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What to Do if Car Insurance Claim Is Denied

Claim Denied, What to Do? - Man assessing the car's status
Stacey Martin
Stacey Martin
September 9, 2022

Nobody likes getting their car insurance claim denied. After all, you've been paying premiums for years in the hopes that you'll never have to use your policy - only to be told that your claim isn't covered when you need it.If your car insurance company denied your claim, don't worry - you may have options. This article will show you what to do if your car insurance claim is denied and how to appeal the decision if you need to.

Figure Out Why Your Claim Was Denied

Claim Denied

When you are notified that your car insurance claim is denied, you should receive a letter from your insurance company explaining why.

Pinpointing and understanding the reason for the denial is the first step in deciding what to do next. Here are a few possible reasons why your claim may be denied.

Lack of Documentation

Your auto insurance company will need certain documentation when you file a claim. This might include a police report, medical bills, or repair estimate from an auto body shop. Your claim will likely be denied if you don't have all the required documentation.

Your Policy Doesn't Cover the Type of Claim

There are many types of car insurance policies, each covering different types of claims. For instance, some policies only cover damage to your car, while others might also cover medical bills or property damage. Filing for something that is not covered can result in a car insurance claim denial.

Your Policy Didn't Cover the Accident

Automobile Insurance Coverage

Even if your policy covers the type of claim you're making, certain exclusions might mean your particular accident isn't covered. For instance, if you have collision coverage but the accident was caused by flooding, your claim will probably be denied.

Clerical Error

Sometimes, claims are denied simply because of a clerical error from the claims adjuster when the claim was processed. If you think your claim was denied in error, it's worth contacting your auto insurance company to see if they can help you resolve the issue.

File an Appeal

If you believe that your car insurance claim was denied in bad faith, you have the right to file an appeal. The appeals process varies from company to company, but you will need to submit additional documentation or information along with an appeal letter to support your case.

For instance, if the insurance company denies your claim because of missing documentation, you might be able to resubmit it and have your claim approved. Or, if your claim was denied because of a clerical error, the insurance company might be able to correct the mistake and pay out your claim. When writing your appeal letter, explain why you disagree with their decision.

Contact Your State Insurance Commissioner

If you've tried to appeal the decision and your claim is still being denied, your next step is to contact your state insurance commissioner. The insurance commissioner is responsible for regulating the insurance industry under state law and can help you if you're having trouble with a car insurance claim.

When contacting the insurance commissioner, ensure all your documentation is handy so they can investigate the claim. This might include a copy of your insurance policy, the denial letter from the insurance company, and any other correspondence you've had with the company.

Get Help from a Lawyer

Group of lawyers

If you've tried everything else and you're still not getting anywhere, it might be time to get help from a lawyer. A lawyer can review your case and help determine if you have grounds for a lawsuit.

Remember that suing an insurance company can be a long and complicated process. And, even if you win, there's no guarantee that you'll be able to collect the money you're owed. Before taking this step, talk to a lawyer specializing in auto accidents to get more information about your legal rights and options.

Work With a Reputable Auto Body Shop

While dealing with your insurance company after an accident can be a nightmare, getting your car repaired doesn't have to be. At D-1 Auto Body, we eliminate the hassle of getting your car repaired after an accident. Contact our full-service body shop in Los Angeles today to find out how our exceptional customer service can help get you back on the road.