If a claim against your automobile insurance company was recently denied or refused, then you know how disappointing and upsetting that news can be. When reading the denial letter, make sure to acknowledge the specific reasons provided to you. Just like everyone else, insurance providers can, and actually, do make errors, so you should double check the reason they disapproved your request. It may be that you’re actually covered even though they say that you’re not.
Please also note that most insurance firms save cash by denying client’s unfounded requests. They’re not being dishonest or underhanded, but when there’s not enough information provided or other doubt they may deny you without further investigation. You definitely have the right to challenge a coverage denial, especially if the denial doesn’t take all the facts into account.
Explaining Why Your Auto Insurance Request May Have Been Denied
It’s important to know the exact reason your request was declined. If you understand the reasons, then you can further evaluate the situation to decide if you should dispute their decision. The following is a list of common reasons automobile insurance claims are initially denied:
The policy doesn’t carry coverage for the event claimed.
You aren’t listed as an insured driver on the auto policy.
Filed claim for Uninsured Motorist with your insurance provider and the other person or car involved in the incident was actually covered by another policy at the time of the incident.
The insurance policy was canceled because of failure to pay premiums on time.
Failed to add a new vehicle to your insurance policy within the allotted time stated in the policy declarations.
The total cost of damages in your request exceeds coverage limits and the insurance provider won’t pay the cost of damages claimed beyond the stated policy limits.
If you have any remaining doubts after reviewing the insurance provider’s explanations behind their refusal, then you should seriously consider appealing the denial. You’ve certain legal rights, both under your own insurance policy declarations and under local or state laws. Your insurance provider must fairly and quickly work out a resolution for the amount of your insurance claim in good faith. This doesn’t mean they have to agree with you, but they must show they did their due diligence in providing a fair settlement to your claim.
How You Can Successfully Dispute Unwarranted Auto Insurance Denials
If the explanation for why your automobile coverage request was declined doesn’t accurately demonstrate the truth behind your application for coverage, then you absolutely have the right to file a dispute against their conclusion. If you choose to proceed with a formal dispute, you’ll want to consider the following:
In writing, notify your insurance provider that you believe they made an error and supply supporting documentation as proof. They’ll need to negotiate with you to provide a fair settlement in accordance with insurance laws.
File an appeal of the insurance provider’s unfair decision with the Insurance Commissioner’s office in your state.
If necessary, file a legal case against your insurance provider citing bad faith operating practices, breaching contractual obligations, or violating your home state’s laws regarding insurance policies.
The auto insurance provider may resume your case as a result of pending legal action and begin an internal investigation at their own expense. Pending the findings, they might be willing to pay your claim amount, settle for a different amount, or you may need to proceed with your case in court.
What If You’re Still Dissatisfied?
At the conclusion of the claim process, when your request and any subsequent appeals have been settled, you might still feel that you weren’t provided the high level of service you expect to receive from your agent or the automobile insurance provider. If you’re truly not satisfied with the level of service or respect you received, then consider switching to another insurance provider with a better reputation. Start looking around for better automobile insurance right away. There’s no need to wait until your current insurance policy ends to find new coverage with a company that will respect and value you as a customer.