In every state except Virginia and New Hampshire, car owners are required to purchase car insurance to cover the cost of expenses related to an at-fault accident.
For the state of Louisiana, the required limits of liability (the amount of insurance you’re required to carry on your vehicle) are 15/30/25. These limits provide $15,000 worth of coverage for bodily injury to one person, $30,000 worth of coverage for bodily injury to multiple people, and $25,000 in coverage to other people’s property. Because of these requirements, it’s easy to assume that every claim you file for a car accident will be covered. There are instances, however, in which car accident claims might be denied by an insurance company.
Here are 5 common reasons why claims are denied and what you can do if you find yourself in one of those situations.
Late Payments
One of the most common reasons car accident claims get denied is the owner of the policy did not pay their premiums on time. If you have received notice from your insurance company that you have a late payment or that they’re discontinuing coverage as a result of a late payment, they have the right to deny your claim if payment is not made before the accident.
Inadequate Coverage
A common misconception regarding auto insurance is that carrying the basic limits required by the state will cover you in all accident situations. Unfortunately, this is not true. Carrying the basic limits of liability will only cover damage to the other party’s property and the cost of the other party’s medical payments. Therefore, if you submit a claim for damage to your own vehicle but only carry the basic limits of liability, your claim will be denied.
Insufficient Information
When filing a claim with your auto insurance company, it’s imperative to have all the necessary information regarding the accident. A police report is the most basic and essential piece of evidence you’ll need. If you fail to provide credible information to the company regarding the claim, it’s possible the claim will be denied.
Disputed Liability
Louisiana is a fault-based state, meaning the party responsible for the accident is the party responsible for the associated costs. Therefore, if you file a claim with the other party’s insurance company, assuming they’ll cover it because you believe the other party was at fault, they have the right to deny the claim until responsibility has been proven.
The Car Wasn’t Covered
Whenever you get a new car, one of the most important things to do is call your insurance company right away to obtain coverage. Although most companies will extend coverage to a new vehicle if it was replacing a car that was previously covered, they still have the right to deny a claim if you did not inform them of your purchase.
Here’s what you can do if your claim is denied.
For any claim that is denied, you should take action right away by filing a dispute. Most disputes can be filed by contacting your insurance company directly through the claims department or through your insurance agent.
Call A Trusted Louisiana Car Accident Attorney
Although you can dispute your claim on your own, your case will be stronger if you first obtain the legal services of a trusted car accident attorney like E. Orum Young. Our law office has more than 30 years of experience helping individuals navigate insurance claims and car accident lawsuits. We can help you too. If you’re filing a car accident claim and need the assistance of an attorney, contact our offices today to schedule a free review and learn what we can do for you.
