Can My Insurance Company Deny a Car Accident Claim?

By themselves, car accidents can feel incredibly overwhelming, and that is without the added stress of dealing with insurance companies. However, even after dutifully paying the necessary premiums and following proper procedures after a collision, some of our clients here at Wilson & Kinsman, LLC, have still received claim denial letters from their insurance companies, and those can make anyone feel frustrated and powerless. However, you may have legal options, and our Goshen car accident lawyers can help you take the appropriate action and potentially overturn an unfair denial.

What Reasons Might an Insurance Company Have for Denying Your Car Accident Claim?

Your insurer might cite coverage limits or policy exclusions as grounds for denying your claim, arguing that your policy did not cover your specific type of accident or that some specific exclusion applied to your situation. They may also argue that you missed a premium payment and therefore did not have active coverage at the time of the collision.

Additionally, if you fail to promptly report the accident to your insurance company—a timeframe that can sometimes be as short as 24–48 hours after the incident—you could introduce doubts about the seriousness of the accident and give insurers reason to deny your claim.

If the insurance adjuster assigned to your case has questions regarding the at-fault or liable party, they may argue that you caused the accident and deny payment. Similarly, if they believe that you misrepresented the facts of the accident when reporting the collision, they will likely reject your claim as well.

What Should You Do if Your Claim Is Denied?

First, review the denial letter carefully to find out why the insurance company rejected your claim. By law, they need to provide specific reasons for denial, which can help you understand your next steps. If necessary, contact your insurance company to clarify their decision, and speak directly with a claims representative. Take detailed notes during this conversation, including the representative’s name, date, and content discussed.

Next, once you understand the grounds for the denied claim, gather supporting documents and evidence that might counter the insurer’s reasoning. Photographs from the accident scene, witness statements, police reports, medical records, and repair estimates can all help strengthen your position.

Work to correct any mistakes or misunderstandings that might have led to the denial. Sometimes, clarifying a simple clerical error or miscommunication can help you resolve the issue.

How Do You Appeal a Denied Car Accident Claim?

Most insurance companies have established formal appeal procedures. Familiarize yourself with these procedures, which should appear in your policy documents or on their website. Typically, you need to submit a written appeal letter along with supporting documentation, which clearly identifies your claim number, the date of denial, and specific reasons why you believe the denial was incorrect. Most companies require appeal submissions within 30–60 days of the denial notification, though this deadline varies by insurer and state regulations.

Can You Take Legal Action if Your Claim Remains Denied?

If your appeal fails, but you still believe that you have a valid claim, you may want to consider legal action. For instance, if you have good reason to believe that the insurance company denied your claim without reasonable justification, you can pursue a bad faith claim. Insurance companies have a legal obligation to act in good faith when processing claims, and if they fail to do so, you can hold them additionally liable beyond your original claim amount. Additionally, if the company denies a legitimate claim that is clearly covered under your policy terms, you could sue for a breach of contract.

What Compensation Might You Recover if You Sue Your Insurance Company?

If you succeed in your lawsuit against your insurance company, you may recover payment for your original claim amount that the insurer wrongfully denied to cover your vehicle damage, medical expenses, lost wages, and other covered losses under your policy terms. Additionally, if your insurer wrongfully denied your claim, you might receive compensation for bad faith and breach of contract damages, which can help address any emotional distress, financial hardship, damage to credit, and other consequences stemming from the improper denial.

Why Is Legal Representation Important When Challenging a Denial?

Insurance companies maintain powerful teams of adjusters, investigators, and lawyers whose jobs involve minimizing payouts whenever possible, but experienced legal representation can help you level the playing field. Securing legal representation significantly increases your chances of a favorable outcome, and in many cases, retaining lawyer representation can help you receive higher settlements than others who choose to navigate the process alone.

Let the Goshen Car Accident Lawyers at Wilson & Kinsman, LLC Deal With Your Insurance Company While You Focus on Your Recovery

If you need to challenge your insurance company and appeal their denial of your claim, trust the Goshen car accident lawyers at Wilson & Kinsman, LLC. We will listen carefully to your concerns, develop effective strategies tailored to your situation, and prioritize your best interests at every stage of the insurance appeals process. Call us at 574-522-1900 or fill out our online form to schedule your free consultation. Located in Elkhart and South Bend, Indiana, we proudly serve clients in St. Joseph County and throughout the state.