Auto insurance companies advertise trustworthiness and reliability, but far too often, insurers betray the trust of their policyholders by denying claims that should be covered and paid. If your claim was denied, you might be wondering how you will stay afloat financially despite the exorbitant medical bills and lost income.
If you disagree with the reason your claim was denied, you can appeal the decision through your insurer’s appeal process and in the court system if necessary. The first step in appealing the denial is to find out why your claim was not approved in the first place.
There are many reasons why an insurance company might deny a claim, and not all of them constitute bad faith; however, if you believe that your insurer acted unethically when investigating your claim or interpreting your policy, you may have grounds for an insurance bad faith lawsuit pursuant to South Carolina Code § 38-59-20.
Attorney Paul Hammack can evaluate your case and examine your insurance policies to determine whether your claim was unfairly denied by your insurance provider. Mr. Hammack is an accident lawyer in Greenville with more than 17 years of insurance coverage litigation experience. Call 864-326-3333 to schedule a free consultation at Hammack Law Firm.
Let’s examine nine common reasons why auto insurance companies deny claims:
You Violated a State Law
If you were driving illegally or breaking a law at the time of the collision, your insurance company may deny your claim. For example, your provider may consider denying your claim if:
- You were driving under the influence of drugs or alcohol at the time of the crash; or
- You did not have a valid driver’s license.
For a free legal consultation, call 864-740-8653
Your Claim Exceeds Your Policy Limits
When you purchase insurance, you must select the type and amount of coverage that will be included in your policy. Your claim may be denied if:
- You have already exhausted your policy limits;
- Your claim exceeds your policy limits; or
- Your insurance policy does not cover the type of occurrence or damages in your claim.
Other Reasons Why Insurance Providers Deny Claims
In a previous article, we discussed various mistakes that could harm your personal injury claim. Most of those mistakes are based on the fact that your insurance company will look for any possible reason to deny or undervalue your claim, so your statements and actions after a car accident will have a profound impact on your ability to recover compensation. For example, your insurance company may deny your claim if:
- You did not call the police after your collision; or
- You failed to seek medical treatment after the accident.
Your claim may also be denied if:
- You provided inaccurate information when purchasing insurance that materially affects the risk; or
- It was a single vehicle accident and you have no independent witnesses.
Although there are some legitimate reasons why insurance companies deny claims, it is important to remember that your insurance provider has financial incentive to deny or undervalue your claim. If you believe that you were unfairly treated by your insurer, turn to Hammack Law Firm to discuss your case.