When you file an insurance claim after a personal injury accident, you expect to receive your compensation and move on. But the process isn’t always this simple.
Insurance companies reject personal injury claims for numerous reasons. They may request more information about your claim before they can make a decision, or they may deny it altogether, barring you from gaining compensation through this process.
Understanding why personal injury claims are rejected — and how to avoid it — can streamline and simplify your insurance process. Learn more from an experienced personal injury lawyer in Mobile, AL.
When Are Insurance Companies Allowed To Reject Claims?
Is it lawful for insurance companies to reject claims? Yes — as long as they have a valid reason for doing so.
Insurance companies must investigate all claims to ensure that they meet the terms of the policy. They have the right to deny a claim that does not fall under the policy’s covered items. Sometimes, an insurer may reject a claim, then eventually accept it once you provide further information.
But insurers occasionally reject claims under “bad faith” practices. This occurs when an insurance company intentionally violates its contractual obligations to a policyholder, such as by:
- Rejecting a valid claim
- Delaying a claim beyond a reasonable timeline
- Offering less money than a claim is worth
- Falsifying information to justify the claim denial
Common Reasons for Personal Injury Claim Rejections
Outside of bad faith insurance practices, an insurance company may reject a claim for several valid reasons. When an insurer rejects your claim, it will typically send you a written notice of the rejection along with the reason behind it. These are a few common reasons insurers reject personal injury claims:
- Insufficient evidence: An insurance company may need more evidence before it can agree that its policyholder was responsible for your accident or that the accident falls under the policy terms. Providing further evidence may increase your chances of approval.
- Disputed liability: An insurance adjuster may deny your claim if they believe their policyholder was not responsible for the accident or that you were even 1% responsible (under Alabama’s contributory negligence doctrine).
- Policy exclusions: An insurance policy may exclude certain types of personal injury accidents. For example, some policies exclude intentional acts. They may also exclude accidents that happened on watercraft or aircraft.
Your personal injury attorney can review your claim denial notice and determine what information the insurer needs to approve your claim.
How To Avoid an Insurance Claim Rejection and Increase Your Chances of Securing Compensation
Insurance claim rejections can be a huge headache as you attempt to seek compensation for your accident injuries.
Knowing how to avoid denials of personal injury claims can help you streamline your compensation and increase your chances of securing adequate compensation to cover all your economic and non-economic damages. These are a few tips you can follow to avoid claim rejections.
File Your Claim As Soon As Possible
Plan to file your insurance claim as soon as you can. Doing so can help you avoid missing any deadlines the policy has set. You’ll also have access to fresh evidence that you can use to support your claim.
You may have a more challenging time proving the policyholder’s negligence weeks or months after the accident, when your injuries have begun to heal and the wreckage from the accident has been cleared away.
Provide Substantial Evidence To Support Your Claim
The strongest personal injury claims have extensive evidence to back them up. You may want to provide all of the following evidence with your claim, if you can:
- Copies of all medical records relating to your injuries from the accident
- Photos and videos of the accident scene
- Repair estimates for any physical damage
- Testimonies from witnesses to the accident
Follow Up With the Insurer About If They Need More Information
If you haven’t heard back from the insurance adjuster, you may want to reach out and request an update about your claim. Ask if the insurer needs any additional information to approve the claim. This may prompt them to investigate the claim further rather than simply rejecting it.
All of the information in these sections may depend on whether you’re dealing with your insurance company, another party’s insurance company, and what the language in the policy actually says.
Bolster Your Personal Injury Claim With Jackson & Foster Law
One of the strongest ways to avoid personal injury claim denials is to hire skilled legal representation to support your claim. An experienced personal injury attorney can take care of the claims process for you while you focus on your physical recovery. They can help you seek special or general damages and maximize your payout while handling all communications with the insurer and the at-fault party.
Do you need assistance navigating personal injury claims? Contact Jackson & Foster Law today at 251-433-6699 for a consultation in Mobile, AL.
