10 Reasons the Car Insurance Company Denied Your Claim (and What to Do About It)

Every day in Texas, motorists are denied car insurance claims even though they’re not actually liable for the accident they were involved in. This can be due to any number of factors. Some are legitimate, some not so much—but the bottom line is that it’s extremely frustrating and can lead to serious medical, emotional, and financial issues.

In this blog, we examine 10 reasons a car insurance company might attempt to deny your claim, how you can avoid these denials, and how an experienced greater Katy area personal injury lawyer can help you resolve the dispute and get you the compensation you deserve.

Can a Car Insurance Company Deny an Insurance Claim?

Yes—and they do, every day.

Sometimes, the reasons they deny claims are valid and there’s nothing you can do. Sometimes, the reasons are bogus justifications that prioritize saving the insurance company money rather than protecting their insured.

If you’ve filed a claim that’s been denied, you deserve to understand why so you can decide what to do next.

10 Reasons Why the Car Insurance Company Might Deny Your Insurance Claim

1. Bad-Faith Reasons

A bad faith claim denial is what happens when an insurance company denies a valid claim for reasons that are not valid, unclear, or even unethical. If the company won’t (or can’t) give you a good reason for why they denied your insurance claim, it could be in bad faith. In these situations, an experienced car accident attorney is your best resource for holding the insurance company accountable and getting the compensation you need to cover your bills and other costs.

2. You Waited to Notify the Insurance Company After a Crash

This one is tricky—if you wait to let the insurance company know you were in a crash, this can jeopardize your claim.

It’s not uncommon for insurance companies to say they weren’t able to assess your claim while the evidence was “valid,” which can be true in some cases. However, it can also be used as an excuse to get out of paying injured people the compensation they need. If you’re skeptical about the insurance company saying you waited too long to file a claim, don’t wait to call a lawyer who can help.

3. You Don’t Have the Right Type of Insurance Coverage

Every auto policy has different types of coverage, which might include things like comprehensive coverage, property damage, or collision coverage. Depending on the nature of your claim and the type of policy you have, your claim might not be covered by your own insurance policy.

However, some of the language of these policies can be quite misleading, and the person handling your case (called an insurance adjuster) might not be 100% forthcoming about what your options are. If something basic is suddenly not covered by your policy, it’s time to consider calling an attorney who can help you uncover the truth.

4. You Obtained Insurance Under False Pretenses

If you apply for coverage with false information, your insurance is not valid, and you will likely be faced with to serious fines—and be on the hook for any injuries or damages you cause.

However, if the insurance company wants to find a way to get out of paying a claim, they will. Claiming your insurance was obtained under false pretenses is one tactic they might use, so if this is the line you’re getting from your claims adjuster, know that you still have options.

5. The Insurance Company Says You’re Responsible for the Crash

If the insurance companies can’t agree on who caused the wreck or is blaming you for causing the crash, your compensation could be substantially delayed (or you might not get compensated at all). This is a common tactic to get out of making fair payments if there was any question about liability in a crash.

Working with an experienced car accident attorney with quality investigators might help you establish liability and resolve your claim.

6. Your Insurance Policy Had Lapsed

If you didn’t renew your car insurance policy, you are no longer carrying valid coverage. And if you are not insured at the time of an accident, you could be on the hook for all injuries and damages, regardless of whether you were at fault for the crash. Not only that, but you’ll likely be heavily fined for not having active coverage while on the road. Your best bet is to pay your policy term in full or opt-in for auto payments to avoid any lapse in coverage.

7. There Isn’t Enough Insurance Coverage to Cover Your Costs

Having a claim that’s worth more than your policy limits isn’t necessarily grounds for an insurance claim denial, but you certainly won’t get all your costs covered if the policy maximums are low.

There can be a few ways around this. The first is to be prepared by purchasing your own Uninsured/Underinsured Motorists policy (UM/UIM). The other is to contact an attorney who can identify every possible source of compensation. For instance, if the driver who hurt you was over-served at a bar, you may be able to hold that establishment accountable.

8. The Insurance Adjuster Is Stalling, Rather Than Giving You an Answer Outright

Again, this is not necessarily an outright denial, but it is a tactic that many car insurance companies use to get people to drop or abandon a valid claim to avoid paying it out. Most of the time, these adjusters know that the claimants don’t have the experience or know-how to negotiate their insurance claims. They’re also betting on people being too exasperated by the process to feel like fighting for very long—especially if they’re dealing with injuries, missed work, and more.

In these situations, consider hiring a car crash lawyer who can handle the insurance company negotiations and communications so you can focus on healing and getting your life back to normal.

9. You Were Doing Something Illegal at the Time of the Crash

If you were engaged in any activity that is illegal, prohibited by your policy, or that would otherwise void your coverage (e.g., driving drunk), you likely won’t have a valid claim and won’t be entitled to compensation.

10. You Don’t Have a Diagnosed Injury

If you’re filing a claim to cover the costs of your medical bills and injury-related costs, you’ll need proof that you’re hurt. Medical bills, doctor’s notes, and other documentation is the most straightforward way to prove your case. Without this proof, you’ll have a hard time filing a successful insurance claim.

If you’ve been in any type of accident, it’s always a good idea to see a doctor who can identify injuries early. Not only does this help with the claims process, but it saves you time, money, and pain down the road.

How to Appeal Your Car Insurance Claim Denial

As we’ve discussed, appealing an unfair denial can be complicated, but not impossible—especially if you have an experienced attorney on your side who knows how to handle the insurance companies.

If your claim has been denied, don’t wait to contact a greater Katy area car accident lawyer. Our team has experience successfully handling all types of car crash cases and the insurance negotiations that inevitably follow.

Contact the Attorneys at Will Adams Law Firm Today

If your insurance company has denied your car accident claim, don’t wait to contact the skilled and experienced attorneys at Will Adams Law Firm. We offer complimentary consultations where we hear the details of your situation and help you decide what to do next.

To schedule a meeting with our team, please call (281) 371-6345 or complete this brief form.

The content provided here is for informational purposes only and should not be construed as legal advice on any subject.