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What to Do When a Car Insurance Company Refuses to Pay

What to Do When a Car Insurance Company Refuses to Pay

Shapiro Law Team March 13, 2024 Car Accidents,Personal injury

If you think insurance companies care about you, think again. Insurance companies care about one thing and one thing only: money. They’ll do anything to save a buck and keep money accumulating in your account. When an insurance company refuses to pay your claim, you’ll likely be asking yourself a million questions.

But remember, you have rights. If a car insurance company refuses to pay your claim, file a lawsuit immediately. Our experienced car accident attorneys in Albuquerque, New Mexico, are ready to take your call 24/7.

Dealing With an Insurance Claim Denial

Insurance companies only care about making a profit. So when an insurance company denies your claim, it’s time to fight back with the help of a car accident attorney.

Instead of getting angry, get legal assistance from Shapiro Law Team. A lawyer will guide you through the legal process and support you every step of the way until you secure maximum compensation.

Car Insurance Requirements in New Mexico

New Mexico requires all drivers to carry car insurance. Liability coverage is also required in the state of New Mexico. Drivers who get behind the wheel must carry proof of insurance at all times.

Check out the minimum insurance coverage requirements below.

Minimum Liability Coverage in New Mexico

  • $25,000 for bodily injury per person – This is the maximum amount your insurer will pay to cover injuries caused in an at-fault accident.
  • $50,000 for bodily injury per accident – This is the largest amount that will be paid for anyone injured in an at-fault accident.
  • $10,000 for property damage per accident – This is the total amount your insurance company will cover for damages you caused to another person’s property.

car accident attorney albuquerque

Why Did the Insurance Company Refuse to Pay Your Claim?

You can’t fight your claim until you know why the insurance company refused to pay. Collect information about the claim in writing—this could be a written statement in the form of a denial letter. If you didn’t receive a written explanation, contact your claim representative.

With that being said, let’s take a look at why an insurance company might refuse to pay your claim.

  • The Driver Has Reached Their Policy Limit – If a driver has experienced enough accidents that they reach their policy limit, the insurance company may deny their claim.
  • Limitation on Policy Coverage – An insurance carrier may not pay the cost of damages if a driver with minimal insurance has their car vandalized.
  • The Driver Committed an Unlawful Act – An insurance carrier may not pay if the driver was under the influence of drugs or alcohol.
  • Failing To Report an Accident – Insurance may deny a driver’s claim if that driver failed to report an accident or injuries suffered from an accident.
  • Providing False Information – If an insurance company suspects fraud or discovers a driver was untruthful during the claims process, they will refuse to pay.
  • Not Seeking Treatment Immediately – Not seeking treatment is a red flag for insurance companies and could result in them not paying a claim.
  • A Bad-Faith Denial – Bad faith refers to fraudulent intent. A bad-faith denial means the insurance company intentionally denied a legitimate claim, which violates their legal obligations.

 

Car Insurance Requirements in New Mexico

Car Insurance Requirements in New Mexico

What to Do if an Insurance Company Refuses to Pay

Wondering what to do if an insurance company won’t pay a claim? You’re in good hands with Shapiro Law Team. Yes, it’s disheartening to find out your insurance company has refused to pay your claim. However, there are steps you can take to fight their refusal.

You can start with the steps below.

1. Ask for Clarification

Before jumping to conclusions, request a detailed written explanation for the denial. A written statement or denial letter will help you understand the specific reasons behind the insurance company’s decision. If the denial isn’t clear, reach out to your claim representative for further context.

2. Review Your Policy

Thoroughly review your insurance policy. Understand the terms, conditions, and coverage limits. It’s important to be informed about the details of your policy to determine whether the denial is justified or if there are grounds for appeal.

3. Follow the Appeal Process

Let’s be clear: you have the right to appeal.

Most insurance companies have an appeal process. If you believe the denial is unjust, collect evidence to support your case and submit an appeal. This may involve providing additional documentation, witness statements, or expert opinions that counter the insurer’s decision.

4. Hire an Experienced Car Accident Lawyer

When facing a denied claim, it’s time to bring in the professionals. An experienced car accident lawyer, like those at Shapiro Law Team, can assess the situation to identify potential legal issues and guide you through the complex legal process of challenging the denial.

5. Have Your Attorney Write to the Insurance Company

Your attorney can draft a formal letter to the insurance company, outlining the reasons why the denial should be reconsidered. Our lawyers at Shapiro Law Team have the expertise required to present a compelling case, highlighting legal points that may have been overlooked or ignored.

6. Prepare to Take Your Case to Court

If the appeal process proves unsuccessful, be prepared to take legal action. Your attorney will help you through the process of filing a lawsuit against the insurance company. With a strong legal representative by your side, you’ll increase your chances of achieving just compensation.

Get a Car Accident Lawyer for Accident Claim Denial

If you’ve been faced with a claim denial, you need to take action. In cases like this, you should seek the help of a skilled car accident lawyer to ensure your rights are protected and maximize your chances of the best possible outcome.

At Shapiro Law Team, our dedicated personal injury lawyers work around the clock to provide the support and representation you need. With the right legal team, you can fight for the compensation you deserve. Get started today with a free consultation.

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