5 Reasons Your Accident Insurance Claim Was Denied
Nearly 60,000 people in Arkansas were involved in car accidents in 2012 alone. Knowing what insurance adjusters are looking for when considering your car accident insurance claim will better prepare you should you experience a collision caused by the fault of another. Here are five common reasons why insurance adjusters will deny your claim.
1. The Insurance Policy Has Expired
This one is simple – if the at-fault driver’s policy has expired, the claim against the at-fault driver’s insurance company will be denied right away. This can happen inadvertently; so, be sure to know when your own policy expires and give yourself plenty of time to renew every year. When the at-fault driver has let his insurance policy lapse, you need to be able to turn to your own policy – to make an uninsured motorist claim. This is one reason you need to make sure you have purchased “full coverage.”
2. Your Plan Doesn’t Have Full Coverage
In Arkansas, an automobile owner is allowed to reject full coverage. The bare minimum car insurance plan that the law requires you to carry is a liability-only plan, which means if you are at fault, your insurance will cover the other driver who wasn’t at fault, but you will have nothing to pay you for your own expenses incurred and losses sustained. Full coverage includes liability insurance (that protects the other driver when you are at fault), Personal Injury Protection (that provides medical payment insurance to pay your medical bills and also provides some wage-loss protection), uninsured motorist coverage (which applies when the other driver is at fault but has no liability insurance), and underinsured motorist protection (which applies when the other driver is at fault but does not have enough liability insurance to pay your damages). You might have selected a liability plan because it was the most affordable, but make sure you know what exactly is at risk when you choose the cheapest option.
3. You Didn’t Report the Incident on Time
Don’t wait to report an incident to your insurance company. They have the right to argue that they didn’t have enough time to research a claim if a significant amount of time has passed since the accident.
4. Liability Was Disputed
An insurance adjuster could reject your claim because there’s been a dispute about who was at fault. They could also disagree with the damages you’re claiming. To avoid a dispute with your insurance company, a police report and photos of the scene and damage and witness testimonials can help.
5. You Were Driving Under the Influence
If you were under the influence of drugs or alcohol and caused an accident, your insurance company will not cover expenses caused by your negligence.
For the most efficient outcome with your insurance company, take photos at the scene, get a police report and file your claim quickly. If your claim is denied and you’re unhappy with the insurance company’s decision, request a written explanation for the denial and contact an Arkansas car accident lawyer to review your options for covering expenses from the accident.