What to do if Your Claim is Denied
Why Would an Insurer Deny a Claim?
An insurance provider has to give a reason for denying a car insurance claim. If you are denied without explanation, contact the insurer to inquire why your claim was denied. The validity of denial is a crucial step before proceeding with your claim. Insurance providers may deny a valid claim in bad faith, which allows for other legal options.
Your claim may be denied by an insurer if:
- The policyholder is delinquent on its monthly premiums
- It believes its policyholder was not liable for the incident
- You are not covered under the policy
- You failed to seek medical help for injuries
- Your claim is outside of the party’s set policy limits
- You missed a reporting or filing deadline
- You violated the law at the time of the vehicle collision
- It believes your facts were misrepresented
If the insurer has a valid reason for denying the claim, you may have to seek recovery another way. If you or your legal representative believes that your claim was denied in bad faith, you may be able to file a civil claim against the insurer in addition to your original injury claim.
Is the Insurer Acting in Bad Faith?
Bad faith is when an insurance provider deals with a claim unfairly. Insurance companies may use unreasonable means to avoid paying claims. Many insurers delay payments, extend investigations and deny valid claims. Bad faith could lead to legal action against the insurance provider. If your personal injury attorney believes that the insurance company acted in bad faith, you could pursue a suit for damages.
You could possibly recover additional compensation in addition to your original accident damages. Other penalties could be applied by the courts. These are intended to hold the insurer accountable and prevent similar behavior in the future.
What Should I Do Next?
You have the right to call the insurance provider and discuss why your claim was denied. You can argue that mistakes were made or provide further evidence that may change the company’s decision. It is possible that the insurer will reverse its decision and negotiate a settlement for the claim. You may enlist the aid of a New Mexico personal injury lawyer to help you appeal to the insurance company’s denial. The appeal will request that an unbiased third-party review the case to determine if the insurer was justified in denying the claim. A successful claim could end in a settlement for your damages.
New Mexico Auto Accidents
Car crashes can happen at any time. It only takes a few seconds for your life to be seriously changed due to a car accident. Car crashes injury millions each year in the United States.
There are over 6 million collisions reported each year. These crashes vary in severity, but victims often sustain significant damages. In some cases, injured parties are able to contact a trained New Mexico car crash lawyer to regain lost compensation after a crash.
The legal team at Will Ferguson & Associates is here to help you protect your legal rights. We have recovered multi-million-dollar settlements for countless clients in past cases. Give us a call at (505) 243-5566 if you think you have grounds for a claim or are experiencing difficulties with the insurance company.