When you make an insurance claim – whether with your own insurer or the at-fault driver’s liability insurance – you expect the insurance company to treat you fairly and use the premiums they have received to pay legitimate claims.
When an insurance company denies your claim, you are left wondering how you will take on medical bills, compensate for lost income, and get your life back on track after it has been derailed due to someone else’s negligence. An experienced car accident lawyer can help you decide what to do next.
Keep reading to learn the next steps after a car insurance claim denial.
Understand Why Your Claim Was Denied
The first step is to carefully review the insurance claim denial letter to determine the reason or reasons your claim was denied. Some possibilities could include:
- The policy lapsed – It’s possible that the at-fault driver’s insurance was not in effect at the time of the collision. This can happen if the driver failed to pay their premiums or renew their coverage, making them an uninsured driver. If this is the case, you’ll have to explore other options for recovery.
- The accident was excluded from coverage – Even if the driver had valid insurance, the accident could have fallen under an exclusion. For example, an unpermitted driver could have caused the crash.
- You were injured in a hit-and-run accident – If you were injured in a hit-and-run accident and did not have uninsured/underinsured motorist (UI/UIM) coverage, you may not have insurance to cover your injuries because they fall outside your policy.
- It is a blanket denial – Your denial letter may not give a reason for the denial, may point to language that is not in the policy, or may use standard reasons for a denial that could indicate a real investigation did not occur. These results could indicate bad faith insurance tactics.
Learn About Your Legal Options
You may have a few options after your car accident claim is denied, including:
Ask for a Review or Appeal the Decision
The insurance denial letter or your insurance contract may provide details about how you can request an internal review or appeal the decision to deny your claim. This may require you to complete a particular form and provide additional details about the accident.
You might be subject to tight timelines, so it’s crucial that you work with an experienced attorney who can take prompt legal action to protect your rights and make a stronger appeal by reviewing the accident, your policy, and your claim.
File a Bad Faith Insurance Claim
Colorado law protects you from bad faith insurance practices, including unreasonable insurance claim denials. Your own insurance company is contractually obligated to handle your claims in good faith.
If your insurance company violates this obligation, you can report it to the Colorado Division of Insurance and/or file a case in court. If the court finds that the insurance company has acted in bad faith, it may be required to pay your claim, your legal costs, and additional penalties.
Sue the At-Fault Driver
Even if the insurance company denied your claim, that does not mean that the accident is your fault or that you should be responsible for the damages. You may be able to file a personal injury lawsuit against the at-fault driver and pursue their personal assets for compensation.
Contact Our Colorado Car Accident Attorneys
If your insurance claim has been denied, you need an experienced and knowledgeable car accident lawyer. Contact Dulin McQuinn Young for your free, no-obligation case review.