Most people never expect their car accident insurance claim to end in denial, yet it happens more than you may think. Sometimes, insurers have cause to deny such claims. Other times, however, denials can arise in bad faith.
If you receive a claim denial after a car accident, can you tell if the rejection arose for legitimate reasons? It is critical to know this so that you can ensure you get the injury compensation you need after a crash.
Examples of legitimate claim denials
Before you can recognize improper insurance company rejections, you need to understand when they have a right to deny claims. Examples of reasons for valid denials include the following:
- Your policy has elapsed for nonpayment
- The policy does not cover injuries or property damage
- You gave false or incomplete information in your accident claim
- The accident occurred from your wrongdoing (drunk or distracted driving, etc.)
These are just a few examples, but they help you understand the business and technical side of the insurance industry.
Bad faith denials look different
The immediate rejection of an insurance claim often indicates bad faith. Legally, insurers must investigate car accidents before deciding how to address claims. Other acts to be wary of include:
- Failure to pay claims promptly
- Misrepresentation of policy terms
- Low settlement offers (compared with policy coverage)
- Failure to disclose all policy provisions, terms and exclusions
Unfortunately, many victims give up after receiving a claim denial. Losing property damage compensation is bad enough, but you cannot afford to lose restitution for your injuries. It usually takes every financial resource available to address injury treatment costs, especially when severe.
Since not all insurer rejections are in bad faith, learn about Texas accident and injury compensation laws. The insight you gain improves your odds of identifying mistreatment from insurance companies.