What You Should Know
- There are several reasons why an auto insurance claim might be denied
- If your claim is denied, contact your insurance company and ask for documentation
- You can write your letter of appeal, or you can also hire an attorney to help if your claim is denied
Being involved in an auto accident is a very stressful experience. Unfortunately, the situation can become even more challenging if your auto insurance company denies your claim. If this happens, you will wonder what you must do if your auto insurance claim is denied.
Keep reading to learn the answer to this important question, as well as more information regarding how auto insurance claims work about denials.
What to do If Your Auto Insurance Claim Is Denied
The first thing you should do if your auto insurance claim is denied is to contact your insurance agent, if you have one, and ask for all documentation related to your claim. This can include:
- Police reports
- Photos from the accident scene
- Statements from eyewitnesses, if applicable
If your auto insurance company does not have some or all of this information on file, you can contact the police department for help. At this stage, you are gathering the evidence you will need to help you decide if you should file an appeal.
When you speak with your agent, if you have one, you can also discuss what are the different types of auto insurance coverage to clarify if your policy should have covered the damages.
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Drafting an Appeal Letter Is the Next Step When an Auto Insurance Claim Is Denied
After reviewing the documentation and the reason for the denial, you may still feel strongly that your claim was wrongfully rejected. If this is the case, the next step is to draft an appeals letter.
In the letter, you will explain why you do not agree with the decision and provide as much supporting evidence as possible. This can include any errors you spot in the denial letter, information from your auto policy and what coverage you have, and facts from the police report.
If you need help or support during this process, you can also contact your state’s insurance department to ask for advice on submitting a complaint.
Why Auto Insurance Claims Are Denied
There are many reasons why your auto insurance claim can be denied. For example, if you accidentally forgot to pay your auto insurance premium, your coverage might have lapsed when the accident took place.
Another reason a claim will be denied is if you do not have the type of coverage that will pay for the damage. For example, some people will let their comprehensive and collision coverage go once their vehicle is over 10 years old.
Unfortunately, if someone steals the vehicle or you are at fault in an accident, your insurance company cannot cover your vehicle. Because of this, understanding how auto insurance works is so important.
Options If Your Auto Insurance Company Denies Your Claim
While many insurance claim denials hold up after an initial appeal, sometimes the insurance company will reverse its decision entirely or offer an amended claim covering at least part of the damage.
If you are unhappy with your auto insurance company’s decision after the initial denial or after someone reviews your claim, you might consider hiring an attorney. This can be especially helpful if the repairs to your vehicle will cost a huge amount of money or if you total your car.
Final Thoughts on What to Do If Your Auto Insurance Company Denies Your Claim
Learning that your auto insurance company denied your claim could be immensely upsetting. It is still worth gathering all applicable evidence and carefully reviewing it.
Once you have all documentation handy, draft a strong appeal letter, and consider hiring an attorney knowledgeable in insurance law to assist. If you are unhappy with the final decision and wish to change auto insurance companies, you can start by finding auto insurance quotes online.
Frequently Asked Questions
How do I respond to a denied insurance claim?
Draft a letter that requests a review of the denial. State the reason for the denied claim, explain how you reviewed your policy, and feel the service should be covered.
Why does my insurance keep denying my claim?
Insurance claims will usually be denied if there is a dispute as to fault or liability. For example, auto insurance companies will only pay you if there’s clear evidence that its policyholder is at fault for the injuries or damage.
What happens when a claim is declined?
Regardless of your claim’s validity, you may need to hire an attorney to help fight the denial.
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Leslie Kasperowicz
Farmers CSR for 4 Years
Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance…
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