People who are hurt in a car accident often must figure out how to pursue the liable party for damages and part of this involves dealing with the insurance company.
While you might think that you have a valid claim, it is not uncommon for car insurance companies to dispute and, at times, successfully deny your claim. But why would the insurance company deny your claim?
To answer this question, it helps to start by understanding how insurance claims work:
How car insurance claims work
A car insurance cover serves two purposes. Firstly, it allows you to file a claim against your own cover for damages. And, secondly, it allows you to file a claim against another party for damages caused to you.
On the second point, fault is critical. California is a pure comparative negligence state. Thus, under California’s pure comparative negligence laws, you can still recover damages even if you contributed to the accident that led to your injuries and/or property damage. The amount of damages you are entitled to will be reduced based on your percentage of fault.
So when can the insurance company deny your claim altogether?
Here are two instances when your claim can be denied:
- If your claim raises suspicions – did you fail to call the police to the accident scene? Did you unjustifiably take long before seeking treatment? Did you let the statute of limitations run out?
- If your claim is fraudulent – Insurance companies take honesty very, very seriously. Any falsified information will automatically lead to the denial of your claim.
Knowing your legal rights can help you avoid costly mistakes when dealing with the insurance company.