State Farm Insurance is meant to protect your financial well-being from car accidents. But just because you have insurance, it doesn’t mean that the company won’t deny your claim. This happens for various reasons which we will explore in this article.
You may be very surprised and confused should your claim be denied, and you probably will not know how to move forward. In this guide, we’ll answer the most relevant questions about State Farm car accident claim denials.
What Are the Common Reasons for State Farm Car Accident Claim Denials?
If you’re wondering why State Farm might have denied your car accident claim, there are several potential reasons of which you should be aware. Here are just some of the main ones.
Policy limit: State Farm might deny your claim if it exceeds your policy’s limit. For example, if your policy covers $10,000, but you totaled your $40,000 car, State Farm can deny your claim, at least for the full amount.
Violation of insurance agreement: Driving illegally or breaking the law during the accident may result in claim denial. Obviously, you have to follow your insurance contract, so make sure you know what things can result in claim denial. If you were in fact breaking the agreement, then you won’t be able to get compensation, unless you prove otherwise.
Liability: If State Farm finds you liable for the accident, meaning that you caused it, they can deny your claim. State Farm car insurance policies don’t often cover damages if they deem you responsible.
Wrong investigation: State Farm may investigate and make erroneous conclusions for any number of reasons. It could be a mistake or simply they couldn’t gather enough evidence to make the claim valid. In this circumstance, you can proceed with a claim appeal in hopes to get a fair settlement.
What Are Some Signs That State Farm May Deny My Claim?
If you submitted a claim but haven’t heard back and you’re wondering if they’re going to deny it, the following things could be a sign:
- No proper investigation
- Too many requests for documentation
- Lack of communication
- Misrepresentation or omissions
All of these signs could mean that State Farm is not very convinced about your case and is taking a lot of time to reach a decision. This is a good moment to be in touch with a lawyer that can guide you in case your claim gets denied. Keep in mind that just because these things happen, your claim could still be approved, but it’s not a bad idea to have a lawyer on call just in case. The Morris & Dewett expert team has strong experience handling denied insurance claims and can help you in any case.
What Happens If an Insurance Claim Gets Denied?
When you submit a claim, State Farm performs an investigation into the accident. Here, they review your policy and gather evidence about the accident. They will try to conclude if there was any violation of your insurance agreement or not.
If in this process, they find some kind of evidence pointing to a violation of the insurance agreement. Or they can simply determine that your policy limit isn’t enough to cover the extent of your damages.
Once your claim gets denied, State Farm notifies you and you don’t receive any compensation. At this moment, you can decide to file an appeal or even sue State Farm. You can do this if you think they were unfair to your case. Before you decide to seek proper compensation, make sure you have reliable legal representation and strong evidence that supports your case. This way you could reach a settlement with State Farm or go into court.
How To Appeal a Car Accident Denial
There are various steps you need to follow to submit your appeal. You can do this on your own or have your lawyer do it for you. You can trust Morris & Dewett to handle this process for you so you have the best chance of getting compensated.
Review the Denial Letter
After State Farm denies your claim, they will send you a denial letter outlining the reasons for their decision. Here your lawyers can review this letter and provide you with valuable information about your options moving forward.
File a Demand Letter
Upon reviewing the denial letter, yourcar accident attorney can prepare and send a demand letter on your behalf. This document presents the facts of your case and highlights any bad faith practices that State Farm may have employed to deny your claim initially.
In certain cases, State Farm may be open to negotiation after you submit your demand letter. Unless you’re going through this process alone, make sure your lawyers have strong experience and a deep understanding of negotiation tactics for insurance companies so that they can advocate for a fair settlement on your behalf.
File a Car Accident Lawsuit
If you fail to reach a settlement with State Farm, you can proceed to file a lawsuit against them. The process is just like other lawsuits. You and your lawyers must present evidence in front of a court that proves State Farm had bad faith regarding your claim. If you win the lawsuit, you can get fair compensation for your accident and potentially other damages that resulted from the claim denial.
Does State Farm Deny a Lot of Claims?
Looking at customer reviews of State Farm posted on the Better Business Bureau website, you can find several hundreds of complaints about denied claims related to several types of policies. A lot of those claim denials or problems involve car accident policies. This means that State Farm does deny a significant number of claims every year. This is why, if State Farm is your car insurance provider, you need to be in touch with a lawyer in case they want to deny your claim.
Get Help With Your Denied Claim
If your car accident claim is wrongfully denied by State Farm, it can be highly frustrating. This is especially true should they seem to be approving your claim but suddenly find you liable for the accident. However, it is crucial to remember that a denial is not the end of the road for your claim. With the assistance of a skilled car accident lawyer, you can navigate the appeals process and work towards securing the compensation you deserve.
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