Why Was My Underinsured Claim Denied?

• October 30 2024
• |   Insurance

Being involved in a car accident is stressful enough, but things can get more complicated when the driver responsible for the accident does not have enough insurance to cover your damages. Underinsured motorist accidents are very common, and they usually leave victims with medical bills, costs of repairing damaged properties, and other costs that the at-fault party simply cannot pay.

In moments like this, as a victim, you might want to rely on an underinsured motorist claim from your insurance provider. However, many individuals are shocked to find out that the claim has been denied, leaving them confused and frustrated. If you are in this situation, you are not alone; insurance companies are notorious for denying underinsured claims, for many reasons.

The first step you need to take in resolving the issue is to understand why it happened. To take further steps and ensure that your claim is not denied again, you will need the help of an underinsured motorist coverage lawyer from Leverty & Associates Law. Our lawyers can help increase your chances of success.

This blog will help you understand the most common reasons why underinsured motorist claims get denied and what you can do about it. For more information on underinsured motorist claims, contact our law firm at (775) 322-6636 (Reno) or (702) 507-0201 (Las Vegas).

Why Hire Underinsured Coverage Attorneys From Leverty & Associates Law?

At Leverty & Associates Law, we have experienced and knowledgeable lawyers who are always ready to fight in your favor when you want to appeal your underinsured claim that was previously denied. We have a combined experience of more than 50 years representing and advocating for clients who need legal support and assistance. Our attorney will dedicate their expertise and skills to ensuring you get a favorable outcome.

We will aggressively represent you and work tirelessly to help you get your deserved compensation. Your legal needs will always be at the forefront of everything we do. Contact us today at (775) 322-6636 (Reno) or (702) 507-0201 (Las Vegas) to learn more about how we can help you.

We have a track of success that shows how well we have represented and advocated for our clients. 

Reasons Your Underinsured Claim Was Denied

Your insurance company can deny your insurance claim for various reasons. Although many companies are notorious for denying claims in bad faith, there are some situations where they have good reasons to deny an insurance claim. The following are common reasons why insurers deny claims:

Lack of Proper Coverage

One of the main reasons your underinsured motorist claim could be denied is that you do not have the right coverage. Many assume their auto insurance covers all situations, but that is untrue. For instance, underinsured motorist coverage is an insurance coverage that sometimes needs to be added separately. As a policyholder, if you did not specifically include this type of coverage in your policy, the insurance company might deny your claim, even if you expect to be protected.

Policy Limits Have Been Exceeded

Your insurance company may sometimes deny your underinsured claim because you have used up your policy limits. This happens when the amount you claim exceeds the maximum amount your policy allows. If the limit has been reached, your claim could be rejected.

Missed Deadlines

Insurance companies have strict deadlines for when you need to report an accident. If you wait too long before filing a claim or notifying your insurer, your underinsured coverage claim might be denied. To avoid a denied claim, ensure you know how long you have to file after an accident so you do not lose the opportunity to receive benefits.

We have been involved in numerous multimillion-dollar verdicts for our clients. You can count on us.

Disputes Over Liability

Another common reason why your insurance claim might have been denied is if you have yet to determine who is at fault for the accident or if there is a disagreement over who is liable. If the insurance company believes you were partially or entirely responsible, they may deny your underinsured claim. This happens because underinsured motorist coverage usually applies only when the other driver is found to be at fault. If there is a disagreement about liability, your claim may be held up or denied.

Lack of Solid Evidence

Insurance companies require solid evidence to prove that you are entitled to compensation. If you do not provide sufficient documentation, like medical bills, witness statements, police reports, cost of repairs or damages, your insurance provider might deny your claim. It is essential to gather all the necessary paperwork to support your claim.

Policy Exclusion

Your underinsured claim can also be denied if it falls under a policy exclusion. Insurance policies often include specific exclusions, highlighting situations where coverage does not apply. For example, if you were involved in a hit-and-run and your policy excludes coverage for that type of accident, your claim could be denied.

Bad Faith

In many cases, insurance companies act in bad faith. This means your insurer denied your claim without any valid reason or proper investigation. If you believe your claim was unjustly denied, you can challenge the denial by appealing or by seeking legal help.

Get Help From Leverty & Associates Law

At Leverty & Associates Law, our years of experience and knowledge have helped us work well with our clients, and their positive reviews prove our dedication and commitment to securing successful outcomes. Our years of experience and profound understanding of underinsured coverage claims can be useful for your legal case.

If you need a team of dependable lawyers by your side, we are the ones to call. Contact us at (775) 322-6636 (Reno) or (702) 507-0201 (Las Vegas) for a free initial consultation.