If you have an insurance claim and your insurance company refuses to settle, you may wonder why. Car accident attorneys Los Angeles can help you with the legal procedures to follow if this happens to you.
Main Reasons Why Insurance Companies May Refuse to Settle a Claim:
The Claim is Uninsured Loss
This is most often the case when the loss is not eligible for coverage. When this happens, the insurance company will consider the claim as an “uninsured loss” and refuse to pay. This means if you are filing a claim and your insurance company is no longer obligated to cover it (because it is an uninsured loss), they will only pay what they originally paid under their policy limits and no more.
There is Substantial Underwriting
This means that insurance companies will refuse to settle the claim because they believe their policyholder failed to disclose important information. If you file a claim and do not disclose something that may affect the settlement amount, the insurance company will refuse to settle it.
The Claim is Fraudulent
Insurance companies can also refuse to pay your claim if they believe you are trying to make an illegitimate claim. It can be done by either hiring someone to stage an accident or to destroy property on purpose, among other things.
The Claim is Not Covered on the Policy
This can be a common reason for refusing to settle a claim, especially when the claim is not on the policy limits. The specific problem with this reason is that it can be misleading and must be taken seriously. This means that if you have insurance coverage for your vehicle but have an accident that is covered by another policy, your insurance company may refuse to pay your claim.
You Waited Too Long To File Your Claim
This is yet another common reason for refusing to settle a claim. If you wait too long to file your claim or do not respond to an insurance company’s initial offer of settlement, they will move on from your case. It means that the longer you wait to file a claim, the less likely it will be paid.
You Don’t Meet The Statute of Limitations
The statute of limitations is a specific time for filing a claim for damage that has been done to one’s property or vehicles. The more you wait after the damage has been done, the less likely it is that your insurance company will pay any part of your claim.
It can be frustrating to have your claim denied; you should always do your best to work with your insurance agent and the courts to get the settlement you deserve.
