If your claim is denied, regardless of how valid you think it is, you will most likely need to hire an attorney if you decide to oppose the denial. After all, insurers make a profit by receiving more money in premiums than they pay in claims. If an insurance company denies a claim in bad faith, it could be liable for consequential and punitive damages. If your claim is denied, you will receive a rejection letter stating why your car insurance will not be paid.
Fortunately for you, you don't have to accept this as a final judgment and you can challenge the reasons for the denial of the claim. Rejections often occur due to a lack of supported facts. You can seek legal help to fight a denied car insurance claim if other options fail. If the at-fault driver doesn't have enough coverage, you can receive all the money available in the other driver's insurance policy, and you can usually sue the driver directly for the remaining amount.
Most auto insurance companies will automatically prepare a letter explaining their reasons for denying the claim. Proof of loss must support your request for an auto insurance claim, and if you refuse to provide it, the claim is likely to be denied. In addition, most states have special laws that dictate how auto insurance companies must handle the claims of their own policyholders. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as approval of coverage, premiums, fees and charges) and policy obligations are the sole responsibility of the insurer.
This is because you have a legal contract with your car insurance company that requires you to comply with the obligations described in your car insurance policy. Let's talk about an essential aspect of life insurance for every car owner and, more precisely, discuss why an insurance claim can be denied. In some states with no-pay or no-play laws, you can't sue another driver for certain damages after an accident if they weren't insured at the time of the accident. Being denied an insurance claim in bad faith means that the insurance agency lacks adequate evidence to make an appropriate decision.
What you're really doing is telling your insurer, “Hey, I think this should have been covered and I want you to look into it again. People can file an insurance claim in bad faith against their own auto insurance company or against another. But in reality, all you have to do is find out why your claim was denied, ask your doctor for help, and send the information your insurer needs for the claim to be processed correctly. You can also sue your insurance company for bad faith practices and breach of contract if your claim was denied for unreasonable reasons.
However, if your car is stolen or causes an accident, the insurance company won't be able to help you without proper coverage. If your first-party claim is denied, the first thing you must do is obtain in writing the basis for the denial of the claim. In this case, appealing the insurance company's decision may result in the decision being reversed or an offer made to cover the damages. After analyzing the facts provided, the adjuster will determine if the auto insurance claim will be denied or accepted.