November 10, 2022
Top 5 Reasons Why Insurance Companies Deny Claims￼
The unknown future we face after an auto accident seems to become clearer when the other driver hands over their insurance policy info. Surely, the insurance will cover everything, right?
In many cases, yes. However, there are some cases where an insurance company denies a claim.
Why Do Insurance Companies Deny Claims?
First and foremost, the job of an insurance company (like any company) is to make money. So, while they offer a product meant to protect people in the event of something catastrophic, they have rules that allow them to wiggle out of payments if needed.
1. Lapsed Policy
The other driver might have handed over their insurance info, but that does not mean the policy was active. Whether intentionally or unintentionally, if the other driver has not paid their premiums, their policy is not active and their insurance company will not pay.
This can also happen if you forget to pay for your policy. Without an active policy, you cannot rely on your insurance to repair any damages to your car.
2. Driver Failed to Report in Time
Illinois law gives you two years to file an insurance claim from the date of the accident. However, many insurers require accidents to be reported as soon as possible, usually within 30 days. After that window, your claim could be denied, and you might not be able to seek compensation from either another driver’s insurance or your own. You also cannot file a lawsuit seeking damages.
This window exists because some damages might not become apparent until later. This could include vehicular abnormalities that can be traced back to the accident and injuries that seem minimal now but become problematic later.
3. Insufficient Coverage
Auto insurance policies have coverage and payment limits that depend on the type of policy a buyer chooses. If an accident results in higher repair costs than the policy limit, then the insurance will only pay to that point.
If a driver only has liability instead of full coverage and they are involved in a single vehicle accident, their insurance will not cover damages. If they are in an accident with another driver, their policy only covers the other driver.
4. Liability Dispute
In almost all auto accidents, one or multiple parties are found to be at fault, meaning their actions caused the accident. Law enforcement can do this at the scene or later when claims adjusters investigate.
However, the adjusters might decide that their client is not at fault and refuse to pay the total amount or any amount at all. You can file an appeal and let the case be turned over to a new adjuster in the hopes of them finding a different result, but after that, you will probably need to take the other driver and their insurance to court.
5. Excluded Driver
A driver’s insurance policy covers their policyholder, dependents (like children), and the associated vehicles. If an accident involves one but not the other(s), the insurance can deny the claim.
So, if someone is driving someone else’s car and they cause an accident, they may not be covered. Plus, the insurance of the vehicle owner can also deny the claim.
Contact a Claims Lawyer in Illinois Today
Do not let an insurance company find a loophole to deny you compensation for an accident. If you are looking to file an appeal for a claim or take another driver and their insurance to court, contact Staver Accident Injury Lawyers, P.C.
The attorneys at Staver Accident Injury Lawyers, P.C. know how to fight insurance companies to get fair settlements for their clients. Call (312) 236-2900 for a free consultation, or send us a message.