19
Oct
2021

When Would an Auto Insurance Company Deny Your Accident Claim?

There are multiple reasons why an auto insurance company might deny a claim. Insurance companies will provide a reason for the denial in a formal letter or email, which is often based on their interpretation of the policy. When you submit a claim to your auto insurance provider, they do not make an automatic decision.

auto insurance company

They have a professional investigate your case to determine whether the situation meets one of the covered terms in the policy. Sometimes, there are valid reasons to deny coverage on an insurance claim. Here are some reasons why an auto insurance company might deny a motor vehicle accident claim.

1. When Coverage Limitations Do Not Cover the Claim

When obtaining a car insurance policy, you will have to select among different coverage limitations. Minimum allowable coverage will vary from one state to another. Many drivers carry only the minimum coverage necessary to legally operate a motor vehicle in the state.

In such cases, the Car Insurance in Pennsylvania that a driver carries might be insufficient to compensate for the total value of damages. If you encounter this situation, contact a legal professional. They will fight for the compensation you are owed for your injuries.

2. Auto Insurance Lapsed Prior to the Accident

The insurance provider might deny the claim if you did not pay your premium on time. Non-payment is a common cause of lapsed insurance policies. Besides non-payment, coverage may lapse if you missed a filing deadline. Insurance companies may require new accident claims to be submitted within a certain time period to be covered by the policy. Failure to report the accident timely could result in a denial of coverage.

3. A History of Fraudulent Claims

If the insurance company goes through your claims history and finds several fraudulent claims, the company may reject your claim. At the very least, filing previous fraudulent claims establishes a pattern that insurance carriers may use as evidence to deny any new claim, even if the new claim is real.

4. A Pre-Existing Medical Condition

If you have a medical condition that pre-existed the accident, they might reject your claim. This is one key area where injury lawyers can save the day. While you may have had a pre-existing medical condition, a traumatic car accident could have worsened it.

In other words, your condition would not be as bad as it is but for the car accident. A lawyer will know what evidence is necessary to establish the worsening of your condition and will zealously negotiate with the insurance provider on your behalf.

5. You Were Responsible For the Crash

Even if you were not entirely at fault in the situation, they may attempt creative arguments as to why your liability forecloses any opportunity for compensation. Contact a lawyer to hold them accountable. The insurance company must provide proper reasoning for their denial based on law and the policy contract. An attorney will review the facts and fight for your rights.

6. Unauthorized Use of Another’s Motor Vehicle

There are times when auto insurance companies may attempt to reject your auto accident claim for one of the following reasons: either you did not give the driver permission to drive, and the driver caused the accident, or your car was stolen, which the insurance company might argue was your fault.

Attorneys play a crucial role in winning all types of auto accident cases involving a wide array of vehicles like cars, buses, trucks, motorcycles, bicycles, etc. 

You can book a free consultation and discuss the details of your accident with an experienced Philadelphia Auto accident lawyer on your side. Our lawyers will fight for you and get the compensation you are owed. We will travel the extra mile to help avoid a denial of your claim.

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