Auto insurance companies are very helpful in protecting you and your assets when accidents occur, but it must always be remembered that insurance companies are businesses, and their primary purpose is to make a profit for their shareholders. Insurance companies have a vested interest in denying auto accident personal injury claims, and they will do everything they can to avoid paying for personal injuries and other damages. Because of this, it is important to consult Orlando auto accident attorneys experienced in personal injury law before discussing the details with your insurance company. In some cases claims are denied in “bad faith”. Read our article on how bad faith can affect my personal injury claim for more information on that topic.
Auto Accident Personal Injury Claims May Be Denied
Even if your auto accident personal injury claim seems cut and dry, insurance companies may deny it for any one of several reasons. Some of the top reasons for a claim denial are as follows:
The insurance company suspects fraud.
Unsavory characters figured out a long time ago that it was possible to fake car crashes and injuries in order to pocket the insurance money. However, insurance companies have spent a lot of time and effort fighting these fraudulent claims, and they are very good at what they do. If the insurance company suspects fraud, your claim will be denied and investigated further.
The injured party is not covered by the insurance policy.
Very few insurance policies cover every individual in the car, especially when it comes to drivers. If you are driving someone else’s car and do not have your own insurance, you may not be covered by the owner’s policy unless he or she has paid extra for additional drivers.
The coverage limit has been reached.
Insurance policies do not provide unlimited coverage. Florida law only requires $10,000 worth of coverage per individual and $20,000 per accident. Amounts over the policy limit will not be paid.
A crime was committed by the driver before or during the accident.
Most insurance policies have a clause stating that coverage is void should a crime be committed while driving. Some of the most common violations that void insurance claims are DUI, driving on a suspended license, speeding and reckless driving.
The insurance policy has expired.
Believe it or not, the number one reason that insurance companies deny claims is that the policy has lapsed and is no longer effective at the time of the accident. Some people simply forget to pay the premium on time while others fail to renew the policy before the term has ended.
The person at fault for the accident did not file a claim.
At one time, when the person who was at fault for an accident did not file a claim, it would delay the process, sometimes for months. However, some insurance companies have begun to deny claims completely unless they are reported by the at-fault driver.
You were involved in a multiple-car accident.
When an accident involves multiple cars, insurance companies will fight to prove that it was caused by one of the other insured drivers. A driver must be found to be more than 50 percent responsible for the accident for claims to be paid in full. Otherwise, the insurance company is only responsible for a percentage of the claim.
If you or someone close to you has recently been injured in a traffic accident, contact the Orlando auto accident attorneys at David & Philpot, P.L. today. The consultation is free. We will review your case and help determine if your claim has been unjustly denied.