Being involved in a car accident in Gulfport can be incredibly scary in the moment, but the effects of the accident can also be felt for a long period afterward. Between medical treatment and damage to your vehicle, you could end up spending a significant amount of money. Fortunately, that’s where most people’s car insurance comes in. When your claim is denied, though, it can turn a bad situation into an even worse one. It’s important to understand the primary reasons that car insurance claims are denied so you can avoid these pitfalls.
Common Reasons Your Car Accident Claim Was Denied
Some of the most common reasons that your car insurance claim will be denied in the state of Mississippi include the following:
You Were Driving Without a License or While Under The Influence
It is illegal to drive under the influence or without a license. If you are in an accident, your insurance company may decide to deny your claim. Many insurance companies look at both of these acts as unlawful and intentional acts, and damage caused by intentional behavior is typically not covered.
You Filed Too Late
No matter what state you’re located in, there is a deadline by which you must file any insurance claim or civil lawsuit. If you fail to submit your claim within this deadline, you won’t be able to recover any compensation.
You’re Behind on Payments
If you’re behind on your monthly payments, it’s possible that your insurance company will deny your claim. Most insurance companies will cancel your coverage within a certain number of days after a missed payment. Typically, you will receive a letter in the mail informing you that you must pay by a certain date, or your coverage will be canceled. If you fail to make the payment and your coverage is canceled, you will not be successful with a claim.
Bad Faith
In some circumstances, your claim may be denied simply because the insurance company doesn’t want to pay you, and they are denying your claim or ignoring your claim in bad faith. An insurance company is not permitted to engage in this type of behavior. Signs that your insurance company engaging in bad faith behaviors include avoiding phone calls, emails, and other communication, providing you with information that is intentionally confusing or conflicts with other information they’ve provided, delaying the process so that the statute of limitations passes, or prolonging the process with the hopes that you will eventually just give up and drop the claim.
There is no objective way to determine if an insurance company is acting in bad faith, but most of the time, you can get a feel for it. If you believe this is the case, it’s important to contact a lawyer right away so they can speak with the insurance company on your behalf.
Lack of Coverage
Insurance companies will only pay out based on what the maximum coverage is. If you were involved in an accident that caused significant property damage and you incurred additional expenses, such as medical expenses and lost wages from missing work, you may have spent significantly more money than what the at-fault driver’s policy will pay for. Your claim wouldn’t technically be fully denied here, but you wouldn’t be able to recuperate all your losses. In this situation, hopefully your own insurance company will fill in some of the gaps.
While it’s important to understand the ins and outs of car insurance claims, it’s always wise to contact an experienced attorney who can help you through the process. Contact our Gulfport car accident lawyers today to schedule a free consultation.