What You Can Do if Your Insurance Company Refuses to Pay a Claim
Nothing is worse than getting in an accident, but when your insurance denies your claim, it can make a bad situation even more terrible. If your claim was denied it’s important to work to resolve the issue. It can be difficult to know exactly what steps to take, but with the tips below you can work towards getting the settlement you deserve.
Consider Your Leverage
In order to be successful in your pursuit of your claim, you have to know that your insurance company was in the wrong. That’s why the first thing you should do after having a claim denied is to take a close look at your insurance policy. Understanding your policy and what it does and does not cover will help you come up with leverage to ensure your insurance’s cooperation.
Once you know that your claim should have been covered as per your policy, you can collect evidence that supports that claim. You can also request a written explanation from your insurance company, so you know exactly why they denied the claim. This information will prepare you to create a strong argument against their denial. The more leverage you collect, the more difficult it will be for your insurance company to continue denying your claim.
Hire a Lawyer
If your insurance company is still refusing to change their response, it may be time to hire a lawyer. A lawyer who specializes in this type of case will be better able to navigate the legal system and help you get the results you need. They will use their expertise to create a strong argument and demonstrate the correctness of your appeal to reach a settlement.
It’s important to know that you will most likely not need to pay your lawyer up front. Lawyers are often paid through a contingency fee that is typically around 30 or 40% of the settlement. That means you are safe to hire a lawyer, even if the expense might initially seem out of reach. When charging a contingency fee, your lawyer is only paid if they are able to win or settle your suit successfully.
Communicate with Your Insurance Company
Before hiring a lawyer, it is essential to communicate with your insurance company. Starting with phone calls, reach out to the company regularly and keep a record of the responses you get. This may help you get the response you need, but if it doesn’t, it will provide your lawyer with evidence of the steps you took to solve the problem.
Sometimes if phone calls are not working, communicating in writing can get you a response. Include pertinent documents so your insurance company can see the evidence behind your claim. Generally speaking, if your insurance company is refusing to respond to the requests you make in writing, it is considered an unfair practice that could get them in trouble and may support your case if it goes to court.
Be sure to be careful in your communication and avoid giving a sworn statement before talking to your lawyer. You don’t want to accidentally give the insurance company leverage that they can use against you in court.
Don’t Give up Prematurely
It can be tempting to give up once your insurance denies your claim. Your insurance company may seem all powerful, but sometimes they make mistakes and often by pushing back you can get a more positive result. In fact, insurance companies deny many claims in pursuit of their bottom line, but most people simply don’t push back against them. When you do, you have a good chance of receiving a result that works for you.
Often a denied claim is related to a misunderstanding. By working with a lawyer to collect and present the facts, you can help get the coverage you deserve. If you give up as soon as your claim is denied, you may not receive the care you need. Remember that you are paying for your insurance, and you deserve to get the coverage you have paid for.
Having a claim denied can be an incredibly frustrating experience. Having a good idea of the next steps you should take can help you tackle the problem without getting overwhelmed.
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