When Your Car Insurance Company Is Not “On Your Side” After All
Most people believe that they are “in good hands” with their car insurance company and that all the premiums they pay each year mean the insurer is “on their side” – until their car accident claim is denied. The fact is that despite the catchy slogans, promises, and amusing spokespeople (or spokes-geckos) in their countless TV ads, car insurance companies can and will deny the claims of their own insureds after a car accident. This can leave drivers feeling abandoned by a company they rely on to protect and pay them after an accident.
If your car accident claim is denied by your Colorado auto insurer, there are still options available to get the coverage and compensation to which you are entitled.
The Claims Process
Among the many things you should do in the immediate aftermath of a car accident, informing your car insurer of the crash and filing a claim is a priority. The insurer will assign an adjuster or claims representative to handle your claim. That adjuster will gather information about the accident from you, police reports, and other sources regarding the facts and circumstances of the crash. They will analyze those facts in the context of your policy’s coverage. However, insurance companies are in the business of making money. What this means for you is that they will go through your claim with a fine-toothed comb to see if there is a basis to deny the claim, thus boosting their profits and making their shareholders happy.
If the adjuster or claims representative concludes that your policy did not cover your accident or the nature of the losses you incurred, you will receive a formal letter outlining the factors that led to the decision to deny your claim.
Related: What Damages Can You Claim After a Car Accident with Injuries?
Why Would Your Own Insurance Company Deny Your Car Accident Claim?
There are several possible reasons why your car accident claim is denied, including:
Your Policy Lapsed
One easily understandable reason why your car accident claim is denied by your insurance company is if your policy was not in effect at the time of the accident. Failure to pay your premiums or renew your coverage can result in your policy lapsing. This would effectively make you an uninsured driver without coverage for your claim. Not only could a lapse in coverage cause your insurance company to deny your claim, but you could also violate Colorado law requiring all drivers to maintain a minimum level of liability coverage.
Your Claim Fell Under One of Your Policy’s Exclusions
Car insurance policies contain many types of coverage. Some are mandatory, like the aforementioned minimum level of liability coverage, while others, such as comprehensive or collision coverage, may be optional. If your losses fall under a type of coverage you elected not to purchase with your policy, the insurer will deny your claim.
You Were In A Hit-and-Run or An Accident Involving an Uninsured Driver
While Colorado requires a minimal amount of liability coverage, uninsured/underinsured motorist (UIM) coverage is optional. Such coverage applies not only to accidents with uninsured drivers but also covers hit-and-run accidents. But, if you elect not to purchase UIM coverage, these accidents will fall outside your policy and the result will be that your car accident claim is denied.
What To Do After Your Car Accident Claim Is Denied
Just because your insurance company denies your car accident claim does not mean you are entirely out of luck. All insurers have a process through which an insured can appeal the denial of their claim. Your policy will detail the specifics of your insurer’s appeal process, especially the time limits they place on when you can file your appeal.
To give yourself the best chance of a successful appeal, hire an experienced Colorado Springs car accident lawyer. They can craft the strongest possible appeal letter by reviewing your accident, policy, and claim. With their experience and knowledge of how insurance companies make decisions, your chances of having a successful appeal – where the insurer reverses that initial denial and offers to cover your losses – dramatically increase.
King & Beaty: The Experienced Guide You Need
When your car accident claim is denied, or you want to pursue a claim for compensation against another driver who injured you, you need an experienced guide at your side. The Colorado Springs car accident lawyers at King & Beaty welcome the opportunity to assist you in getting the compensation you deserve and need to move forward with your life.
Please contact us today to arrange for your free initial consultation.
