Getting into a car accident is stressful enough. But imagine going through all the trouble of reporting the crash, filing your insurance claim—and then getting denied. Now what?
If this has happened to you, you’re not alone. Many drivers each year face denied car accident claims, often without knowing why or what they can do next. It’s estimated that 5% to 15% of auto insurance claims face rejection.
Hi. In today’s blog, I will help you understand why are car insurance claims denied, what your rights are, and how you can take action. So, if that is what you want to know, you have come to the right place!
Therefore, keep on reading this article till the end, and thank me later…
States with High Denial Rates
Some states have a higher number of auto insurance claim denials. California, Texas, and Florida lead the nation in complaints.
- California: Common issues include claim denials, delayed payments, and settlement disputes.
- Texas: Expect claim handling issues and low settlement offers.
- Florida: You might face fraud-related denials or coverage disputes.
Why Are Car Insurance Claims Denied After Accidents?
There are many reasons an insurance company might say “no” to your claim. Knowing them can help you avoid mistakes or prepare for an appeal.
1. Lack of Evidence
If there’s not enough proof of the accident, the insurance company may reject your claim. For example, if you didn’t take photos or get a police report, they might argue there’s no clear fault.
| Example: You were rear-ended but didn’t call the police. Without a report, the insurer might claim there’s no proof the accident even happened. |
2. Policy Exclusions or Lapses
Your policy might not cover the type of accident you had. Or, if your policy lapsed—even by one day—your claim could be denied.
For instance, if you are filing a claim for how the accident has affected your quality of life, your basic car insurance policy might not automatically include coverage for mental health counseling to help with that.
In that case, you might need a special type of coverage for those kinds of services. That si why you should always check that your insurance is up to date and understand what it actually covers.
3. Delayed Filing
Most insurers require you to report the accident within a certain number of days. Reporting the accident too late often causes denial. Waiting too long could cost you the chance to file at all.
| Fact: According to the Insurance Information Institute, most policies require you to report an accident “promptly,” which can vary by provider. |
Other Reasons also include:
- Insufficient or Inaccurate Information: Providing incomplete or incorrect details about the accident
- Disputes Over Fault: The insurance company might argue you were at fault.
- Pre-existing Conditions: The insurer might claim your injuries result from a condition you had before the accident
It’s also worth noting that a significant percentage of claims can be denied within the first 72 hours without a proper investigation.
What Are Your Rights If Your Claim Is Denied?
Many people don’t realize they have legal rights after a car accident claim rejection. You don’t have to just accept the decision.
Here’s what you can do:
1. Request a Written Explanation
Insurance companies are required to explain why they denied your claim. Ask for it in writing.
| Legal Right: Under most state laws, insurers must give a detailed reason for any denial. This helps you know if the decision is fair or worth appealing. |
2. Appeal the Decision
You can file an internal appeal with the insurance company. This means they’ll take another look at your claim and supporting documents.
| Example: If your claim was denied for lack of evidence, you could submit witness statements or a police report during your appeal. |
3. Hire a Personal Injury Lawyer
This is one of the most important steps you can take. A lawyer can speak to the insurer on your behalf, file a lawsuit if needed, and help you understand your rights.
| Fact: According to statistical data, those who seek the assistance of a personal injury attorney are, in most cases. awarded 3.5 times more money for their claims compared to individuals who don’t turn to legal help. |
What Happens If the Other Driver’s Insurance Denies Your Claim?
If the accident was not your fault, you would most probably take legal action against the guilty driver’s insurance company. However, what if they say “no”?
1. They Might Dispute Fault: The other side of the case may be that the other party will declare that you were partially or even fully responsible for the collision.
2. They May Delay the Process: There are some companies that purposely elongate the process of claims and, in addition, hope to save money by making the policyholder give up. You will definitely need a lawyer at this point.
3. Legal Action Could Be Necessary: If the other driver’s insurance carrier will not pay you, your only option may be to file a lawsuit against the at-fault driver directly or the company of his/her insurance.
What to Do Immediately After a Claim Is Denied
If you’ve received a denial letter, don’t panic. Here are the first steps you should take:
- Read the denial letter carefully. Understand the exact reason for the rejection.
- Gather your documents. This includes the accident report, medical records, photos, and witness info.
- Talk to a lawyer. Even if you’re not sure about suing, a free consultation can give you direction.
- Keep communication documented. Always get things in writing, including emails and letters from the insurance company.
How a Personal Injury Lawyer Can Help You?
It’s not just about knowing the law—it’s about having someone like the experienced team at Child & Jackson fight for you.
Here’s how they can help you:
- Review your insurance policy
- Collect evidence and talk to witnesses
- Negotiate with the insurance company
- File a lawsuit if needed
Fact: According to Nolo, the average personal injury settlement is significantly higher when a lawyer is involved—even after legal fees are deducted.
Real-World Example: What Denial Looks Like
Case Study: John was hit while turning left at a green light. The other driver ran a red, but their insurer denied the claim, saying there was “not enough proof.”
John hired a lawyer, who found a nearby camera that recorded the crash. With this evidence, the insurer settled for $50,000—covering John’s medical bills and lost wages.
Lesson: Never assume the denial is final. Often, new evidence or legal help can change everything.
Question People Often Ask About Car Insurance Claim Denial
There are a few questions that people often ask related to why their car insurance claims was denied. Here are a few of these:
1. Do I Have To Go To Court To Fight A Denial?
It’s not necessary all the time. There are many cases that end through negotiation or appeals.
2. How Long Does The Appeals Process Take?
It could be as short as a few weeks while it could take as long as several months depending on the insurance company and the complexity of the case.
3. What Should I Bring To A Lawyer Consultation?
Your denial letter, the police report, medical records, pictures of the accident, and the insurance policy.
4. Can I Still Get Compensation If My Claim Is Denied?
Of course. Being denied a claim doesn’t suggest that you have no other choice. There is no denying that you can present your case to the court or hire a lawyer.
5. What If I Was At Fault Partially?
In most states, you can be awarded some compensation even when you were partly to blame. The term “comparative negligence” is used for this situation. For example, a 20% fault would mean a 20% reduction on your payout.
6. How Long Do I Have To Appeal?
This is determined by your state and the insurer you are with. Most states give you 30-60 days to make an appeal.
Don’t Give Up After Your Car Insurance Claim is Denied
It can feel really discouraging when your claim is not accepted, especially the claim related to a car accident. However, remember that your rights are always intact, and there are plenty of ways to use them.
From understanding the fine print of your policy to getting legal support, each step you take brings you closer to the compensation you deserve.
Action Steps:
- Read your denied letter again
- Look through all accident-related papers
- Speak with a lawyer who deals with personal injuries
- Do not let insurers push you to make a hurried settlement
It is difficult to get the money you are owed when you are dealing with an insurance company following a car accident.
The knowledge of why your claim has been denied and the steps you can take in that respect would let you be in a better place to claim your benefits and stand your ground.
Just because they rejected you first, do not think that you cannot get what you deserve anymore. There are still several possible options which you need to check out!
Besides, we are not here to lose/give up on the hope of finding a solution, right?
Read Also:
- The Importance of Police Reports in Car Insurance Claims
- Why Truck Accident Cases Are More Complex Than Regular Car Accidents
- The Difference Between Insurance Claims and Personal Injury Lawsuits in Car Accidents
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