Is an Insurance Company Required to Provide Me with an Explanation of Claim Denial?

There is nothing worse than facing a serious car accident and needing to make a claim, that is, until you receive a letter saying that your claim has been denied through your insurance provider. If you have been denied compensation through the claims process then your insurance company must provide you with an explanation as to why. You have the right to not only know what the problem is but also dispute the denial. This is a right that all insurance policy holders should take.

Car Insurance Claim Denials

An insurance provider is required by law to send you a written explanation of the denial. There are several reasons why your car insurance claim may have been denied but if you are not aware of what is wrong then you cannot take the first step to correct it. Some of the most common reasons for denial include mistakes in paperwork, withholding information from the company and coverage exclusions. Even simple mistakes such as a misspelt address or missing letter on your driver's license can make all the difference to your claims denial.

Once you receive the written explanation of the denial you can get to work. You will probably have a deadline to respond to the denial and dispute the decision. Check that all information is correct and make copies of the written letter for reference. If you know why the claim is denied then contact your insurance agency and point out specific details where they have it wrong. Providers do make mistakes and if this is the case during your car coverage insurance damage, then let them know.

When making an appeal, do it in writing. That way you can keep copies of the documentation as evidence. If the claim is very serious you may need to get the assistance of a lawyer or an appraiser to evaluate the vehicle. You should document all phone calls and conversations you have had with your insurance company about the claim and the denial. The more information you have, the better prepared you will be to fight back against a denial and have your claim approved the second time around.

Avoid Getting an Insurance Claim Denied

The best way to avoid getting denied is to make sure you have adequate coverage and enough information in the first place. When you are looking for your car insurance make sure you understand fully what is included on the policy and what is not. That way, if you do need to make a claim, you will know exactly what you are entitled to.

Second of all, if you are in an accident you need to get as many details as possible. After a serious car accident your head is most likely not in the best place and you probably have a million things going on. However, take a deep breath and try to get your head around what has happened. It is a good idea to print out an 'insurance claim' sheet and keep it in the car in the event of an accident. That way you can fill out all the pieces of information on the spot while you have the other drivers, key witnesses and police officers on the site. You can print a few extras out from the website of your insurance provider.

Insurance denials do happen. Some providers are known for their poor insurance company claim explanations and service. When you are looking for car insurance, consider the reputation of the company in terms of their claims process. Read reviews to see what providers are known for claim denials and stay away from these companies.

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