You are driving through an intersection while the traffic light is green. Someone runs a red light on their end and smashes into your car. Your car is totaled and you are now suffering from extreme pain and broken bones.
You file a claim and are sure that you have enough evidence to prove that the other driver was at fault. But your claim gets denied anyway. You may be confused and wonder why was it denied and what your next steps might be. Talking with an experienced insurance claims attorney is your best bet. In the meantime, keep reading to learn more about your options.
Reasons for Denial
There are several reasons why your claim may be denied. In many cases, the insurer believes your claim lacks merit. Perhaps they think you lied about what really happened, since your version of the events do not match what the other driver told them. Maybe they think you will not pursue the claim further, so they deny the claim and see what happens next.
In some cases, though, the other party may not even be insured with the insurance company. Perhaps they didn’t pay their premiums and let the policy lapse. If this happens, the insurance company has no obligation to cover any claims associated with the vehicle. This means that you would need uninsured motorist coverage and pursue the claim with your own insurer.
What You Can Do Now
You need to show the insurance company that you are serious about the claim. Hire a personal injury attorney and ask about your options. Your attorney may start by writing a demand letter to the other party’s insurance company. A demand letter is a claim for compensation that outlines the value of the damages caused in the accident, as well as your side of the story and why the other driver is at fault.
Once the insurance company receives the letter, they may not change their decision, but they may provide a more detailed explanation as to why the claim was denied. In some cases, though, they may pay a portion of the damages or even reverse the decision altogether.
If your claim is still denied, the insurance company may have a formal appeals process. The process often uses arbitration to help the victim arrive at a fair settlement.
Filing a Lawsuit
You may be able to succeed with a lawsuit against the insurance company. This would depend on the amount of damages you suffered. You lawyer can do a cost analysis to see if a lawsuit would make sense from a financial standpoint.
Each state has a statute of limitations. For Pennsylvania, it is two years. This means you have two years from the date of the accident to file a lawsuit. Sometimes insurance companies will keep denying claims in hopes that you will forget about this deadline and miss out. After two years, your chances of recovery are slim, so do not delay.
If your auto insurance claim was denied, time is of the essence. Schedule a consult with the Pennsylvania personal injury lawyers at Louis P. Lombardi II & Associates today.