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Auto Insurance Claims Denial

Auto insurance claims denial is not a subject that anybody finds particularly appealing. Yet it is important to think about, because claims denial does happen from time to time. When you enter into a relationship with your auto insurer, you think of your interaction as a covenant or contract. But this contract does not obligate the insurer to pay out every claim on a no questions asked basis. Although denied claims are in the vast minority overall, they are important to know and understand nonetheless, so that you are not surprised and unable to respond if your claim is denied.

Motorists Rely on Insurance Companies

When we purchase our auto policies, we rely on our insurers to practice good faith and to be our advocate when the time comes for claims and things of that nature. Motorists purchase car insurance as a mode of protection. We want to make sure we are covered when we have a car accident, if our vehicle is stolen or vandalized, or when other unexpected events take place. We buy policies for protection from the cost of liability, and from the expense of dealing with our own injuries as well. And in most cases, when things go as expected in the claims process, this is exactly how the process plays out in reality. But there are times when things don't go according to plan. When an unexpected auto emergency is followed by an equally unexpected claims denial, you have to know what to do next and how to deal with the situation.

As motorists, many of us tend to regard auto insurance companies as greedy or selfish, serving their own manipulative means with the way they do business. This is especially true when claims get denied for one reason or another. We think that these so called rich corporations go out of their way to pick on us, the common people. But this is a short sighted way of looking at things based on a limited perspective.

Insurance Fraud All Too Common

Unfortunately, auto insurance fraud is an all too common occurrence. And as the years pass, it becomes even more common and more sophisticated in certain pockets of the country. It seems that some people will do whatever it takes to avoid actually having to work for a living. So, they try to defeat the system, and in doing so, make our rates higher and make it more difficult for honest people to file legitimate claims.

Auto insurers are wary of claims more than they have ever been in the past, and for good reason. The increase in expensive insurance fraud cases has made them ever more suspicious of even the most innocuous of claims activities. When we think of the situation from the perspective of the providers and the people who work for them, it is much easier to understand why they might give us a bit more trouble than we would like with our claims. One of the major reasons why they are tough on us as claimants is that it is a weeding out process. By denying claims, they hope to scare off those among the driving population who are just trying to pull a fast one and score a few bucks.

Avoid Having Your Claim Denied

There are some things we can do as motorists and auto insurance claimants to avoid the hassle of having our claims denied when it becomes necessary to file them with our providers. When you have a car accident, you need to take advantage of every opportunity to gather as much data on the scene as you possibly can. If you are not injured too badly, take pictures of all the cars involved right on the scene. Get as much evidence together as you possibly can to point to the credibility of your claim. Stay around and wait for the police and offer them a statement. Do not under any circumstances admit responsibility. Just tell them what happened and let them sort out blame along with the insurance adjusters.

If there are any eyewitnesses to the accident who are willing to give their account of what happened, get their contact information as well as that of any other vehicles involved in the collision. Get on the line with your insurance company as soon as you have contacted 911 (if someone was critically injured) and the local law enforcement authorities.

It is still possible that your claim could be denied, even if you have eyewitness accounts and police reports to give your insurer. There is no completely fool proof system. But the more information you can gather, the better off you will be. And all this data will also help you in the event that your case ends up in dispute arbitration.


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