Why Car Insurance Companies Deny Claims: Top 7 Reasons By Experts

Published on: August 21, 2021

Last Updated on: August 25, 2021

Car Insurance Companies Deny Claims

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Insurance companies are doing business, so they care more about their bottom line than about the claimants and policyholders. Insurance companies are in business because they do not pay every claim, which comes their way.

You can always contact the best auto accident attorneys who can help to get the claim that you are making. But whenever an insurance company is denying or rejecting your claim, there has to be some particular valid reason.

Top 7 Reasons Why Car Insurance Companies Deny Claims

Top 7 Reasons Why Car Insurance Companies Deny Claims

As you consider some important factors before buying car insurance, it is crucial to know the common reasons why insurance companies usually deny or reject claims. Knowing those reasons will help you to stay prepared beforehand. So, let’s get to know those reasons.

1. Coverage Does Not Apply

On the basis of the circumstances of the car accident, your insurance company can deny a claim if your coverage does not apply. For example, if the accident occurred due to the other driver’s fault, it is possible for them not to have mandatory liability coverage.

In addition to all these, insurance companies always look for loopholes within their contracts in order to deny the claim. Other times, you also might not be aware of any exclusions that are mentioned in the contract.

2. Lack Of Evidence

2. Lack Of Evidence

In order to get your car accident claim from your or the other driver’s insurance company always requires some basic evidence to prove the damages. Crash reports, medical records, witness statements, and other documents are needed to support your claim.

In order to pay out a single claim, the insurance company will not perform a thorough investigation. So, often the lack of required evidence causes the rejection of a claim. Here an experienced attorney will help you to get Atlanta Car Accident Reports and other necessary documents.

3. Policy Holder Is Not At Fault

After investigating the accident, and the claim matter, in case the insurance company finds out that their policyholder is not at fault, the insurance company will deny the claim immediately. In fact, insurance companies will always try to shift the liability to another party.

And this also includes shifting the blame to you. And in case you were involved in a multi-car accident, the company can shift the car accident liability to the other driver. Here, an experienced car accident attorney can always assist you in investigating the proper cause of the accident.

4. Pre Existing Injuries

In case your insurance claim also includes injuries, you should expect that the carrier will do whatever they can to avoid liability for them. On the basis of a pre-existing injury or injuries, the insurance company can deny a claim easily.

It is one of the most common and questionable tactics that they use. However, a previous injury should not be an evaluating factor when you are demanding your claim. For example, a car accident attorney will be able to prove that it is the accident that caused you extra trouble and suffering from your previous injury.

5. Your Contribution To The Accident

5. Your Contribution To The Accident

If the insurance company gets any evidence stating that you are partially or completely responsible for the accident, they will not approve your claim. Sometimes, it is actually a legitimate cause for the denial.

Many insurance companies also have several clauses mentioned in the contract that state, in case you are involved in some specific types of behavior, the claim will get rejected.

6. Failure To Get Medical Treatment After An Accident

All your medical reports and documents are crucial evidence that will support your insurance claim. So, it is also important to get some medical treatment as soon as possible after you have a car accident.

If you do not consult with a doctor after your car accident, the insurance company may deny the claim and consider your injuries are not serious enough. Sometimes the victim does not realize the injuries for several days after an accident, so consulting with a doctor is a must.

7. Overvalued Your Claim

The insurance claim can never exceed the policy limit. In addition to that in case, the insurance companies feel that you have added some unnecessary medical treatment or you have overvalued the injuries that you actually got; they can deny the claim anytime.

This is the time when getting an attorney becomes a must. And to get your claim, you have to fight with the insurance company.

Bonus: If you want to switch your car insurance provider then make sure to follow our precious guide to pave the proper way.

Final Talks

So, next time when you are filling your car accident claims, you have to make sure that everything is in the proper place. And you are not making any of these mistakes that I have mentioned earlier.

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