In the US, people pay an average of $1,674 every year for car insurance. However, in Florida, this figure is higher, with drivers spending about $2,364 every year. Additionally, insurance requirements in the state require car owners to have Personal Injury Protection (PIP) and Property Damage Liability (PDL) car insurance. The required coverage aims to reduce payment delays for car accident claims.
Unfortunately, some insurance companies in the state are still known for refusing to pay car accident insurance claims. This article can teach you what to do if you or your loved ones are facing this problem. But, before we dive into this issue, you first need to know why your insurance company refuses to pay an auto claim.
A Look Into Why Insurance Companies Refuse to Pay Car Accident Claims
Several factors may result in your insurance provider denying your insurance claim. Below are some common reasons why your claim could be denied.
Missed Payments
If you got into an accident during a time when you missed your payment, your insurance provider could deny your claim. This is why it is crucial to pay insurance on time or even early to ensure that coverage is in force when an accident occurs and you have to file a claim.
A lapse in paying for your coverage not only leads to a denied claim, but it can also result in fines.
Exclusions
When you are choosing a car insurance provider, you have to pay attention to the coverages and exclusions. Filing an accident claim for medical bills or other costs and expenses that your insurance may not cover will result in a denial of a claim.
Coverage Issues
You may be tempted to choose state minimum liability limits to save on car insurance costs. Although this option can be affordable, you may find yourself exhausting your coverage limits.
For instance, you have $25,000 in property damage liability coverage, but you destroyed another’s car worth $40,000. This means that your auto insurance company could pay up to $25,000, but deny the rest of the payment. This could then leave you vulnerable to a $15,000 lawsuit.
Other Common Reasons
Below are other reasons that could lead to a denial of your claim:
- You did not seek medical attention on time. In Florida, car accident victims must seek medical help within 14 days after their accident. Insurance companies can use your failure to seek immediate medical attention against you if you file a claim.
- You did not report the accident promptly.
- Your injury and damages were not caused by the accident.
If you are having trouble getting your claim approved, you may need the help of a personal injury attorney. With their guidance, you will have expert help when applying for an accident claim with your insurance providers.
What Can You Do When an Insurance Company Refuses to Pay
A denied accident claim can pose several legal problems for you. Here’s what you can do when an insurance company refuses to pay for your claim.
Understand Your Claim Denial Letter
If your insurance provider denies your car insurance claim, they will send a claim denial letter. The document outlines what factors led to the decision. You must understand their reasons so you can formulate an effective appeal plan.
Appeal Your Car Insurance Claim Denial
Fortunately, you can always appeal a denied insurance claim regardless of the type of insurance. Today, insurance companies have a process for appeals.
- Gather evidence: Check any documentation from the insurance company about your motor vehicle accident and collect the evidence you need to appeal.
- Draft an appeal letter: In your draft letter, you should outline why you disagree with the insurance company’s decision about your car accident insurance claim. Remember to give as much information as possible and reference the evidence you collected.
- Consider hiring an attorney: If you are overwhelmed with the appeal process or just want an expert’s opinion, you may want to hire a car accident attorney. They can review the evidence and other documents to create a demand letter telling the insurance company to respond and defend its claim denial.
How Can You Go Against a Claim’s Denial
If you think you have a good reason to challenge the denial of your valid claim, you can try mediation first. This settlement process won’t need legal representation and is affordable.
You can also hire a claim investigator or an independent claims adjuster to work with the mediator and the insurance company. The adjuster is there to support the policyholder and the policyholder’s claim, not the insurance company’s.
If you still need more support to cover car accident compensation, hire a lawyer. With the guidance of a skilled attorney, you will have a better chance of getting a successful appeal.
Did You Know?
“Your last resort when an insurance company denies your car claim is lodging an appeal at the Department of Insurance. They can help you have your claim changed or adjusted.”
Take Action When an Insurer Denies Your Car Accident Claim
If your insurance company denies your claim, you may need legal help. Insurance providers can recognize that you are serious about getting your claim when you take legal steps.
An insurance lawyer can help you know why your claim was denied in the first place and collect evidence that can help your case. With an experienced attorney, your insurance company might reconsider their position.
Call a personal injury attorney in Miami to help you contest a claim’s denial. Diamond & Diamond Lawyers have a long history of favorable outcomes when it comes to car accident claims, so they can help you get the results you want. Visit our website today or call 1-800-567-HURT for a free consultation.