When you purchased your auto insurance coverage, you may not have given it much consideration. You may have accepted whatever suggestions the agent made, especially if you needed coverage immediately to purchase a new vehicle. If the monthly premiums came out of your checking account, you never gave it another thought.
On the other hand, you may be the kind of person who shopped carefully, compared prices and opted for the best coverage. You read the policy carefully, noting the exclusions, and you asked your agent questions about anything you didn't understand. You are a rare breed, but your diligence paid off when you had an accident. At least you thought it did until your received the claim rejection in the mail.
Why was my claim rejected?
The most common reason why an insurance company will deny a claim is because the policyholder does not have full coverage. If your policy does not have comprehensive and collision and you have an accident for which you are at fault, the policy may not cover your own damages and injuries, only those of the other driver.
This happens often because policyholders do not understand their coverage. Insurance policies often carry exclusions, such as if you have an accident while using your car for work. A frequent review of your policy can prevent denial for such claims. It will also ensure that your claim will not be delayed because of a clerical error on your policy.
Some other common reasons for the denial of an insurance claim include the following:
- You were impaired by drugs or alcohol at the time of the accident.
- Fault for the accident is in dispute.
- You missed the deadline for reporting your accident.
- You did not seek medical attention after the accident.
- Your claim is fraudulent.
- You failed to add a new car to your policy.
- You forgot to pay your premium on time.
However, if you have been diligent about understanding your policy and keeping your premiums up to date, you may be dealing with an insurance company that is acting in bad faith. Insurance companies are businesses, and their objective is to make money. If they earn that money by wrongly denying a claim which your policy covers, you have a right to seek redress.
Dealing with insurance companies in Washington can be stressful, and some adjusters may count on you becoming frustrated and giving up. You deserve better, and the assistance of an attorney who has experience dealing with bad faith insurance issues can advocate for your cause.