When Insurance Companies Refuse to Pay After a Car Crash

There are two things the vast majority of Kentucky drivers have in common: We all have insurance, and we all hate paying for it. Depending on your policy, those monthly premiums can take a major chunk out of the household budget. Of course, if you get into an accident, you’re very relieved to know “you’re covered.”

Unfortunately, you might be in for a surprise when you go to file a claim only to be told: “denied.”

When that happens, you could be stuck with a huge repair bill, not to mention any bills for an ER visit. Does the insurance company have a legitimate reason for the denial, or is this an incident of bad faith?

You’ll benefit from asking an experienced Louisville insurance bad faith lawyer about what is going on and what your options might be. One thing is for sure, if your insurance carrier refuses to pay on a claim, you’re not alone.

The Growing Risk of Insurance Companies Refusing to Pay

Kentucky law mandates that drivers must carry liability insurance with the following minimums:

• Bodily Injury Liability: $25,000 per person and $50,000 total per accident.
• Property Damage Liability: $25,000 per accident.
• Personal Injury Protection (PIP): $10,000 in no-fault coverage per accident that covers medical bills and lost wages regardless of fault, though it can be rejected in writing.

You’re also allowed to go over those minimums for additional protection. Your insurance company is obligated to pay on a legitimate claim within the limits of your policy. At least, that is how it is supposed to work.

A recent article published in the Wall Street Journal took a look at the growing risk of your insurance company not coming through with an accident claim reimbursement. According to a Wall Street Journal analysis of thousands of company regulatory filings, close to 45% of auto insurers didn’t pay out on auto liability and medical claims last year.

One example of this happened to Christopher Benton. He got into a minor fender-bender accident and expected his carrier, National General, to approve his $5,000 liability-coverage insurance claim. However, they denied the claim, citing Benton’s 15-year-old son.

Apparently, the teen wasn’t in the family’s Silverado at the time of the accident. He didn’t even have a driver’s license. But National General said his absence from the policy application breached its requirements to disclose all household members ages 14 or older. Benton didn’t even know that was a policy clause until he was denied.

“That’s why you pay for insurance,” Benton told the WJS. “It doesn’t seem right that they can just not pay.”

He’s now part of a class-action lawsuit alleging National General set up its application process to discourage the required disclosures.

The question for you is how closely you’ve read your policy?

Examples of Bad Faith Insurance Practices

It might be hard to imagine that your insurance company would intentionally act in bad faith. You have to remember that every insurance company operates under the driving goal of being profitable. That only happens when they take in significantly more money than they pay out.

You need to recognize examples of bad-faith insurance practices to determine whether you have a chance to reverse your claim. Here’s what you need to look out for:

• Denial without a reason: Your carrier could attempt to reject a claim without providing a clear, written explanation based on your policy language. As much as they will hold you accountable for not following the policy, you’re entitled to do the same to them.
• Failure to investigate: Every accident, regardless of its scope, should be investigated by the insurance company. If your carrier denies or minimizes a claim without thoroughly reviewing the physical damage or medical facts, it could be a sign of bad faith.
• Unreasonable delays: Insurance companies are fond of saying that they “act fast” to resolve claims. However, there are times when the company stalls the claims process by sitting on paperwork or failing to make a timely decision. That can lead to frustration, and it might make you more willing to accept any offer just to get the matter resolved.
• Excessive documentation requests: When an insurance carrier demands repetitive or unnecessary paperwork, it can cause further delays.
• Lowball offers: A reasonable settlement request should include all your current and future expenses. An insurance company can counter with a settlement offer far below the actual value of a proven loss. That adds more pressure on you to settle, especially if your finances are stressed.
• Shifting rationales: If you push back against a denial, the insurance company might try a different rationale. That would be another example of bad faith insurance.

Why Legal Representation Is Essential for Denied Car Crash Claims

As mentioned, insurance companies are out to protect their bottom line. You also have the right to protect your financial future. You don’t have to accept an insurance company’s denial. You’re entitled to appeal, but that is not without challenges. You can’t just say file a denial over email. You need to have strong evidence and a deep understanding of the law.

That is where the Thomas Law Offices come into play.

We have helped many clients hold insurance companies accountable for their bad faith actions. Our experience helps us recognize the tactics and provide a strong counter defense. Under Kentucky’s pure negligence law, you’re entitled to seek compensation even if you’re partially to blame for the accident. Insurance companies will try to shift blame to reduce the amount they have to pay out. Conclusive evidence can prevent that from happening.

If you feel like you’re getting the runaround from your insurance company, we want to hear from you. Call to set up a free case evaluation today. We don’t back down from a fight with an insurance company, and neither should you.