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5 common reasons why auto insurance claims are denied

According to statistics on statista.com, between two and three million people are injured in motor vehicle crashes on U.S. roads every year. A vehicle crash not only puts the life of its occupants in danger but also poses a risk to the safety of other road users. It can result in serious and debilitating injuries, not to mention the fact that many crashes are fatal for those involved in the accident. Moreover, an accident can have a huge financial impact on vehicle owners, particularly when the insurance claim is rejected by the insurance company.

Car insurance is one of the most important investments for any car owner. In addition to providing financial safety in the event of an accident, it makes it easier for a vehicle owner to ensure compliance with state laws. However, claims can sometimes be denied, resulting in frustration and stress for vehicle owners. As a car owner, it is important for you to be aware of the reasons for claim denial and what you can do to avoid it.

Here are the top reasons that can result in insurance claim denial –

> Exceeding the policy limit

The insurance claim is paid per the type and extent of coverage you chose while buying motor insurance. Every insurance policy comes with a maximum limit. Many vehicle owners are tempted to buy a policy with minimum liability limits to keep the premium amount low. However, it can backfire in case of an accident. Sometimes, the amount claimed by the driver exceeds the maximum amount that can be paid under the policy. In such a situation, the insurance company will reject the claim or be paid only up to the policy limits. In most cases, vehicle owners must pay the excess amount if they’re at fault.

> Breaking the law

Your auto insurance claim will be rejected if you were found violating the law during the accident. Driving without a license, exceeding the speed limit, and driving under the influence (DUI) are some of the most common causes of denial of an insurance claim. Making illegal modifications to the vehicle can also be grounds for claim rejection. Also, if a driver is found engaging in any commercial activity at the time of the accident, the insurance company will likely deny their personal insurance claim. Needless to say, it’s important to adhere to traffic rules and maintain safety standards while driving a vehicle.

> Delay in filing the claim

The insurance company must be notified immediately after the accident, and the claim must be filed within a certain timeframe. If the driver fails to file the claim within that timeframe, the claim will likely be rejected. If you’re involved in an accident, make sure that you inform your insurance company before you give your vehicle for repair.

> History of false claims

Honesty is the best policy when filing an auto insurance claim. A history of making false claims can be a ground for claim denial. The insurance companies keep a database of claims history. If a policyholder had made any false claims previously or has exaggerated the extent of the damage, their claim is more likely to be rejected.

> Delay in medical evaluation

It is crucial to seek a medical evaluation immediately following an accident. This establishes the link between your injuries and the accident and helps ensure that any injuries that may not have immediately presented themselves are documented. If you fail to seek prompt medical attention, your insurance company may question the extent of your injuries and whether they are related to the accident, which could result in your claim being denied.

As a vehicle owner, knowing the common reasons for denying insurance claims after a car accident is important. By understanding these reasons and taking steps to avoid them, you can significantly reduce your chances of having your insurance claim rejected. At the same time, ensure you comply with state laws and have adequate coverage in place. By taking these steps, you can ensure that you’re financially protected in a crash.

Understand Your Legal Steps after Claim Denial with MANGAL, PLLC

If you are still unsure how to fight your denial of the insurance claim, consider contacting MANGAL, PLLC – experience car accident layer. Our lawyers have a proven track record and years of experience helping clients like you!

We can review your case for free to determine the legal options available to you in order to fight a denied claim. If you have yet to file your insurance claim, you can opt for a FREE initial consultation to understand your next steps.

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