If your insurer denies your claim, chances are you think all hope is lost.
Mississippi is a state with a high number of car accidents and one of the highest statistics for fatal car accidents in the United States. In 2020, there were 752 traffic accident deaths in Mississippi. Those who end up with injuries are lucky, but they also have to go through a long process to recover the money for their damages and suffering, for which they will hire a Gulfport personal injury attorney.
Unfortunately, it is not always easy to claim compensation. There are situations where an insurance company will deny a claim. Can you sue the company when this happens? Let’s find out!
Can I sue an insurance company if they deny my claim?
Yes, you can certainly sue an insurance company when they deny your claim. When you have agreed an insurance policy with a company, you have signed a binding agreement. Therefore, the company is obliged to comply with the conditions listed there. Otherwise, they will violate the contract.
Although this is sometimes the case, certain scenarios allow an insurance company to deny your claim. In such situations, you cannot sue them as it would not be favorable.
When is an insurance company allowed to deny my claim?
Before you start a lawsuit and put yourself in more trouble than you already have, you need to know the situations that warrant an insurance company denying your claim. Here is when your request may be refused by the company:
- You filed the claim for something your policy does not cover
- You have not paid any premium
- The incident was not reported to the authorities at the right time, so you missed the deadline
- Following an investigation, it is discovered that you already had some of the injuries before the accident
- When you filed the claim or purchased insurance coverage, you did not provide the correct information
- Following an investigation, the insurance company discovers that you are responsible for the accident, so you are not eligible for compensation
- You cannot prove who is responsible for the incident or the extent of the damage or injury you suffered
What happens once your application is denied?
If your insurer denies your claim, chances are you think all hope is lost. Fortunately, there are some things you can do, especially if you know you meet the eligibility criteria for payment. Maybe the insurance company made a mistake, so you can try again.
What you can do is file a claim with the insurance company. This will require a review of the adjuster’s decision. Additionally, you can file complaints with the state agency responsible for regulating insurers.
If this action is unsuccessful because the insurer does not want to review the decision, you can go further and take legal action against the company.
When is it okay to sue an insurance company that has denied your claim?
Let’s look at some situations where you can sue the insurance company for denying your claim:
- They rejected the claim due to misrepresentation of the claim after the contestability period expired
- They delayed the investigation of the claim inappropriately
- They did not deny or approve your claim within a specified or reasonable time
- They did not defend you in a liability case where one of the claims was covered by your liability insurance policy
- They did not pay a claim when it was clear who was responsible for the incident
Things to consider when suing a company that denied your claim
When suing the insurance company is your only option right now, you need to make sure you prepare for the process and do everything right. Here are some tips that can help you:
- Always make sure you have records of the property that is insured. After the accident, you should take pictures of your house or car as soon as possible. In addition to photos, you can also bring relevant receipts.
- Keep records of all correspondence with the insurance company. Write down any phone conversations you have and keep copies of emails between the two of you. Also, always expect them to record your calls.
- Choose an experienced and knowledgeable attorney in your area.
- Be sure to document all of your expenses, such as attorney fees, repairs, lost wages, and medical bills.
Suing an insurance company for denying your claim is certainly possible. However, you need to make sure the company didn’t have a good reason to reject your claim so you don’t waste time and money on an unsuccessful lawsuit.