully denied a claim, there are several steps you can take in order to try and correct the situation. Keep in mind that you hold certain rights not just under your insurance policy but under state law as well. It is the duty of your insurer to promptly and fairly settle your auto insurance claim in good faith.

First, reply to the denial letter sent and inform the company about the mistake made, and provide the necessary documents to support your claims.

Second, you may make an appeal to the State Insurance Commissioner. One you have filed an appeal, your insurer will give you the opportunity to provide your input on the case, the claim, the denial, and the cause of your appeal. In essence, you will be given the chance to negotiate for the appropriate resolution.

Third, you can hire a lawyer to discuss errors committed by the insurer.

A last option would be to sue your insurer for breach of contract or for bad faith.

Whichever step you take, once your insurance provide realizes their mistake, they will reopen your insurance claim and proceed with its investigation. Always feel free to ask for any clarifications regarding the denial.

Obviously, handling a denied auto insurance claim is not as simple as shopping for auto insurance quotes. Hire a professional to help you fight a fair battle. Accident attorneys understand the ins and outs of car insurance claims and are very skilled and knowledgeable when it comes to fighting for your rights.