By Susan Melony
There are a few monthly bills you make sure are paid on time. You don’t want your electricity or water shut off, so your utility bills are always a monthly priority.
The same applies to your auto insurance, which is another payment you never miss. After all, you never know when you may be involved in a car accident.
What happens if your Alabama auto accident claim is denied? Are you completely out of options? We’re exploring the reasons insurance companies deny injury claims and looking at your possible options if this happens to you.
How auto insurance works in Alabama
Your auto insurance policy typically serves two purposes but this can depend on the type. If you’re carrying full coverage, your car insurance should cover damage to your vehicle regardless of the type of accident.
Whether a tree branch fell on your car or you’re hit by a reckless driver, the repairs to your vehicle should be covered by your policy. Full coverage insurance also protects you if you’re the at-fault driver. Your insurance can cover the other driver’s damages, saving you from having to pay out of your pocket.
If you only carry the state’s minimum insurance requirements, your damages aren’t covered but your liability policy will take care of the other driver.
Minimum auto insurance requirements in Alabama
What are the minimum insurance requirements in Alabama? All drivers with vehicles registered in Alabama must carry at least:
- $25,000 in bodily injury or death benefits per individual involved in the accident
- $50,000 in total accident injury and death
- $25,000 for property damage
These are the state’s minimum insurance requirements and an accident claim can’t exceed your policy’s caps. For example, if property damage exceeds $25,000, your liability policy isn’t going to pay out the full claim amount.
To receive full compensation, the non-fault driver will need to file a lawsuit against you, which means showing up in civil court to argue why you shouldn’t be responsible for paying the remaining damages.
Insurance in at-fault states
Like the majority of states, Alabama follows at-fault insurance rules. This means you can only file an insurance claim against the other driver’s carrier if you’re not responsible for causing the accident.
Even if the at-fault driver is only carrying the state’s minimum insurance requirements, you should be able to recover compensation for things like vehicle damage and your medical costs. If you’re the at-fault driver and only have liability insurance, you probably can’t file a claim.
However, Alabama is also a contributory negligence state and this can work against you. Contributory negligence effectively prevents you from filing an insurance claim if you’re partially responsible for causing the accident.
For example, if your vehicle is hit by a driver who runs a red light but you’re also making an illegal turn, there’s a good chance you can’t file a compensation claim against the other driver. To recover your damages, you’ll need to turn to your full coverage auto insurance policy.
Why insurance companies deny accident claims
You pay your monthly premiums on time. Sometimes, you even get the payments in early. If you’re involved in a vehicle collision, you expect your insurance provider to step up and help cover all or at least some of your damages.
You understand that if you’re only carrying liability insurance you can’t file a claim with your provider. However, when you’re dealing with the at-fault driver’s policy or your full coverage insurance, you don’t expect to run into a problem.
Remember, insurance companies are a business with the goal of turning a hefty profit. Insurance adjusters pay close attention to every claim that crosses their desk, and yes, they’re looking for reasons to deny your claim.
So, why do insurance companies deny accident claims? The list of reasons can range from not properly filling out the paperwork to missing a filing date. Here’s a look at some of the common reasons insurance providers may send back a claim rejection letter.
You’re the at-fault driver
Remember, Alabama is both an at-fault and contributory negligence state. If you’re at fault for the accident, even slightly to blame, your claim against the other driver’s carrier will probably be denied. If you’re wondering who determines fault after a car accident, it can vary but it’s usually left to the authorities and insurance adjusters.
You may be able to file an appeal in civil court if you believe you’ve been assigned blame unfairly. There’s no guarantee the court will change anything, but it may be something to consider if you feel you’re not at fault for the accident.
Supporting evidence is lacking
This is one of the most common reasons insurance companies deny accident claims. You can’t send in an insurance claim without providing evidence supporting each listed damage.
Some examples of evidence insurance adjusters look for include your accident report and medical records. Your property damage repair estimates and receipts are other examples of commonly submitted documentation.
Every accident claim is unique and this affects the type of supporting evidence you need to prove your case. Working with an experienced accident attorney can help ensure this isn’t a reason your claim may be denied.
Suspicion of fraud
You can easily make a mistake on your claim form and this is often reason enough for it to be denied. Taking your time filling out the various forms can help prevent this issue. Also, don’t list damage unless you have supporting evidence.
You also don’t want to wait to report the accident to the authorities, as this can also raise the insurance adjuster’s suspicions.
What to do if your accident claim is denied
If your accident claim is denied, don’t panic or give up. You still have some legal options that can help you recover compensation. Start by talking to an experienced accident attorney, they can help you resolve the potential issue.
Your attorney can also file an appeal with the insurance provider. As a last resort, your attorney can even file an appeal in civil court. While it will take some time, there’s a good chance you can reverse the initial denial.
