Most of us are familiar with the way insurance works. You purchase a policy, whether home, auto, or health, and pay a monthly premium to keep that policy in effect. You hope you never have to use it. Still, if something like a car accident occurs, you’ll be glad to have coverage, unless you’re faced with an unexpected insurance denial accident claim, which can leave you with frustrating delays and unexpected out-of-pocket costs.
At least, that’s how it should go. Accidents cause enough stress as they are. Insurance only seems to add to that frustration when it should ease it. You expect the company you’re paying to provide the help you’re paying for when you file an accident claim. However, when the insurer sends you a claim denial letter, you’re left with all the bills and questioning why your insurance claim might be denied in the first place, despite paying faithfully for coverage.
Don’t accept an unfair denial. You may have legal options. Stand up to the insurer and fight for the compensation you deserve.
Common Legal Reasons Insurance Denies Accident Claims
Receiving a claim denial letter from your insurance company is one of the most isolating feelings you can experience after an accident. You’re left feeling alone, abandoned, and confused. Understanding the common legal reasons for denying an insurance claim can help sort out some confusion. These reasons include:
- The insurance company claims you failed to report the accident on time
- The insurance company says your policy doesn’t cover the damages you incurred
- The insurance company will argue that you violated policy terms, such as using your car commercially
- The insurance company cites the damage as excluded items, such as dents from poor maintenance
- The insurance company blames a late premium or lapse in coverage
These are the most common reasons the insurers cite when sending you a denial letter. However, they will also rely on adjuster tactics to discourage you from filing. The best legal advice any attorney will provide you in dealing with insurance companies is to keep documentation of every communication. Document all the reasons for the denial, the letters you’ve received, and your phone conversations. If you pursue an appeal or a lawsuit, you’ll need these.
What Is Insurance Bad Faith?
Insurance companies have certain insurer obligations they must uphold under contract law. When they don’t, this is called insurance bad faith. This bad faith can occur when:
- Your claim is denied unreasonably
- They ignore the required documentation
- Benefits to you are dismissed with no justification
- A proper insurance investigation has not been conducted
- The insurance company misrepresents your policy terms
In South Carolina, the courts recognize unfair claims settlement as a valid complaint. This means you can sue the insurer for breach of contract and bad faith. Bad faith claims may qualify you for extra damages beyond your original losses.
What Are Your Legal Options After a Denied Claim?
After an accident, you might take all the proper steps. This includes filing an insurance claim within the appropriate amount of time. Yet, you still receive a denial letter. If that happens, you can continue pursuing the compensation you need for your losses. You can:
- File a Claims Appeal – You can file an appeal through a rebuttal letter. You should include medical records and bills, repair estimates, and policy terms in this appeal letter. Ask for reconsideration. This appeal process can trigger a deeper investigation and acknowledgement of your losses.
- Consult a Personal Injury Attorney – A South Carolina personal injury attorney with experience in local law can help you challenge a denial. They will interpret the policy, collect evidence, and pursue your case. They can also handle coverage disputes and bad-faith claims.
- Demand Insurance Payment – You can formally demand insurer action. Ask your attorney to draft a demand letter that cites your policy. If the insurer denies your claim again, you can pursue escalated legal actions.
- File a Lawsuit or Bad–Faith Claim – Lastly, you may file a lawsuit that asks the courts to award you compensation and contractual benefits based on the policy you have with your insurance company. You can also seek extra damages for bad faith insurance practices.
Often, insurance companies are incredibly frustrating. You might even exhaust the first three options and still get nowhere with the company you pay monthly for coverage they’re supposed to supply. The last option, however, can do one of two things. The first is showing the insurance company that you mean business. Often, the Injury Claim Deadlines After A Car Accident in Greenville, especially with the proper legal counsel on your side. However, even if they don’t, you can leave it up to a judge to determine what’s fair.
Steps to Take Immediately After a Denied Claim
If you’re facing an unfair denial from your insurance company, your immediate reaction is likely anger or desperation. Whereas these emotions are entirely understandable, they tend to make it hard to know how to move forward. If you’re in this situation, here are the steps you should take immediately after an insurance company denies your claim:
- Read the claim denial letter carefully
- Collect all communications and notes.
- Gather documentation of your expenses, losses, and injuries
- Review your insurance policy
- File your appeal or contact Maxey McFarland Law
You should act as quickly as possible, because South Carolina’s statute of limitations can vary based on your circumstances. You typically have two years to file, but the longer you wait, the more you risk losing your right to seek compensation.
Contact Maxey McFarland Law Today to Discuss Your Options
Maxey McFarland Law understands insurance laws and appeals in South Carolina. We will help you review your policy and reasons for denial so that we can build a strong case together. We’ll press the insurer to pay what they promised, and we’ll handle lawsuits for denied benefits and bad-faith claims.
A denied insurance claim doesn’t have to mean defeat. You still have choices, and at Maxey McFarland Law, we know which options are best to take. Don’t let the insurer deny your claim unfairly. Whether you need to appeal, negotiate, or take legal action, we’re here to help. Contact us at (864) 900-4231 for a free consultation and speak with one of our South Carolina attorneys who handles insurance denials after accident claims in South Carolina. You pay nothing unless we win your case.