How to Appeal a Denied Auto Insurance Claim?

When an insurance claim gets denied, you may feel frustrated and stressed, especially if you are still dealing with medical bills and other costs related to the accident. Fortunately, if the insurance company denies your car accident claim, you can fight back.

A settlement offer letter proposes a resolution to a car accident dispute. The letter usually outlines the terms of the proposed settlement, including any financial compensation involved.

The settlement offer letter is typically the first step in negotiations between the parties involved. If both sides can agree on the terms of the settlement, then a formal agreement is drafted and executed. If not, the negotiation process continues until an agreement is reached or until one party decides to walk away from the negotiation.

If you receive a settlement offer letter, it means that the insurance company has decided to offer you a certain amount of money to settle your personal injury claim. While it is up to you whether or not to accept the offer, you should keep a few things in mind before making a decision.

First, you should make sure that you understand all the terms of the offer. The insurance company will often include a release of liability. This means you give up your right to sue the at-fault party if you accept the settlement. For this reason, any offer you agree to must adequately cover all of your medical expenses and any lost wages from time missed at work.

Once you have reviewed the terms of the offer, you can either accept or reject it. If you decide to accept the offer, you will need to sign and return the release of liability. Once the insurance company receives the signed release, they will send you a check for the settlement amount.

If you reject the offer, you can continue negotiating with the insurance company or file a personal injury lawsuit. An experienced Arkansas car accident attorney can help you determine whether or not filing a lawsuit is in your best interest.

There are numerous reasons why a legitimate insurance claim gets denied. Understanding those reasons can give you insight into how to fight these denials.

Some of the top reasons why insurance companies reject most claims include the following:

Insurance Policy Has Expired

This one is simple – if the at-fault driver’s policy has expired, the insurance company will deny the claim against the at-fault driver’s insurance policy. When the at-fault driver lets their insurance policy lapse, you can make an uninsured motorist claim through your policy. This is one reason you must ensure you have purchased a “full coverage” policy.

Policy Exclusions

Policy exclusions are one of the most common reasons for a car accident claim denial. Policy exclusions are clauses in your insurance policy that specifically exclude certain types of accidents or damages from being covered.

For example, if you have a policy exclusion for “acts of God,” your insurer can deny your claim if they determine that the accident was caused by something beyond your control, like severe weather. Other standard policy exclusions include those for pre-existing damage, alcohol-related accidents, and accidents that occur outside of the country.

If your insurance company denies your claim due to a policy exclusion, you may still be able to appeal the decision.

Your Plan Doesn’t Have Full Coverage

In Arkansas, an automobile owner is allowed to reject full coverage. The law only requires drivers to carry liability. 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 expenses incurred and sustained losses.

For this reason, drivers should purchase a more comprehensive plan whenever possible. This comprehensive plan might include full coverage, Personal Injury Protection (PIP), or uninsured motorist coverage.

Full coverage includes liability insurance that protects the other driver when you are at fault. Personal Injury Protection provides medical payment insurance to pay your medical bills and also provides some wage-loss protection. Uninsured motorist coverage applies when the other driver is at fault but has no liability insurance.

You might have selected a liability plan because it was the most affordable, but make sure you know what is at risk when you choose the cheapest option.

Uninsured Motorist Accidents

Uninsured Motorist Protection (UM) applies when the other driver is at-fault but does not carry insurance at all. Underinsured Motorist Protection (UIM) applies when a driver carries the bare minimum insurance, and this isn’t enough to pay your damages.

If you get into an accident with an uninsured motorist, the insurance company will deny your claim if you don’t have a UM/UIM policy.

You Committed a Crime

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. If you committed a crime at the time of the accident, the insurance company might deny your claim due to your negligence.

Your Driver’s License is Invalid

If you’re involved in a car accident and don’t have a valid driver’s license, your insurance company may deny your claim. This is because they may view you as a high-risk driver.

There are a few ways to avoid this situation. First, make sure that you always have a valid driver’s license. If your license has expired, make sure to renew it before driving. Secondly, if you’re involved in an accident, be honest with your insurance company about your status. They may be more likely to work with you if you’re upfront about the situation.

You’re an Excluded Driver on the Policy

Some insurance policies name specific drivers who are excluded from coverage. This means that the policy will not cover damages caused by those drivers. The insurance company will deny the claim if you’re an excluded driver on a policy.

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.

There is a Liability Dispute

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, photos of the scene, damage, and witness testimonials can help.

Bad Faith

Bad faith in the insurance industry can result in a car accident claim getting denied. This is because insurance companies must act in good faith when handling claims. If an insurance company acts in bad faith, it can face liability for damages.

There are several ways that bad faith can result in claim denial. For instance, an insurance company may deny a claim without investigating it. Or, an insurance company may refuse to pay a claim without giving a reason. Additionally, an insurance company may try to delay the payment of a claim.

If you received a claim denial after a car accident, you might have grounds for a bad faith claim against your insurance company. An experienced Arkansas personal injury attorney can help you understand your legal options.

If you are appealing a car insurance claim denial, there are some specific steps you will need to take. The appeals process is often difficult and time-consuming. To avoid unnecessary delays, it is best to have this process handled by an experienced Arkansas car accident attorney.

Your attorney will go to work appealing your claim denial while you focus on your recovery and on rebuilding your life after a car accident. To do this, your attorney will: