What to do if my auto insurance will not pay for a claim?
If your car insurance company is not paying your claim, you have options. The first step is to find out why the claim was denied. It could be due to inadequate or incorrect paperwork, or your insurer could suspect fraud. If you address the issue, the denial may be reversed.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Ask an agent from your insurance company to explain why your claim got denied
- Be sure you understand the intricacies of your car insurance policy to know whether an insurer is likely to accept your claim
- If all else fails, you can go to your state’s commissioner or director of insurance for help
If you’ve been in a car accident, it can be helpful to know that your insurance policy will help cover the cost of repairs to your vehicle. But what happens when your car insurance company won’t pay your claim?
Unfortunately, there are many instances in which car insurance companies refuse to pay for car insurance claims. An insurance company can refuse to pay claims for many reasons, and it is up to the policyholder to understand their car insurance policy and be persistent.
Why are auto insurance claims denied?
Car insurance companies deny policyholders’ claims for many different reasons. The most common reason a claim gets denied is because of limits in coverage.
If you file a claim for damage to your car from vandalism but do not carry a comprehensive car insurance policy, your claim will get denied because you do not have the proper coverage. The same is true if you file a claim for damage to your car because of an accident but only carry a liability policy.
If your car insurance policy does not cover the damage or repairs, your insurance company will immediately deny your claim. Therefore, you should familiarize yourself with your policy to avoid filing claims that get denied.
Car insurance claims also get denied because of fraud. If you lie on your application or in any information you provide to your insurance company, the company has the right to refuse your claim.
For example, if you falsify your address with your car insurance company to get cheaper rates, you may not think twice about it. But if you file a claim after a car accident, your claim could be denied because of the false information you provided to your insurance company.
Other reasons for claim denials often center around the logistics of a car accident. For example, your car insurance company could also deny your claim if you failed to report an accident right away or if you failed to report personal injuries.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
What if my auto insurance company denied my claim?
One of the first things you can do if your insurance company denies your claim is to reach out for more information. Though many insurance companies now offer apps that allow you to file claims and receive pertinent information, it is best to call your car insurance company directly if you have questions about a claim.
When you call your insurance company, you should be able to speak to an agent or representative who can explain to you why your claim got denied. Be sure to write down anything you do not understand, and ask clarifying questions as often as necessary.
It is important to know the specifics of your insurance policy to understand is does and isn’t covered. While your insurance company may have unjustly denied your claim, it’s also possible that your auto insurance claim got denied for a legitimate reason.
Was my claim denied because I have a liability-only policy?
If you purchased a liability-only insurance policy, there’s a good chance a claim for anything other than an at-fault accident will get denied because liability coverage only helps the people and vehicles you harm in an accident. So if you try to file a claim to have repairs done to your vehicle, it will be denied.
The table below shows some of the most common car insurance coverage options and what they cover.
Full Coverage Auto Insurance Coverage Options Explained
Coverage Considerations Description
Liability Most states require a set amount of liability coverage that protects other drivers in the case of an accident
Comprehensive This coverage is typically required by your lender or leaseholder. If you own your vehicle outright, this is optional. It will pay for damage from non-accident-related events such as hail, vandalism, and theft.
Collision This provides financial protection for your vehicle. It will pay for damages after a crash.
Personal Injury Protection (PIP) This coverage will pay for your own medical costs, including lost wages.
Medical Payments (MedPay) Similar to PIP, MedPay covers injury costs but doesn't cover lost wages as PIP does.
Uninsured/Underinsured Motorist Protection Insurance companies are required to offer this coverage to you, and it will pay for your own damages beyond what another's liability covers when they're responsible for an accident.
Guaranteed Auto Protection (GAP) You may owe more on your vehicle than it's worth because of how quickly cars depreciate. This coverage will pay the difference between the value and what you owe if your vehicle is totaled.
Personal Umbrella Policy (PUP) This option provides an "umbrella" of coverage over several types of insurance.
Rental Reimbursement If your car is a total loss or needs repair, do you have another vehicle you can drive? If you need a rental, you should consider this option.
Emergency Roadside Assistance You can purchase this option from your insurer or a driving club.
Pay-As-You-Drive or Usage-Based Insurance This isn't a good choice for everyone, but if you drive very few miles, it might be cheaper for you to purchase this kind of coverage.
Non-Owner Car Insurance This option is for people who do not own a car but borrow one occasionally.
Modified Car Insurance Coverage If you've made modifications to your vehicle, your regular full coverage won't take those changes into consideration when paying for damages. Adding special coverage for those modifications will protect them.
Windshield Coverage Windshield coverage will help you pay for the replacement of your broken glass (check state laws for specifics)
Mechanical Breakdown Insurance This coverage is similar to a manufacturer's extended warranty, and you should weigh the benefits of both a warranty and breakdown insurance to see which is best for you.
If you don’t have a full coverage policy, you may be surprised at how little your car insurance helps you in the event of an accident. To ensure your future claims are accepted, you should carry robust coverage on your vehicle.
Is there anything I can do so my claim gets accepted?
If your claim was denied, but you believe your insurance company should have accepted it, there are a few things you can do to try and get the help you need.
Firstly, you may want your insurer to explain why your claim got denied in writing. Though you may have already heard why your claim was denied, getting an explanation in writing could help you build a compelling case if the denial of your claim was unjust.
Communicate with your insurance company about the logistics of the event in question. If you have pictures, videos, or other documents to prove your claim should be covered, send them to your car insurance agent. You can also send eyewitness statements or a police report if you have any.
If your insurance company continues to deny your claim after you have provided sufficient proof that it should be covered, you may want to go to your state’s director or commissioner of insurance.
An insurance commissioner or director will ensure that each insurance company follows state and federal laws concerning insurance coverage. The commissioner’s office will review the evidence you provide and decide whether your claim should be accepted.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Should I get an attorney once my claim gets denied?
If you have exhausted all your options and your insurance company still refuses to accept your claim, you may consider contacting an attorney.
An attorney specializing in car insurance could be good if you feel like you have nowhere else to turn. In many cases, the cost of procuring an attorney is high. However, if you were in a serious accident that totaled your car or experienced a significant personal injury, an attorney’s help may be worth it.
If you choose to hire an attorney, understand how much they expect to get paid, and stay up-to-date with all issues regarding your insurance claim. Your attorney can keep you updated via email if there are new developments in your case.
Car Insurance Claims: The Bottom Line
Your car insurance company can deny your claim if you don’t carry the proper coverage or if you falsified information. If you believe your insurance company should have accepted your claim, you can take a few steps to get your insurance company to reconsider.
The best way to avoid a denied claim is to purchase proper insurance coverage. If you do not have a full coverage policy, you can use an online quote to find and compare rates from multiple companies to see how expensive monthly rates for full coverage would be.
Enter your zip code now and use our fast, free online tool to get free auto insurance quotes that can save you money!
Frequently Asked Questions
What should I do if my auto insurance company denies my claim?
If your auto insurance company denies your claim, here are the six steps you can take:
- Review your policy: Carefully go through your insurance policy to understand the coverage you have and the reasons for the denial. Make sure the denial is valid based on the terms and conditions stated in your policy.
- Contact your insurance company: Reach out to your insurance company’s customer service or claims department to discuss the denial. Ask for a detailed explanation of the reasons behind the decision. It’s important to maintain open communication and express your concerns.
- Document everything: Keep a record of all interactions with your insurance company, including dates, times, names of representatives, and summaries of the conversations. This documentation may be useful if you need to escalate the issue.
- Seek clarification: If the denial is unclear or you believe it is unjustified, ask for clarification on specific policy terms or provisions that relate to your claim. Request a written response from the company explaining their reasoning.
- Consult an attorney: If your claim remains unresolved or you believe you have a valid case, consider consulting with an attorney who specializes in insurance claims. They can provide guidance on your legal options and help you navigate the process.
- File a complaint: If you believe your insurance company has acted in bad faith or violated your rights, you can file a complaint with your state insurance department. They can investigate the matter and provide assistance in resolving the dispute.
Remember, every situation is unique, and it’s important to consider your specific circumstances when deciding how to proceed.
Can I appeal the denial of my auto insurance claim?
Yes, most insurance companies have an appeals process in place that allows you to challenge the denial of your claim. To appeal, follow these five general steps:
- Review your policy: Familiarize yourself with your policy to understand the coverage and specific provisions related to your claim. This will help you determine if the denial is justified or if you have grounds for an appeal.
- Gather supporting evidence: Collect any relevant documents, photographs, videos, or witness statements that can support your claim. This evidence should clearly demonstrate that your claim is valid and falls within the coverage outlined in your policy.
- Draft an appeal letter: Write a formal letter addressed to your insurance company’s appeals department. Clearly explain why you believe the denial was incorrect and provide a detailed account of the facts surrounding your claim. Attach any supporting evidence to strengthen your case.
- Follow the appeals process: Each insurance company may have a specific process for submitting appeals. Make sure to adhere to their guidelines and deadlines. Keep copies of all documents you submit for your records.
- Consider professional assistance: If you’re unsure about how to proceed or feel overwhelmed, you may want to seek assistance from an attorney or a public insurance adjuster who can guide you through the appeals process.
Are there any alternatives to resolving a denied auto insurance claim?
Yes, if your auto insurance claim has been denied, here are three alternative options to pursue resolution:
- Mediation
- Arbitration
- Legal action
What should I do if my auto insurance claim is underpaid?
If you believe that your auto insurance claim has been underpaid, you can take the following five steps:
- Review your policy: Carefully examine your insurance policy to understand the coverage and provisions related to your claim. Ensure that the payment you received aligns with the terms stated in your policy.
- Contact your insurance company: Reach out to your insurance company’s customer service or claims department to discuss the underpayment. Request a detailed explanation of how they calculated the payment and provide any additional information or documentation that supports your claim for a higher amount.
- Negotiate with your insurance company: Engage in a negotiation process with your insurance company. Present your case, provide evidence such as repair estimates or invoices, and explain why you believe the original payment was inadequate. Be prepared to provide strong arguments to support your position.
- Consider professional assistance: If you are having difficulty reaching a resolution or feel overwhelmed, you may want to seek assistance from an attorney or a public insurance adjuster. They can help assess the situation, advocate for a fair payment, and negotiate on your behalf.
- File a complaint: If all attempts at resolution fail, you can file a complaint with your state insurance department. They can investigate the issue and provide guidance on the next steps to take.
Can I request a review of the denial from my auto insurance company?
Yes, you can request a review of the denial from your auto insurance company. Follow these four steps:
- Contact your insurance company: Reach out to your insurance company’s customer service or claims department and request a review of the denial. Ask for information on the process and the documents or information required for the review.
- Submit additional evidence: Gather any additional evidence, such as photographs, witness statements, or expert opinions, that can support your claim. Present this evidence to your insurance company for their review.
- Follow up: Maintain regular communication with your insurance company to inquire about the status of the review. Be persistent but polite in seeking updates on their progress.
- Escalate if necessary: If the review process does not yield a satisfactory outcome, consider escalating the matter by filing a complaint with your state insurance department or seeking legal advice.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.