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Most people understandably assume that when they pay for auto insurance, they will receive reimbursement or a payout if they need to file a claim. Unfortunately, this is not always true, and insurance companies regularly deny claims. Some denials are legitimate, but many are not, and you may need the assistance of an attorney to resolve a denial. Our New Jersey car accident attorney can help you understand if you have a valid claim and how to deal with or avoid a claim denial.
Common Reasons Why Insurance Companies Deny Claims
Insurance companies review claims in the context of a NJ claimant’s insurance coverage. A person’s coverage often determines whether an insurer will cover a claim. However, if your claim exceeds your coverage limits or you don’t have coverage for the type of claim at issue, you may find your claim denied. A common problem is when someone does not purchase collision coverage as part of their policy. So, although your insurer may cover some of the damages related to an auto accident, it wouldn’t cover the cost of repairs to your car.
Another reason an insurance company may deny a claim is because it believes a person was driving illegally or while violating the law. So, for example, if your underage child takes your car out for a joyride and damages it, your claim may be denied. Alternatively, your claim could be denied if you were driving under the influence of drugs or alcohol.
Insurance companies may also deny a claim based on their review of the circumstances surrounding the claim. For example, if you do not seek medical attention right after an accident, an insurer may believe the injuries did not result from the accident and deny a claim.
Resolving a Claim Denial or Dispute
Each insurance company has a process for handling claims, including a process by which you can dispute a denial or reduction of a claim. An attorney can assist you if you are facing this situation, and it is best not to go through this process alone. Although you may have been working with a claims adjuster or insurance representative, continuing to rely on their advice or guidance may not lead to the best outcome for you.
It can be difficult for a person to evaluate on their own if their claim was denied for a valid reason or if the denial was incorrect. An experienced attorney knows the difference. Furthermore, if you have suffered serious personal injury or injury to your property, you should seek legal representation as your claim may be more significant than you realize.
Consult With an Attorney
If you need to file a claim with an insurance company for a car accident or personal injury or are dealing with a claim denial, do not delay speaking with an attorney. You may need to file a lawsuit or have limited time to appeal a denial. You have two years to sue in New Jersey on a claim, with some exceptions. Contact our office today for a free consultation.