The Short Answer…
If your car insurance claim is denied, start by carefully reviewing the denial letter, gathering supporting documents like police reports and medical records, and comparing the denial with your insurance policy. From there, you can provide any additional information needed and file an appeal. If your claim still doesn’t progress or you suspect the insurance company is acting in bad faith, request an external review from the state insurance department and work with a qualified car accident lawyer who knows how to stand up to insurers.
Key Takeaways
- Read the denial letter carefully. It explains the insurer’s reasoning and lists deadlines for appeal.
- Gather all evidence, including accident photos, medical bills, and witness statements to support your claim.
- Know the common reasons for denial, such as lapsed coverage, late reporting, or policy exclusions.
- Appeal the decision quickly. Missing deadlines could cost you your right to challenge.
- Seek legal help. An experienced lawyer can spot bad faith tactics and fight for the compensation you may be owed.
Table of Contents
- Common Reasons Car Insurance Claims Are Denied
- What to Do When a Car Insurance Claim Is Denied
- How to Appeal a Car Insurance Claim Decision
- Insurance Company Tactics You Should Know
- How Braker White Fights a Denied Car Insurance Claim
- FAQs About Denied Car Insurance Claims
- Ready to Fight a Denial?
- Related Articles & Info
Common Reasons Car Insurance Claims Are Denied
Insurance companies deny claims for many reasons, including:
- Policy Exclusions or Lack of Coverage: Your policy may not cover certain types of accidents, drivers, or damages. It’s important to review your policy closely to understand what is and isn’t covered.
- Lapsed Policy or Missed Payments: If your policy wasn’t active due to a missed premium, insurers can deny your claim. Even a short lapse in coverage could give the insurance company grounds to reject payment.
- Filing Errors or Missing Information: Mistakes in paperwork or incomplete documentation can trigger denials. Something as simple as forgetting to submit medical records or providing the wrong date of the accident may give insurers an excuse to say no.
- Delayed Reporting of the Accident: Waiting too long to notify your insurer may lead to rejection. Most insurance policies require you to report accidents promptly, sometimes within just a few days.
- Disputes Over Fault: Insurers may deny claims if they believe you were at fault or if the liability is unclear. They may use police reports, witness statements, or even conflicting stories to justify rejection.
- Pre-Existing Damage or Medical Conditions: If damage or injuries existed before the crash, insurers may argue they aren’t responsible. For example, if you had an old back injury, the company might claim your pain isn’t from the accident.
- Legal Violations: Driving under the influence or without a valid license can void coverage. Insurance companies also may deny claims if the accident involved reckless driving or other unlawful behavior.
- Bad Faith Denials: Sometimes, an insurer denies claims not because of legitimate reasons, but because they’re acting in bad faith. This means they may misinterpret policy language, refuse to investigate properly, or ignore evidence supporting your claim. These denials are unlawful, and you may have grounds for a lawsuit against the insurer.
What to Do When a Car Insurance Claim Is Denied
If you find yourself facing a denial, here’s a step-by-step guide to protect your rights and improve your chances of overturning the decision.
1. Review the Denial Letter
Insurance companies are required to provide a written explanation for their decision. Understand the specific reason for the denial and note any deadlines for appeal. Pay close attention to the wording, as it may reveal whether the denial is based on a technicality, missing documentation, or a broader dispute about coverage.
2. Compare With Your Policy
Check whether the denial contradicts your coverage terms. Sometimes insurers rely on vague policy language or interpret exclusions in their favor. Having a copy of your policy in front of you allows you to see if the denial aligns with what you actually purchased, and whether there’s room to argue for coverage.
3. Gather Supporting Documentation
Collect accident reports, medical records, photos, and witness statements that support your claim. The stronger your evidence, the harder it is for an insurer to ignore the facts. Keep everything organized and dated, since a well-prepared file makes your appeal far more compelling.
4. Request the Claim File
You have the right to ask for the insurer’s claim file, which may reveal errors or omissions in how they handled your case. This file often contains adjuster notes, internal communications, and details about the evidence the insurer considered. Having this information can strengthen your appeal or expose potential bad faith practices.
5. File an Appeal With the Insurance Company
Submit a written appeal explaining why the denial is wrong and include supporting evidence. Be clear, concise, and professional in your letter. Keep a copy of all correspondence for your records in case the dispute escalates.
6. Contact Your State’s Insurance Commissioner
File a complaint if the insurer won’t reconsider your claim. State insurance departments regulate how insurers operate and can open an investigation into unfair denials. While they won’t directly resolve your case, their involvement can pressure the insurance company to treat you fairly.
7. Consult an Attorney
If you believe your claim was unfairly denied or if you need assistance with the appeals process, an attorney can challenge the denial, negotiate with insurers, and file a lawsuit when necessary. In many cases, hiring a lawyer levels the playing field and significantly increases your chance of recovering compensation.
How to Appeal a Car Insurance Claim Decision
Most insurers have an internal appeals process you must follow before you can take further action. This process is designed to give the company another chance to review your claim, but it’s also your opportunity to present a stronger case. Taking the right steps here can make the difference between a final denial and a successful outcome.
- Writing a formal appeal letter: Your appeal letter should clearly state why you disagree with the denial and reference specific policy language that supports your position. It’s also important to keep your tone professional and attach copies of supporting documents so the insurer has no excuse to dismiss your argument.
- Submitting additional documents or corrections: If your initial claim was denied for missing or unclear information, include everything that could strengthen your appeal. This may include medical records, repair estimates, updated police reports, or sworn witness statements. The more evidence you provide, the harder it is for the insurer to maintain their denial.
- Meeting strict filing deadlines: Insurance companies usually set short deadlines for filing appeals, sometimes as little as 30 days from the denial letter. Missing this deadline could mean losing your right to appeal altogether. Mark important dates on your calendar and send all appeal materials by certified mail or another trackable method.
If your appeal is unsuccessful, you can escalate by filing a complaint with your state’s insurance regulator, pursuing mediation or arbitration, or filing a lawsuit with the help of a lawyer. Each option comes with its own rules and timelines, so seek qualified legal guidance.
Insurance Company Tactics You Should Know
Unfortunately, insurers sometimes use bad faith tactics to avoid paying valid claims. These strategies are designed to frustrate policyholders, drag out the process, and pressure people into accepting less than they may be entitled to. Knowing how to spot these tactics is one of the best ways to protect yourself.
- Delaying investigations: Insurers may take weeks or months to “review” your file, leaving you waiting for answers. This can put financial pressure on you to accept a low settlement just to move forward.
- Lowball settlement offers: A common tactic is to offer far less than your claim may be worth, hoping you’ll accept quickly. These offers often come before the full extent of your medical costs or lost wages is known. Accepting too soon could leave you responsible for future expenses that should have been covered.
- Misrepresenting policy language: Insurance companies may interpret vague clauses in their favor or tell you that your coverage excludes certain damages when it doesn’t. Always review your policy directly rather than relying solely on the insurer’s explanation.
- Requesting excessive paperwork: Some insurers ask for endless forms, duplicate medical records, or documents unrelated to your accident. These requests can overwhelm claimants and create unnecessary delays. While insurers are entitled to request proof, excessive demands may signal they’re stalling on purpose.
- Blaming you for the accident: Even when the evidence points to the other driver, insurers sometimes argue that you were fully or partly at fault. They may use minor details, like how fast you were driving or whether you used a turn signal, to shift blame. If liability is disputed, an attorney can help gather evidence and expert opinions to push back.
- Denying in bad faith: In some cases, insurers outright deny valid claims without a reasonable investigation or by ignoring key evidence. This is known as bad faith, and in Texas, policyholders may have the right to file a lawsuit against the insurer for additional damages when it occurs.
Insurance companies have teams of adjusters and lawyers working to protect their profits. By recognizing these tactics early, you can avoid falling into their traps and build a stronger case. If you suspect your insurer is acting in bad faith, working with an experienced attorney can level the playing field and hold the company accountable.
How Braker White Fights a Denied Car Insurance Claim
A denial isn’t the end of your claim—it’s the start of our strategy. When your car insurance claim is denied, we step in to help identify the reason, strengthen your evidence, and move your claim forward with a focused legal plan. Our team is ready to help you:
- Understand Your Denial Letter & Policy: We translate the denial into plain English, pinpoint the real issue, and compare it to the exact policy language you paid for. If the insurer stretched an exclusion or overlooked coverage, we flag it and build your response around those provisions.
- Collect and Analyze Evidence: We gather police reports, medical records, photos, dashcam footage, repair estimates, and witness statements. A complete, organized file makes it hard for the insurer to cling to a weak denial.
- File Your Appeal: We draft a strong, evidence-backed appeal that answers every objection and meets every deadline. Our attorneys are here to help you navigate each step of the appeals process.
- Negotiate With the Insurance Company: We counter insurance company tactics with documentation and leverage. Our goal is a settlement that covers medical care, lost income, and all crash-related losses—not just what’s easiest for the carrier.
- Take Your Claim to Court When Needed: If the insurer won’t act fairly, we file suit and advocate for you in court. The pressure of litigation often moves stubborn carriers toward fair resolutions.
- Protect Your Rights and Peace of Mind: We protect your claim at every turn. With Braker White, you get a clear plan, steady communication, and an advocate dedicated to the best outcome for you and your future.
Why West Texans Choose Braker White
- Local to Texas. We know West Texas courts, adjusters, and insurance rules, and we tailor your strategy for success.
- 60+ years of combined experience. Our team has over 6 decades of results with denied and delayed car accident claims.
- Clear communication. You’ll get regular updates and direct answers from a dedicated team you can trust.
- Free case reviews & no upfront fees. It costs nothing to talk to us, and you don’t pay unless we win.
FAQs About Denied Car Insurance Claims
A claim denial letter is the insurer’s written notice explaining why your claim was denied and what evidence they used. It should also outline any internal appeal steps and deadlines. Read it closely because the wording often reveals fixable issues you can address in an appeal.
Yes. Most car accident claims must be filed within 2 years from the date of the accident. Negotiating with the insurer doesn’t stop the clock and special rules can affect the timeline in some cases. Talk to a car accident lawyer as soon as possible to confirm your exact deadline and protect your rights.
The amount of times you can appeal depends on your policy. Many carriers allow 1 formal internal appeal (sometimes 2). If you’re still denied, you can escalate with a complaint to the Texas Department of Insurance or consider a lawsuit before the statute of limitations expires.
Request the claim file, file a detailed complaint with the Texas Department of Insurance, and speak with a lawyer about your legal options.
They can. Texas doesn’t guarantee rate protection after a claim, and changes depend on fault, claim type, your history, and the insurer’s underwriting rules.
A lawyer is not required, but very helpful. A lawyer can read the denial against your policy language, organize evidence, meet deadlines, and spot bad-faith issues the insurer must take seriously. Legal help is also extremely valuable if the appeal is denied and you want to pursue fair compensation in court.
Ready to Fight a Denial?
If your car insurance claim was denied, don’t let the insurance company have the final say. At Braker White, we stand up for car accident victims in Midland, Odessa, and across West Texas. Our trusted team is ready to challenge unfair decisions, appeal denials, and pursue the compensation you may be owed. Reach out today for a free, no-obligation consultation.
