Auto insurance in Atlanta offers a financial shield, safeguarding against loss in a crash. Nonetheless, this is not always the case, and insurance companies may deny a claim and refuse to compensate you for losses incurred in an auto accident. Fortunately, claim denial is not a death sentence, and Atlanta insurance dispute attorneys can evaluate the case and advise accordingly. If denied in bad faith, the lawyers appeal the decision and demand the insurer to pay for damages. Learn seven reasons your car accident claim can be denied.
Failure to pay your insurance premiums is detrimental, attracts hefty fines, and lowers your credit score. Also, it may lead to a lapse in coverage, especially if you skip multiple payments. Suppose you get into an accident with numerous unpaid premiums, your insurer may deny your claim.
2. Liability Issues
Many vehicle owners do not read the fine print of their insurance policies before signing on the dotted line. Therefore, they learn behaviors that their auto policies do not cover when making claims. For instance, most insurers don’t cover damages from drunk driving and unlicensed drivers.
In Georgia, distracted driving, including handheld cell phones, texting, and changing radio channels, is illegal. Consequently, insurance providers may deny claims for accidents caused by breaking the law. Besides these intentional wrongs, some providers won’t pay for avoidable accidents.
Similarly, an insurance company may deny a claim with a liability dispute. If you and the other driver can’t agree on who caused the accident and, in turn, cater for damages, your insurer won’t pay. They will expect the other driver to pay the claim.
Insurance providers expect you to report an auto crash promptly to give them adequate time to investigate the claim. However, they do not give a specific duration for it –in terms of days or months, resulting in contradiction and confusion. Sometimes, the provider may deny a claim citing that you didn’t file it on time. While the timing may be reasonable for you, it may not be for the insurer.
Your auto claim may be denied on misinformation or failure to disclose basis if such information would have impacted your premiums or eligibility for coverage. For example, while you may have forgotten to update your address on the policy after moving to a new neighborhood, the insurance may interpret it as misinformation to leverage a discount.
5. Failure to Receive Medical Treatment
After a car accident in Atlanta, victims should seek medical care immediately to treat injuries and document the accident. Failure to do this may result in a dispute since your insurer can’t prove you sustained the injuries in an auto crash.
Similarly, if medics don’t find a diagnosable injury after a motor vehicle accident, you can’t claim. Nevertheless, some injuries take time for symptoms to become apparent. According to Healthline, the symptoms of whiplash, common in rear-end collisions, may take 24 hours to a few days to appear.
6. Change of Use
Most insurance companies ask owners the miles they anticipate driving annually and the primary vehicle use –personal or commercial. If you use your car for business with personal use coverage, the insurer may deny a claim in the event of a crash. The main reason is that commercial vehicles are used more frequently, thus more likely to crash. Owners wanting to use their vehicles for commercial reasons should opt for a ‘business use’ policy.
Many people pay their auto insurance premiums faithfully, hoping the insurer will have their back when the unexpected happens. Shockingly, insurance providers deny some claims due to timeliness, liability, misinformation, change of use, and nonpayment reasons. A skilled insurance dispute lawyer can help if you suspect insurance bad faith led to your claim denial.