What Can I Do if an Insurance Company Denies My Car Accident Claim?

The last thing you want after a traumatic car accident is for the insurance company to deny your claim, but it is important for any injured victim to recognize that denials happen, and they do not mean your fight for compensation is over. You can take steps to protect your rights and seek the money you deserve.

You have two ways to seek financial compensation when you have suffered an injury in a car accident. Your core legal right is to file a lawsuit against the driver responsible for the accident. However, you may not need to go that far to obtain a settlement check for your injuries. In fact, you rarely need to go to court in a car accident case.

Many car accident lawyers advise their clients to wait to file a lawsuit. If the other driver has followed the laws of their state and was prudent, they have purchased car insurance to protect them in the event of an accident. When there is evidence that they are to blame, their insurance company will defend them and pay for damages up to the policy limit.

However, insurance companies have less incentive to pay you fair compensation when you do not have legal representation. They have teams of attorneys and adjusters who are skilled at minimizing payouts, and they will prevent you from getting the money you deserve. Seeking legal assistance from an attorney with experience in car accident claims can provide you with an advantage.

Insurance Claims Are Largely Informal

Claims written on wooden blocks The insurance claims process is informal, and it is best to resolve matters with the insurance company without needing further legal action in court. It is often possible to reach a settlement agreement with an insurance company after extensive negotiation handled by your car accident attorney.

In fact, this is how most car accident cases reach a resolution. Injured drivers work through the other motorist’s auto insurance company because that is often the most effective path to compensation in the least amount of time. In some states, you might have to pursue a no-fault insurance claim in addition to a third-party claim. The good news is that your car accident lawyer will handle all relevant claims.

The Insurance Company May Deny Your Claim Without Strong Proof

However, insurance companies are only in the business of making settlement offers after they see compelling proof in your case. Although you may not have the same burden of proof that you would have if your case goes to court, you still need to present the insurance company with satisfactory evidence that its driver was negligent in the accident.

Here, the term negligence means that the other driver did something unreasonable under the circumstances. Then, the other driver takes on a legal obligation to pay you, and they will do so through their insurance company. Before you reach that point, you need to present specific evidence to the insurance company about what happened during your crash and what the other driver did to cause it. Once the insurance company reviews that evidence, it should make you a settlement offer if it is persuaded by what it sees.

The Insurance Company Must Settle Certain Claims

Insurance companies owe a legal obligation to their driver to try to settle claims where there is compelling evidence. Suppose they fail to resolve a claim they should have, and their driver becomes personally liable for damages. In that case, insurance companies can even be liable to their driver in a bad faith claim. One may think that the insurance companies are rational actors and will at least try to settle cases where it looks like their driver was at fault.

At the same time, an insurance company is also a for-profit business, and paying out money for claims comes directly from its bottom line. If insurance companies pay out too much money, they may suffer, and shareholders may sell their stock. Insurance company executives want their share price to be as high as possible because their job depends on it.

Accordingly, insurance companies may look to deny claims whenever they can. If claims fall into a gray area, they may have a more plausible argument about why they did not settle the claim when they first received it. Insurance companies may be even more likely to deny a claim when an individual files it but will take notice of someone with legal representation.

How Insurance Companies Respond When They See Claims

Once insurance companies receive your claim, they will take the time to review it. You can expect them to try to drag out the process as much as possible because they want you to be more willing to accept what they offer (provided that they offer you a settlement agreement at all).

Insurance companies can respond to your claim in one of several ways:

They may accept liability and make you an initial settlement offer (although this offer is likely for only a fraction of what your case is worth, and you need to negotiate further to get what you deserve).
They can outright deny your claim and refuse to pay you any money.
They may try to make you a settlement offer, but it reflects their belief that you were partially to blame for the accident. Thus, the offer is low.

Insurance companies have to explain why they have denied your claim. They may not think you provided evidence that their driver was responsible for the accident. Whether in a formal courtroom or an informal insurance company claims process, you have the burden of proof to demonstrate that the driver was at fault for the accident.

If you cannot meet this burden of proof, you cannot qualify for even a dollar of compensation. Insurance companies can be very stringent about interpreting when you have met this burden of proof. Alternatively, insurance companies may deny your claim because they think that you were the one who was at fault for the accident.

An attorney can help gather evidence to support your claim. Insurance companies may deny your claim for various reasons, such as insufficient evidence or discrepancies in the information provided. Attorneys have the resources and experience to thoroughly investigate the accident and gather relevant evidence, such as police reports, witness statements, medical records, and expert opinions. This evidence can strengthen your case and increase the likelihood of a successful resolution.

Insurance Companies Do Not Get the Final Say

If the insurance company denies your claim, it is the end of the claims process but not the end of the story regarding your compensation. Insurance companies represent the other driver, so they cannot also serve as a judge and jury in your case. An actual jury still holds sway over your legal rights, and you always have the option to take your case to court to seek compensation for your injuries.

You Can File a Lawsuit with the Help of a Car Accident Attorney

If you do not choose to begin your case against the other driver in court, you can always go there whenever it becomes necessary. Nothing says you must go through the insurance company claims process or abide by whatever result it decides. Insurance companies do not have the power to decide anything – they only have the power to try to settle something on behalf of their driver.

When you hire a car accident lawyer, they will review the reason for the denial of your claim and advise you on any next steps in the case. If your car accident attorney believes that the insurance company got it wrong, they will recommend you file a lawsuit against the responsible driver in court. Your lawsuit will be directly against the driver since they bear the blame for the accident. However, you will still see the insurance company again because it will defend its driver throughout the legal process.

Always Get a Car Accident Lawyer if the Insurance Company Denies Your Claim

If you filed the insurance claim independently (something you should rarely do), now is the time to hire a car accident attorney if the insurance company denies your claim. Your attorney will review your case, the reasons for denial, and let you know whether you should try to re-engage the insurance company or proceed directly to court in a lawsuit.

Insurance companies are not the decision-makers when you file a car accident lawsuit. Instead, they are your adversary on the other side of the table presenting their case to the jury. Here, the jury has the power to render the ultimate decision in your case. Your car accident lawyer will gather further evidence to prove your case throughout the lawsuit process, including speaking directly to the other driver in a deposition. Over time, it may become apparent to the insurance company that you have enough evidence to win your case in front of a jury, and it may be more willing to try to reach a settlement agreement at that point.

Ultimately, the jury will decide about:

Whether the driver should be liable for your injuries
How much the responsible driver will need to pay in compensation (if they do not have enough insurance coverage, the driver is personally liable to pay you the balance, which is a scenario that should frighten insurance companies)

If you win your case, the jury will issue a verdict that the driver is responsible for paying, but, likely, your case will not reach that point. Most car accident lawsuits will settle before you get to a trial because you and the insurance company have too much at risk.

Consider Hiring a Car Accident Lawyer to File Your Insurance Claim

Little crashed autos on table in courtroom. Gavel and two small toy car models on desk in courthouse. You want to put your best possible legal foot forward when you first file your claim, so there is less of a chance that the insurance company will even deny your claim in the first place or try to blame you for the accident. Insurance companies are opportunistic, but they are also rational business actors. They are always calculating their odds and risks and trying to size up who is on the other side of the table from them. They will know your car accident lawyer by their reputation.

You should consider hiring a car accident lawyer immediately after your crash so they can help you at the outset of the claims process. Insurance companies may be less likely to want to tangle with you if they see that you have an experienced car accident lawyer representing you. They know that litigation presents them with more risks and may run up business costs. There is a reason why insurance companies try to settle far more claims than they outright deny: they are all about managing their risks and controlling their costs. A car accident lawyer can make the insurance company pay dearly, so you will likely get more respect if you have one for your claim.

Now is the time to hire a car accident attorney if you do not already have one. Many things can happen during your case that can mean a heavier legal lift in the future. You can make a mistake or fail to gather evidence to prove your case. A car accident lawyer can immediately go to work for you to both protect your legal rights and work to establish your right to full and fair financial compensation for your injuries. Do not fear finances when you are looking for legal help. Personal injury law works differently than other areas of the law. Here, you do not pay your lawyer by the hour; you only pay them if you win your case.

Hiring a personal injury attorney is essential if the insurance company denies your claim after a car accident. They can guide you through the legal process, gather evidence, and negotiate with the insurance company on your behalf. With their experience, you can increase your chances of obtaining the compensation you deserve. Remember, you do not have to face this challenging situation alone – an attorney is there to help you every step of the way.