Wrongfully Denied Car Insurance Claim? Help Is Here!

posted byLA Attorneys GroupMay 19, 2020

Consumers like you pay regularly for their car insurance and expect to be compensated in a prompt and fair manner on their claims.

There is peace of mind in the idea that car insurance providers will back up the policies agreed upon by both the insurance provider and the consumer. Dealing with an insurance company who is denying a claim on your car insurance is the last thing anyone wants to deal with while they are also dealing with the other consequences of an accident like hospital bills, pain or recovery from injuries, and more.

What Qualifies As Wrongful Denial

Insurance companies are required to act in what’s referred to as “good faith” when dealing with insurance injury claims related to a vehicle accident or denying a claim.

Successfully proving that the insured’s claim was wrongfully denied centers around proving that the expectation of good faith was not upheld by the insurance company.

A breach in the duty of acting in good faith can be displayed in a few different ways including:

Failure to Investigate

The insurance company is required to fairly investigate any claim they seek to deny. If a thorough investigation is not conducted, then the insurance company is at risk of breaching their duty of acting in good faith.

Failure to Negotiate

Insurance companies are required by most policies to attempt to negotiate a settlement on the insured’s behalf. Failure to negotiate a settlement is often a breach of policy and can lead to denying a claim wrongfully.

Unwarranted Denial

This one is a bit more tricky as there are a number of ways an unwarranted denial of a claim can appear. If your claim was denied, but you cannot identify one of the following common reasons for claim denial in your case, there is a good chance that your claim denial was unwarranted.

Common Reasons For Denied Insurance

Unfortunately, some denials are valid. There are a few things to look out for before pursuing a wrongful denial case against your car insurance provider.

Likely reasons for a rightful denial of a car insurance claim include:

Claim Type

Although policies are sometimes confusing, most layout specific types of claims that are covered under the policy that is agreed upon by the consumer and the insurance company. If a claim does not fall within the claim types specified, it is at risk for rightful denial.

Lack of Payment

When an insurer and the insured enter into a policy contract, there is an expectation of payment that must be met. If the insured does not pay the agreed upon premium, then claims under that policy are at risk for denial.

Late Notice

Notifying your insurance provider as soon as possible about the accident or claim is essential for an accepted claim.

Fault

If there is adequate reason to believe the person filing the claim is fully at fault for the accident, then the insurer can legally deny a claim unless specified in the insurance policy.

Pre-Existing or Unrelated Conditions

Insurance providers may be able to prove that some medical conditions are preexisting or, at least, unrelated to the accident. If this is the case, then the claim will be legally denied.

We Can Help with Denied Insurance!

If you believe that your car insurance claim was wrongfully denied by your insurance company, we can help! Contact us today to find out if you are eligible to pursue legal action against your insurance company.

The lawyers at LA Attorneys can help you get the claim you deserve!

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