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Top 5 Reasons Why Your Insurance Claim Is Rejected

May 9, 2018

You carry auto insurance to protect yourself and other drivers after an accident. But what if, after an accident, your company denies your insurance claim? This unfortunately happens far too often, and leaves drivers confused about their options. If your claim has been denied for any of the reasons below, working with an experienced attorney can help.

1. The Policy Wasn't In Force

If you let a policy lapse, or switched insurance companies, your former insurer can deny your insurance claim. You have to file with a company that was covering you at the time of the accident.

2. You Only Carry Liability

New Jersey law requires a minimum coverage level that you can obtain with a basic insurance policy. This gives you liability coverage, meaning it pays out for damage you cause to another driver. If you get into an accident without collision coverage, the company may not pay for the damage to your own vehicle.

3. Your Information Changed

If you have moved or gotten a new vehicle without telling your insurer, it may deny a claim based on not having your current information. Insurers base premiums on risk that they assign, and may deny your insurance claim if they do not have the right information.

4. You Reported Late

Insurance policies demand that you report accidents in a specified time frame. If you fail to do so, the insurer can deny your insurance claim--even if the accident should be covered.

5. Your Policy Excludes the Claim

Insurance policies contain conditions and exclusions that affect coverage. The person driving may not be included in the policy, or you could be driving under the influence or doing something else that keeps the company from covering the claim based on the specific policy language.

Sometimes insurance companies deny claims that they should cover. If your insurer has wrongly denied your insurance claim, you don't have to just accept the decision. Contact Stern and Stern LLP to let us fight the insurance company and get the compensation you deserve.