1. Bad-Faith Reasons
A bad faith claim denial is what happens when an insurance company denies a valid claim for reasons that are not valid, unclear, or even unethical. If the company won’t (or can’t) give you a good reason for why they denied your insurance claim, it could be in bad faith. In these situations, an experienced car accident attorney is your best resource for holding the insurance company accountable and getting the compensation you need to cover your bills and other costs.
2. You Waited to Notify the Insurance Company After a Crash
This one is tricky—if you wait to let the insurance company know you were in a crash, this can jeopardize your claim.
It’s not uncommon for insurance companies to say they weren’t able to assess your claim while the evidence was “valid,” which can be true in some cases. However, it can also be used as an excuse to get out of paying injured people the compensation they need. If you’re skeptical about the insurance company saying you waited too long to file a claim, don’t wait to call a lawyer who can help.
3. You Don’t Have the Right Type of Insurance Coverage
Every auto policy has different types of coverage, which might include things like comprehensive coverage, property damage, or collision coverage. Depending on the nature of your claim and the type of policy you have, your claim might not be covered by your own insurance policy.
However, some of the language of these policies can be quite misleading, and the person handling your case (called an insurance adjuster) might not be 100% forthcoming about what your options are. If something basic is suddenly not covered by your policy, it’s time to consider calling an attorney who can help you uncover the truth.
4. You Obtained Insurance Under False Pretenses
If you apply for coverage with false information, your insurance is not valid, and you will likely be faced with to serious fines—and be on the hook for any injuries or damages you cause.
However, if the insurance company wants to find a way to get out of paying a claim, they will. Claiming your insurance was obtained under false pretenses is one tactic they might use, so if this is the line you’re getting from your claims adjuster, know that you still have options.
5. The Insurance Company Says You’re Responsible for the Crash
If the insurance companies can’t agree on who caused the wreck or is blaming you for causing the crash, your compensation could be substantially delayed (or you might not get compensated at all). This is a common tactic to get out of making fair payments if there was any question about liability in a crash.
Working with an experienced car accident attorney with quality investigators might help you establish liability and resolve your claim.
Related Content: How Long do I Have to File a Personal Injury Claim in Texas?
6. Your Insurance Policy Had Lapsed
If you didn’t renew your car insurance policy, you are no longer carrying valid coverage. And if you are not insured at the time of an accident, you could be on the hook for all injuries and damages, regardless of whether you were at fault for the crash. Not only that, but you’ll likely be heavily fined for not having active coverage while on the road. Your best bet is to pay your policy term in full or opt-in for auto payments to avoid any lapse in coverage.
7. There Isn’t Enough Insurance Coverage to Cover Your Costs
Having a claim that’s worth more than your policy limits isn’t necessarily grounds for an insurance claim denial, but you certainly won’t get all your costs covered if the policy maximums are low.
There can be a few ways around this. The first is to be prepared by purchasing your own Uninsured/Underinsured Motorists policy (UM/UIM). The other is to contact an attorney who can identify every possible source of compensation. For instance, if the driver who hurt you was over-served at a bar, you may be able to hold that establishment accountable.
8. The Insurance Adjuster Is Stalling, Rather Than Giving You an Answer Outright
Again, this is not necessarily an outright denial, but it is a tactic that many car insurance companies use to get people to drop or abandon a valid claim to avoid paying it out. Most of the time, these adjusters know that the claimants don’t have the experience or know-how to negotiate their insurance claims. They’re also betting on people being too exasperated by the process to feel like fighting for very long—especially if they’re dealing with injuries, missed work, and more.
In these situations, consider hiring a car crash lawyer who can handle the insurance company negotiations and communications so you can focus on healing and getting your life back to normal.
9. You Were Doing Something Illegal at the Time of the Crash
If you were engaged in any activity that is illegal, prohibited by your policy, or that would otherwise void your coverage (e.g., driving drunk), you likely won’t have a valid claim and won’t be entitled to compensation.
10. You Don’t Have a Diagnosed Injury
If you’re filing a claim to cover the costs of your medical bills and injury-related costs, you’ll need proof that you’re hurt. Medical bills, doctor’s notes, and other documentation is the most straightforward way to prove your case. Without this proof, you’ll have a hard time filing a successful insurance claim.
If you’ve been in any type of accident, it’s always a good idea to see a doctor who can identify injuries early. Not only does this help with the claims process, but it saves you time, money, and pain down the road.
