Car Insurance Claim Denied? Here’s What You Need to Know
You’ve been in a car accident. You did everything right—filed your claim, submitted your documentation—and then comes the shock: your car insurance claim is denied. Now what?
Whether it’s for vehicle damage, medical bills, or loss of use, a denial doesn’t have to be the end of the road. Here’s what to do next and how you might still recover the money you were expecting.
1. Understand the Reason for the Denial
Start by reviewing the denial letter from your insurance company. Common reasons claims are denied include:
- Missed filing deadlines
- Lack of coverage for the incident
- Lapsed or inactive policy
- Missing or insufficient documentation
- Policy exclusions (e.g., if the driver was unlisted or under the influence)
- Disputes over who was at fault
Tip: Insurance companies must provide a written explanation. If it’s unclear, request clarification in writing.
2. Review Your Policy Carefully
Go back to your actual insurance policy (not just the summary). Look for:
- What’s covered and what’s excluded
- Filing requirements and timelines
- Definitions of liability, collision, and comprehensive coverage
You may find your claim was wrongfully denied—or that a technicality can be challenged.
3. Contact Your Insurance Adjuster
Sometimes a denial is due to missing documents, an error, or miscommunication. Call your claims adjuster and:
- Ask for clarification
- Provide any missing paperwork or photos
- Record all conversations (date, time, name, what was said)
A professional and persistent approach can often reopen a denied claim before it escalates.
4. File a Formal Appeal
Yes, you can file a claim appeal if your car insurance is denied. Most insurance companies have an internal appeals process.
To file an appeal:
- Write a clear, formal letter stating your disagreement
- Include supporting documents (photos, repair bills, police report, medical records)
- Reference specific parts of your policy that support your case
Be aware: There are time limits—usually 30 to 60 days from the denial notice.
5. Consult an Accident Attorney (If Needed)
If the denial is serious—especially involving injuries or significant property damage—consult with an accident lawyer. They can:
- Review your policy and denial
- Communicate with the insurance company on your behalf
- File a legal claim if needed to recover damages
Many attorneys offer free consultations and don’t charge unless you win your case.
6. File a New Claim If a New Incident Occurs
If your claim was denied for a specific event, but you experience new damage from a separate incident (e.g., a second accident or worsening damage), you can file a new claim—but make sure it’s clearly unrelated to the denied one.
7. Report Bad Faith Insurance Practices
If your insurer is acting unfairly—like denying a valid claim without reason or ignoring communications—you may be dealing with bad faith insurance. In that case, you can:
- File a complaint with your state’s Department of Insurance
- Take legal action for breach of contract
Final Thoughts: A Denied Claim Doesn’t Mean You’re Out of Options
A denied car insurance claim can be frustrating—but you don’t have to accept it at face value. Review your policy, push back with evidence, and consider legal help if necessary.
You may still be able to get compensation, even after a denial—especially if your claim was valid and properly documented.
FAQs
Can I dispute a denied car insurance claim?
Yes. You can file a formal appeal with your insurer and include supporting documentation.
Can I file another claim after a denial?
Yes—if the damage or loss is from a new, separate incident. Otherwise, consider reopening or appealing the denied claim.
What happens if I don’t agree with the insurance company’s decision?
You can escalate the issue through an appeal, involve a lawyer, or report the company to your state’s insurance regulator.
