What Can I Do If My Car Accident Claim Was Denied?

A car accident can leave you with serious injuries, mounting medical bills, and lost wages. The last thing you expect is for your insurance claim to be denied. Unfortunately, insurance companies deny claims more often than people realize, sometimes unfairly. According to the National Highway Traffic Safety Administration (NHTSA), nearly 6 million car accidents occur in the U.S. each year, and a significant number of claims are disputed or denied. The Illinois Department of Transportation (IDOT) reports that thousands of car accident claims in Illinois are contested annually, leaving victims struggling to recover compensation.

If your car accident claim has been denied, don’t panic—you still have options. Understanding why your claim was denied and how to fight back can make all the difference in recovering the compensation you deserve. At John J. Malm & Associates, our experienced Illinois car accident attorneys can guide you through the appeal process and ensure your rights are protected.

Common Reasons Car Accident Claims Are Denied

Insurance companies use various reasons to deny claims, including:

1. Disputed Liability – The insurer claims you were at fault or partially at fault for the accident.
2. Lack of Evidence – The insurance company has insufficient proof of your injury, damages, or fault.
3. Policy Exclusions – The insurer argues that your policy does not cover the accident circumstances.
4. Missed Deadlines – Failing to report the accident or submit documentation within a timeframe set by your car insurance policy.
5. Pre-Existing Conditions – The insurer claims your injuries were not caused by the accident.
6. Lapsed Coverage – Your policy was inactive or had insufficient coverage at the time of the accident.
7. Failure to Seek Medical Attention – Delayed or inconsistent medical treatment may be used as evidence against your claim.

If your claim was denied, the first step is to understand the reason for denial. Reviewing your denial letter and insurance policy will help determine your next course of action.

Steps to Take If Your Car Accident Claim Is Denied

1. Review Your Denial Letter
   • The insurance company must provide a written explanation for the denial.
   • Identify the specific reason and any supporting evidence they cite.
2. Gather Additional Evidence
   • Get a copy of the police report if you haven’t already.
   • Collect witness statements, photos, and medical records to strengthen your case.
   • Request any surveillance footage from nearby businesses or traffic cameras.
3. Check Your Insurance Policy
   • Review your policy limits, coverage exclusions, and deadlines.
   • Ensure the denial aligns with your actual policy terms.
4. File an Appeal with the Insurance Company
   • Many denials can be reversed through a well-documented appeal.
   • Write a detailed appeal letter addressing the insurer’s concerns and providing additional evidence.
   • Keep records of all communications with the insurer.
5. Consider Alternative Dispute Resolution (ADR)
   • Mediation – A neutral third party helps negotiate a settlement.
   • Arbitration – A private decision-maker or a panel of decision makers evaluates the claim and issues a binding ruling.
6. Consult an Illinois Car Accident Attorney
   • If your appeal is denied or ignored, an attorney can take legal action on your behalf.
   • An experienced Naperville car crash lawyer will handle negotiations, evidence collection, and potential litigation.

Filing a Lawsuit After a Denied Claim

If your appeal is unsuccessful, you may have the right to file a lawsuit against the at-fault party or even your insurance company for bad faith practices. A lawsuit can help recover:

• Medical expenses (past and future)
• Lost wages and loss of earning capacity
• Pain and suffering
• Property damage
• Punitive damages (if the insurer acted in bad faith)

Time limits apply—Illinois typically has a two-year statute of limitations for filing personal injury claims, so don’t delay.

How Often Car Accident Claim Denials Happen?

The following chart illustrates the common reasons insurance companies deny claims based on data from NHTSA and IDOT:

Understanding these statistics can help claimants prepare a stronger case and avoid common pitfalls.

Frequently Asked Questions About Denied Car Accident Claims

1. Can I still recover compensation if my claim is denied?

• Yes, you may appeal, provide additional evidence, or file a lawsuit if necessary.

2. Should I accept the insurer’s decision without challenging it?

• No. Insurance companies often deny valid claims. Always review and appeal the decision if necessary.

3. How long do I have to file an appeal?

• It depends on the insurer, but many companies require appeals within 30 to 60 days of the denial.

4. Can I sue my insurance company for bad faith denial?

• Yes, if the insurer wrongfully denies a legitimate claim, you may be able to file a lawsuit for bad faith practices.

5. What if the other driver was uninsured?

• You may still recover compensation through your uninsured/underinsured motorist coverage.

6. What if I didn’t seek medical attention immediately?

• You can still file a claim, but delayed treatment may weaken your case. A doctor’s evaluation can help establish a connection to the accident.

7. How can a car accident lawyer help?

• An Illinois accident attorney will gather evidence, negotiate with the insurer, and take legal action if necessary to get you the compensation you deserve.

Why Hiring a Car Accident Attorney Matters

Insurance companies prioritize their bottom line—not your best interests. Hiring an experienced Naperville personal injury attorney can help you:

• Build a strong appeal with compelling evidence.
• Avoid legal pitfalls and missed deadlines.
• Negotiate higher settlements for medical bills, lost wages, and pain and suffering.
• File a lawsuit if needed to pursue full compensation.

At John J. Malm & Associates, our six award-winning attorneys have over 90 years of combined experience handling car accident cases. With offices in Naperville and St. Charles, we fight for our clients to ensure they receive the compensation they deserve.

Contact John J. Malm & Associates for a Free Consultation

If your car accident claim has been denied, don’t give up. The award-winning Illinois car accident attorneys at John J. Malm & Associates can help you fight back and recover the compensation you deserve. Contact us today for a free consultation. With offices in Naperville and St. Charles, we are ready to stand up to the insurance companies and fight for your rights.