5 Common Reasons Why Oregon Insurance Companies Deny Car Accident Claims
Recovering from a car accident is often a physically, emotionally, and financially draining process. On top of recovering from your injuries and continuing to pay your bills, you also face the prospect of dealing with one or more insurance companies. Ideally, your insurance claims go through without a hitch. Unfortunately, the reality is often quite the opposite.
Oregon auto insurance companies can deny accident claims for many reasons, some legitimate and others less so. Here are five of the more common reasons that we see for claim denials and how they can lead to prolonged insurance disputes with accident victims.
- The Policy Has Lapsed
An insurance policy is a contract. In exchange for paying your premium each month, the insurance company agrees to provide coverage. The key is that you pay that premium each month and on time. If you forgot to pay your premium your coverage may lapse. And if you happen to get into a subsequent accident, your insurance company can and will deny coverage. It is important to note, however, that an insurer cannot simply cancel your auto insurance policy for failure to pay premiums. They must still comply with specific notice requirements, and their failure to do so may make their attempted cancellation ineffective.
- There Is A Policy Exclusion
Auto insurance policies always contain a lengthy list of conditions and exclusions. So even if your vehicle has proper coverage and your premiums are up-to-date, the insurer may still be able to point to an exclusion as a reason to deny coverage. For example, most personal auto insurance policies will not cover accidents if the vehicle in question was used to provide rideshare services at the time of the accident, i.e., the driver was moonlighting for Uber or Lyft.
- You Failed to File a Timely Claim
Your auto insurance policy likely contains language requiring you to “promptly” notify them of an accident. The exact time limit may be up for debate, but the point here is simple: Do not delay in reporting an accident to your insurance company. The longer you wait, the more likely the insurer will attempt to deny coverage based on that delay.
- There Is Missing Information
Sometimes an insurance company denies a claim simply because the policyholder failed to completely fill out a form or provide a necessary supporting document, such as the police report of the accident. If this oversight or mistake is not promptly remedied, the insurer can lawfully deny the claim based on the policyholder’s failure to comply with the terms of the policy.
- There Is a Dispute Over Fault
If you believe another driver was at-fault for your accident, you can demand their insurance company compensate you for your injuries, up to the liability limits of the policy. Of course, the insurance company may deny your claim if they believe their insured driver was not at-fault. Alternatively, the insurer may argue that any injuries you suffered in the accident were pre-existing and not a result of the crash.
Contact a Portland Insurance Disputes Lawyer Today
If an Oregon insurance company denies your auto accident claim without a valid reason, you have grounds to pursue an independent legal action for bad faith. Our Portland insurance disputes lawyers can review your case and advise you of your rights in this area. Contact Rosenbaum Law Group, PC, today at 503-288-8000 to schedule a free consultation.
