What To Do When Car Insurance Denies A Claim (2025)

Why Would Car Insurance Deny a Claim?

Can car insurance deny a claim? The answer is yes. These are some of the common reasons insurance companies deny claims:

Your Policy Has Lapsed

Once you have a car insurance policy, you should make sure you pay premiums on time. Most insurance companies have some sort of grace period for paying your premium before your policy lapses. However, if the grace period passes and your policy lapses before your accident, the claim will be denied.

You Don’t Have the Right Coverage

Broadly speaking, there are three main types of car insurance coverage:

• Liability: Covers injuries and property damage when you’re at fault
• Collision: Covers damage to your car in accidents you cause
• Comprehensive: Covers non-collision damage (like hail damage or vandalism)

For a claim to be paid, you must have the right coverage. For example, in car accidents caused by another driver, you must file a claim with that driver’s liability insurance.

If you caused an accident that damaged your car, you must file a claim with your own insurer. However, if you don’t have collision coverage, your claim will be denied.

The Damage Falls Under a Policy Exclusion

Every insurance policy has certain exclusions. These are instances where your insurer won’t pay. Some common exclusions include wear and tear to your car, damage you caused to your own vehicle while driving under the influence of alcohol or drugs, and broken glass.

You Didn’t Report the Claim on Time

Most car insurance companies have a set deadline for when you must file a claim. You should always check your policy to make sure you understand how long you have to file a claim. If you miss the deadline, the insurance company may be able to deny your claim.

You Don’t Have Enough Evidence

Unfortunately, you can’t just tell your insurance company about damage to your car and expect them to pay your claim — you must include evidence. These are some of the common types of evidence used to support insurance claims:

• Photos of the accident scene
• The police report from the accident
• Statements from witnesses
• Your medical records
• Repair estimates from auto body shops
• Footage from dash cams or traffic cameras

The more high-quality evidence you have, the harder it will be for your insurance company to deny your claim. If need be, an attorney can help you gather the right evidence.

The Insurer Believes the Claim Is Fraudulent

Unfortunately, insurance fraud is common enough that insurance companies must screen all claims for potential fraud. Even if you file a claim in good faith, the insurance company may believe it’s fraudulent if you don’t include enough supporting evidence.

The Insurer Is Acting in Bad Faith

After serious auto accidents, car insurance companies will often try to do what they can to avoid paying claims. Sometimes, they go so far as to act in bad faith. This means they act dishonestly to avoid having to pay claims. A common example is using deliberately convoluted language in the denial letter.

What Happens When Car Insurance Denies a Claim?

If your insurance company denies your claim, you will receive a claim denial letter. The letter may be mailed, sent electronically or both. The letter should clearly outline why the insurance company denied the claim.

What to Do When Car Insurance Denies a Claim

When a car insurance company denies your claim, your very first step should be to thoroughly understand the reasons for the denial. Start by carefully reading your denial letter. The insurer should have explained why the claim was denied, but if the letter is unclear, get in touch with the insurance company to clarify.

Once you understand why the claim was denied, you should make sure you understand the appeals process — and then file an appeal.

How to Appeal a Car Insurance Claim Decision

Each insurance company has its own process for filing an appeal. However, generally speaking, the appeals process follows these steps:

• Read your policy to make sure you know the appeal deadline
• Gather additional evidence (like photos or medical records) to further support your claim
• File an appeal that includes this additional evidence
• Contact an attorney if the insurer continues to deny your claim

If you’re wondering how to settle a car accident claim without a lawyer after a denial, your first step should be to file an appeal. You aren’t required to have a lawyer help you with an appeal. However, because car accident lawyers deal with claim denials regularly, the right lawyer might improve your chances of having your claim approved on appeal.

Wondering What to Do When Car Insurance Denies a Claim?

Having an insurance claim denied can be incredibly frustrating, especially if you know your claim is perfectly valid. In many cases, working with an attorney can help improve your chances of a successful appeal.

Not sure how to find the right lawyer? ConsumerShield can help. We match people in need of legal services with qualified, pre-vetted attorneys nearby. Fill out our contact form below to get started with a free case review!