Auto insurance companies spend millions of dollars on advertisements that portray them as caring, compassionate and there to help their clients whenever they get into a crash. But as many people in Western New York have found out, in the real world, these big corporations do not always act like their TV commercial mascots.
Insurance companies are for-profit businesses. Their goal is to take in as much money as possible in premiums and pay as few claims as possible. The policies they write are carefully worded to help them avoid paying claims or at least minimize the amount they must pay you when you make an undeniable claim.
Reasons auto insurers give for denying claims
Under the terms of the typical auto insurance policy, there are several reasons why an insurance company can deny a claim:
- Missing or allegedly false information on your policy application
- You were allegedly breaking the law during the crash, such as by driving drunk, even if the collision was not your fault
- Failure to report the accident in a timely manner
- The incident falls outside of your coverage
- Your policy had lapsed for nonpayment of premiums at the time of the wreck
The company’s reasons for denying your car crash claim might be legitimate. Or they might go against the evidence. So, to answer the question in the headline — no, insurance companies do not always play fair with their customers. But you do not have to automatically accept their decision or take a lowball settlement offer for your injuries and the damage to your vehicle.
Appeals are possible
You have the right to challenge a denied claim, which usually starts with a mediation session but can proceed to a lawsuit if mediation does not work. Consulting with a personal injury attorney who is familiar with how insurers handle auto accident claims can give you a better understanding of what to expect.
