Homeowner’s insurance companies in Florida are notorious for denying residents’ property damage claims and auto insurance claims, effectively adding insult to injury in the aftermath of a car crash.
These denials and other shady tactics are all too common in Florida, but even if you have been hurt in a crash and an insurance company has denied your claim, you have options. The following guide will outline why insurance claims often get denied and how an experienced auto accident lawyer may be able to help you.
Common Reasons for Denied Insurance Claims in Florida
Denied car accident insurance claims in Florida can be linked to many factors, such as:
Disputes Over Fault
One of the most common reasons for denied insurance claims involves disagreements over who caused the crash. Suppose that another party crashed into your vehicle; that person (or their insurance company) may try to shift some of the blame to you as a means of reducing their liability.
That’s concerning because Florida follows a comparative negligence rule for personal injury cases; the compensation value you are eligible for could be reduced based on your percentage of fault.
A Lack of Coverage
Your insurance company may deny a claim because your policy does not cover that specific type of accident or damage. For example, Personal Injury Protection (PIP) coverage applies to medical expenses, not property damage or pain and suffering. As such, you will need additional coverage to receive compensation for those specific kinds of losses.
Delayed Reporting
You are required to report an accident as soon as possible and seek medical treatment within a specified time frame to qualify for PIP benefits. Failure to do so could lead to a claim denial, so make sure you review your policy and all benefits requirements.
Alleged Fraud
Insurance companies investigate claims for potential fraud and may deny payments if they suspect that the claimant is misreporting the facts. Even minor errors in documentation can cause a claim to be flagged for fraud.
The good news is that you can correct any errors and ask the insurer to reprocess your claim, but the bad news is that the process can take weeks and delay your potential compensation as a result.
Failure to Pay Premiums on Time
Insurance companies may cancel your coverage and deny subsequent claims if you miss a payment. Always ensure your policy is valid and that you make all payments on time. If you know you are going to be late on a payment, call your insurer and set up a payment arrangement; if they agree, you can avoid any lapses in your coverage.
Pre-Existing Conditions
Insurers may argue that you had a pre-existing condition that caused or exacerbated your injuries. If an injury existed before a crash, the insurance company can avoid paying your medical expenses or reduce their financial obligation.
Legal Ambiguity
If there is a loophole that an insurer can exploit to avoid paying you, they are going to take advantage of it. If you have questions, call your insurance agent or talk to a legal professional.
Other Ways Insurance Companies Mistreat Auto Accident Victims
A denied insurance claim can be incredibly frustrating, especially when you are dealing with the consequences of another’s negligence.
What’s worse is that while denials in Florida are common, they are not the only strategy that insurers use to avoid doing the right thing for accident victims. Some other tactics to look out for include the following:
Rushing You Into a Settlement
Sometimes, insurance companies will reach out to accident victims and offer them a settlement. They aren’t doing that to help the victim, though. Their goal is to save as much money as possible, and they’ll do that by underpaying on a claim. Paying what a victim is owed is simply bad for business.
Once you sign a settlement agreement with the insurance company, you won’t be able to obtain any additional compensation or file a suit against the at-fault party. As such, don’t sign any agreement with an insurance company until you’ve talked to a personal injury attorney.
An experienced lawyer will review the offer and help you determine whether it adequately covers your damages. In most instances, the initial offer will be far too low, possibly leaving you to cover thousands in out-of-pocket costs. Your attorney can negotiate for a higher settlement amount and protect your right to fair compensation. When the insurance company is presented with strong arguments for compensation and hard facts to support your claim, they are more likely to increase their offer.
Refusing to Negotiate in Good Faith
Your attorney will try to negotiate a fair settlement so you can access the funds you need to recover. Sometimes, however, insurance companies will outright refuse to negotiate in good faith. In other words, they have no intention of offering a reasonable settlement.
In these circumstances, your lawyer may recommend taking your case to trial. If the judge or jury rules in your favor, the insurance company will be legally bound to adhere to the court’s decision.
What You Can Do About Denied Auto Accident Claims
Florida law protects policyholders from mistreatment by insurance companies. According to Florida Statute 624.155, you have the right to file a lawsuit against insurers for bad faith practices, including the following:
- Unjustified denials
- Failure to properly investigate a claim
- Unreasonable delay in processing payments
- Offering settlements that are much lower than the claim’s value
Your insurance company is also prohibited from misleading you or failing to communicate timely decisions.
Don’t Face the Insurance Companies Alone — Contact the Schrier Law Group
If you believe your insurance company is acting in bad faith, hold them accountable with the help of an experienced legal team. The Schrier Law Group is here to stand up for your rights in the aftermath of car accidents. Our skilled attorneys will push back against the insurance companies and can contest denied claims. Contact us today to schedule a free consultation.
