It is natural to feel like your car accident claim in Wilmington, NC is over if you receive a denial notice from a car insurance company. It is crucial, however, that you do not give up. Insurance companies often initially deny accident claims in the hopes that the victim will accept the rejection without fighting back. In reality, you have the right to counter and appeal the denial.
If you have received a denial notice from an insurance company after a car accident, schedule your free consultation to discuss your legal options today.
Understand the Reason for the Rejection
Insurance companies may deny claims for many reasons. They are legally required to give the reason for their rejection in the denial letter. Your first step is to read the notice sent to you to understand why your initial claim was unsuccessful.
Common reasons given by insurers include:
- Late filing or missed deadlines
- Coverage and policy exclusions
- Not enough evidence or information
- Liability dispute
- Failure to mitigate damages
- Pre-existing injuries
- Contributory negligence
You may have simply missed a small detail, or the insurance company may need more information from you to process your claim. The denial could be a quick fix that you can handle on your own to continue the claim.
Request a Review
Gather evidence that supports the claim you are making. Then, contact the insurance company to request an internal review. Your claim will be reassigned to a different claims adjuster, who will take another look.
If the insurance company still stands by its original decision, you can request an external review by an independent third party, such as the NC Department of Insurance. This is a good option if you have a regulatory complaint against the insurer, such as the belief that the insurance company isn’t upholding its end of your contract.
Appeal the Denial
If a review does not result in the case outcome you deserve, your next option is filing a formal appeal of the insurance company’s decision. This involves submitting a written appeal letter to the insurance company, which will likely have its own procedure for this process. Follow the insurance provider’s steps for submitting your appeal. You should accompany your letter with relevant evidence, medical records, photos and supporting documentation.
Consider a Bad Faith Claim
Sometimes, an insurance company repeatedly denies a car accident claim because it is acting in bad faith. This means the insurer is violating its legal obligation to process all claims in an honest and good-faith attempt to resolve them according to the circumstances and the terms of the policy.
An insurer may reject a claim in bad faith to protect itself from having to pay out a large settlement. Signs of bad faith can include failing to respond to the initial claim promptly, drawing out the investigation, failing to investigate thoroughly, failing to clearly explain the reason for the denial and refusing to offer a reasonable settlement.
Evidence of insurance bad faith during your North Carolina car accident claim could give you the right to file an additional claim or lawsuit against the insurance company itself. Consult with a car accident attorney in this situation for legal representation. Proving bad faith against an insurance corporation can be difficult.
Our experienced lawyers at Shipman Wright & Moore, LLP can help you hold an insurer accountable for rejecting your claim and delaying your payout without cause. If necessary, your lawyer can represent you in court to demand justice and seek fair compensation.