Top Reason Why Car Insurance Claim Denied

41 views 6:00 am 0 Comments April 10, 2022

Top Reason Why Car Insurance Claim Denied

 

If so, did you receive a letter from the insurance company denying your claim?
You can find out why insurance companies reject claims by watching this brief video.
(serious music plays)
Welcome to the LawFull channel, it’s me, Barry.
There are a number of legal issues that touch our daily lives that you can learn about in the videos on this channel.
Is there any chance you’d like to join our channel if you haven’t already done so?

And as always, feel free to get in touch with me if you have any questions, comments, or concerns.
In the event that I am unable to assist you, I will do my best to locate someone who can.
Let’s start with the most obvious basis for a denial by an insurance provider.
Now, this presupposes that you make a claim with the insurance company of the driver who hit you, rather than your own insurance, rather than a third-party insurance.

There has been an investigation into the accident as a result.

A number of the insured have been questioned.
Possibly you provided them with an audio recording of your remarks.
It was determined that your claim was unfounded after they examined the physical evidence.
What are your choices if they deny your claim because they presume that you are at fault for the accident, or that you are accountable for the accident, and you disagree?
Now you’re faced with a decision.

To get your property repaired, you can file a claim with the insurer who insures you, or you can file a claim with your own insurance company if you are solely dealing with property damage and have insurance that covers the damage.
However, what if you’ve been injured in some way?
For example, what if you were injured in the collision but didn’t believe you were at fault?
You’re out of options if you don’t take action.
Now, I’ve discussed it numerous times on this channel.

For small injuries or damage to your property, you probably don’t need a lawyer.
A personal injury lawyer is strongly recommended for those who have suffered moderate to serious injuries, however it is not required.

Reach out to me if you need a recommendation for a local personal injury attorney.
As a result of my extensive legal network, I would be pleased to put you in touch with any of the attorneys in my network.
The driver’s insurance company may not hold you entirely responsible for the collision, as a final consideration.

They may declare that their insured is responsible for 80% of the damage, while attributing 20% of the blame to you.
What further can be done?
Well, I made an entire film on the subject of when it’s OK to take some degree of responsibility for an accident.

That’ll be in the video’s description, of course.
At the end of this video, there will be a link to it.

So have a look at that.
Another reason why an insurance claim may be denied is this.
It doesn’t matter if you filed a claim with the other person’s insurance or your own.
Then there’s the circumstance when you’re seeking to claim from an insurance policy that has expired.
Another common reason insurance claims are denied is because of lapsed policies, which I see more often than any other reason.

Many people fail to renew their insurance plans.
There’s a chance they didn’t receive the letter.
They could have simply forgotten to pay for whatever it is.
It’s imperative that you pay your insurance premiums on time, since if you don’t, you won’t be covered in the event of an accident.
It’s also important to note that when I say at the time of an accident, I mean at that time.

Someone who got into an accident and had a lapsed insurance coverage contacted me through this channel.
At his house, he found out “oh my God I hadn’t made a payment.”
After the accident, he tried to make a payment.
after just a few hours of time.
Why did the insurance company deny the claim?

There was no insurance policy at the time of the accident.

There are three common reasons why insurance claims are declined: the claimant, the victim, did not file a claim within the required time frame.
This is a regular occurrence when dealing with subpar insurance providers.
Local insurance businesses are frequently the ones running late-night commercials.
They have a rigorous 30-day deadline for filing a claim after an accident or other incident.

And they’ll reject your claim if you don’t file inside that time limit.

Allstate and State Farm could also be affected by this.
That’s why I always try to encourage others.
“As soon as possible, file a claim.”
File a claim with both insurance companies as well.

Of course, you should pursue compensation from the person who hit you, but you should also make a claim with your own insurance provider.
This is the subject of a video I just finished recording.
I’ll include a link to the video in the following explanation.
However, you must also register a claim with your own insurance carrier as soon as possible so that you don’t miss the deadlines for doing so.
There are several reasons why insurance claims are denied, and fraud is one of them.

Alternatively, the claimant may have told the insurance company a lie.
Lies told to an insurance company will almost always result in a denial of a claim.
And I’m referring to whether you’re going to tell the third party’s insurance company or your own insurance company that you were at fault.
The insurance company is almost certainly going to refuse your claim if you lie to them about something.

Now, I’m not going to address the subject of fraud.

The insurance sector, I believe, is plagued by widespread fraud.
The few instances that I’ve encountered fraud, which has occurred only a few times in all these years, I haven’t taken any action.
As a reminder, “do not lie to the insurance company,” will not be discussed in this article.
Wait until the conclusion of this video because I’m going to explain why you should be cautious about the things that you say when you first sign up for your insurance policy with an insurance company.
One of the most common reasons for claims to be rejected is because the individual driving was an exclusionary driver at the time of the accident.

Exactly what do I mean by “that,” and how can I explain it?
You may have had a child living in your home with a terrible record when you signed up for your insurance policy.
In exchange for providing you with an insurance policy, the insurance company deliberately excluded that driver from coverage.
When you file a claim with your own insurance provider for those damages, your daughter or son, who was driving the car at the time of the accident, will not be covered.
Drivers who are operating your car at the time of an accident may also be removed as drivers in other circumstances.

The only way to know who is and is not covered by your insurance policy is to check it.
That’s why I usually urge individuals to get a copy of their policy immediately after an accident so they can read it for themselves.

You may have been breaking the law when you were involved in an accident, and your insurance company might deny your claim.
Even if the accident was caused by your speed, it’s unlikely that you were speeding at the time.
To give an example: You have a prior DUI and were involved in an accident while driving drunk; what are your options?

You may have a clause in your policy that states that if you were engaged in unlawful behavior, your insurance coverage would not cover you.
It would be in their best interest to prove it to me once more if that is the case.
You may say, “Show me where that’s in my policy.”
An insurance company may, however, choose to deny a claim in this circumstance.
A lot of Uber, DoorDash, GrubHub, Lyft, and other rideshare drivers have also made accusations.

Because they were engaged in commercial activity at the time of the accident, their insurance claims with their own personal insurance have been disallowed.

That appears to have changed.
Even though the driver was driving for Uber at the time of the accident, State Farm recently informed me that their coverage covered the driver.
It’s important to verify your coverage to make sure you’re insured if you’re doing something commercial.
As far as insurance claims are concerned, this is the eighth reason why they may be denied.

So let’s pick a scenario.
Assume you own a $80,000 Mercedes-Benz and the person who hits you has $15,000 in property damage insurance.
There’s a $65,000 discrepancy between the two estimates.
Only the $15,000 that the insurance company agreed to cover is on the line.
The insurance company would only pay you $15,000 in this situation even if your claim isn’t dismissed.

Assuming all goes well, you now have a substantially greater insurance policy to draw from.
I have also seen claims falter, if not dismissed, because of this.
You signed your insurance policy, so that’s the ninth reason a claim can be denied by the insurance company you filed it with.
When signing your insurance policy, it’s possible that you lied.
So, I believe this ties back to the prior discussion of fraud in the line that we had in this video.

However, you failed to inform them that the car was going to be driven by two 16-year-olds who were living in the house at the time of the accident.
It’s possible that you lied about your driving history.
When you signed your insurance policy, you may have lied to them about something.

Insurance companies have tried to exploit that information to deny claims.
By the way, this isn’t an all-inclusive guide.

They will try to deny your claim for any reason they can.
What they’re all about is postponing, dismissing, and reducing claims.
However, these are the reasons I’ll be discussing in relation to insurance companies refusing to pay claims.
There are situations when you may want to accept a little amount of the blame for an accident, as I discussed earlier in the video.
A direct link to that video is what I’m looking for.

So if you’d like to see it for yourself, the next video is for you.
Finally, your thoughts on the law are in order.
Did an insurance company deny your claim after an accident?
We’d love to hear from you in the comments below.
Hey, thanks for checking out this short video on insurance claim denials.

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