Many people every year get their car accident claims denied by GEICO. And there are cases when claims are mistakenly denied. If this happened to you or you’re just preparing in case it does, then you’ll find here the answers to your burning questions. Including the most common reasons for denials, what you can do about it, and more.
What Are the Common Reasons for GEICO Car Accident Claim Denials?
Exceeding policy limit: Your GEICO policy has a limit. If your claim amount surpasses your policy’s limit, then GEICO will deny it. Or, they may only compensate you for the covered amount. So, you need to know exactly what your policy covers before filing a claim.
Lack of coverage for specific loss or damage: GEICO insurance policies are specific to the types of coverage they offer. If your policy does not include coverage for the particular type of loss or damage involved in the accident, GEICO will probably deny your claim.
Policy exclusions: Exclusions are provisions in insurance plans that restrict coverage in certain situations. GEICO may decline to provide coverage if the nature of your claim falls into one of these prohibited areas.
Suspected pre-existing damage: If GEICO believes that a particular damage already existed before the accident, it may choose not to pay for it. Make sure you have complete evidence of the state of your car prior to the collision if you want to avoid such denials. Regularly taking pictures or videos of your automobile is an excellent habit, especially if you have an older vehicle. This could save you a lot of money in case GEICO wants to deny your claim.
At-fault or partially at-fault determination: GEICO will often deny claims where you were at fault or partially at fault for the accident in some way. They may reject your claim or only pay for a portion of the losses. They make this conclusion based on accident scene evidence, witness accounts, or police reports.
Failure to provide adequate documentation: The right paperwork is essential when making an insurance claim. If you don’t give GEICO the evidence you need to support your claim, they might reject it on the grounds that there isn’t enough of it. Be meticulous in gathering and submitting all pertinent paperwork, including medical records, cost estimates for repairs, and police reports, to back up your claim. Don’t take for granted that they will approve your claim.
Statute of Imitations: This means that there is a deadline by which you must file an accident claim depending on your state. GEICO is legally permitted to reject your claim if you fail to submit it within the statute of limitations window. So, gather your evidence quickly and file your claim as soon as possible.
What Happens If GEICO Denies Your Claim?
Denial is not a definitive sign that you won’t get compensated. Fortunately, you can file an appeal directly to GEICO in hopes to convince them they were mistaken. First, they will send you a document called Denial Letter. It will basically show all the reasons why your claim was denied. From there, you can create your demand letter presenting your case. If there is no settlement then you file a lawsuit.
How To Appeal a Car Accident Denial From GEICO
These are the main steps you need to follow to appeal your denied car accident claim.
Thoroughly Review the Denial Letter
Take the time to carefully read the denial letter you get from GEICO. You might come across important issues that the appeals process might address. With this information, you can start gathering evidence that supports your perspective.
Draft and Send a Demand Letter
Now you need to create a letter demanding your compensation. This document will outline the relevant facts, include evidence in support of your claim, and draw attention to any possible bad-faith actions taken by GEICO during the original denial. This is basically your whole appeal. So, you might need help from a lawyer with experience handling insurance disputes.
Explore Negotiation Opportunities
If your appeal goes well, GEICO will either accept your demand, negotiate a lower compensation or deny it again. In the second case, you have the opportunity to reach a settlement that you’re happy with even if it’s not the full amount you first expected. Otherwise, you will need to file a lawsuit to try to get a fair settlement.
File a Lawsuit as a Last Resort
Once your appeal fails, you can consider filing a lawsuit as your final option. The length of the trial and the result will depend on how well you and your lawyers can prove that GEICO’s decision was wrong. Ideally, you want to settle out of court since it can be a long process. But if you decide to go through it, you could receive full compensation.
Do You Need a Lawyer To File a Claim Appeal?
Although you have the right to appeal on your own, working with a knowledgeable auto accident attorney can greatly increase your chances of success. This would help you navigate the process easier and also make a convincing demand letter. Otherwise, your demand letter might not be enough to convince GEICO to revert their decision. And if you want to file a lawsuit after an unsuccessful appeal, then you’ll need to hire a lawyer anyway.
Does GEICO Deny a Lot of Claims?
GEICO doesn’t have as many complaints of denied claims as other insurance providers. This is considering user reviews from the Better Business Bureau. This doesn’t guarantee that your claim will be approved. But you’ll have a better chance than with other car insurers.
Get Fairly Compensated
When you have a car accident, the last thing you want is for your insurance claim to be denied. Fortunately, you have the option to continue pursuing your compensation through an appeal or lawsuit.
Appealing is a fairly straightforward process. Once you know why they denied your claim, you gather evidence proving they made a mistake and send it as an appeal letter. Don’t be intimidated by this process, many claims get denied and approved later.
Better Business Bureau. GEICO.