Navigating the Roadblock: When State Farm Denies Your Auto Claim & What You Can Do About It
Imagine that you’ve been in a vehicle accident. You’ve been a loyal State Farm customer for decades and have never missed a payment for your auto insurance. You rely on them to cover the damages the one time you are unfortunate to get hurt in a crash. You call them up to file a claim only to discover a few days or weeks later that they have denied your auto claim. So much for loyalty! This blog post will go over the basics of insurance claim denials, help you understand the harsh reality of state farm claim denials, and how you can get the compensation that you deserve.
The Harsh Reality of State Farm’s Auto Claim Denials
If you’ve ever watched NFL football on Sunday, you have probably been inundated with funny and well-planned commercials involving the biggest starts. Patrick Mahomes, Travis Kelce, Andy Reid, Aaron Rodgers have all been hired by State Farm. They don’t talk about their actual plans and why you should hire them. They simply want to like the commercials and therefore like State Farm. They are one of the largest insurance companies in the United States. They might have the image of being likeable, but the truth is that they are a profit driven business, and they will always put their own interests ahead of yours when making decisions about denying claims or settling your auto claim.
It’s important to know some of the reasons State Farm will deny claims. They might claim that you missed a payment, have lapsed coverage, insufficient evidence, lack of medical records, lack of witnesses, that you had a previous injury, that you really aren’t that hurt, etc. It’s important to understand these are common denial factors that State Farm uses and not be disappointed.
State Farm Is Not Your Friend
State Farm Makes Profit Driven Decisions
State Farm’s focus of their business is to make as much money as possible, which means they will usually fight your claim to minimize the amount of the claim. When dealing with State Farm, it is very common that their initial offer will be much lower than you expect. You should never accept this offer without talking to an experienced lawyer first. A car accident lawyer can help you negotiate with State Farm and get a fair settlement or verdict. Hiring an attorney will almost always result in a larger settlement even with attorneys’ fees.
Common Reasons for State Farm Denying Your Auto Claim
There are many reasons that an insurance company such as State Farm will deny your claim. They have rejected claims for the following reasons:
- Policy limitations
- Coverage expiration
- Lack of evidence
- Insufficient injuries
- Disputed liability
- Driver exclusions
- Policy exclusions
- Delayed Filing
- Accident involved an uninsured motorist
- Bad faith
- Unpaid premiums
- Failure to inform insurance company
- Exceeding the speed limit
- Driving under the influence of drugs or alcohol
What To Do If Your Auto Claim Is Denied by State Farm
If you receive a letter from State Farm that states your car accident was denied, it can be extremely difficult to stay hopeful. You must realize that this is not unusual and doesn’t necessarily mean you don’t have a case. There are actions that you must take in order to repeal this decision and secure financial compensation for your medical bills, damage to your vehicle, wage loss, and pain/suffering.
You must review the letter State Farm has sent to you carefully and you will need to build evidence that will refute their claims. This is why it’s critical to hire a personal injury attorney that can gather all sorts of evidence and build the strength of your case. An attorney will know the best way to counter the claims made by the State Farm denial letter. They will help gather medical records, contact eyewitnesses, hire relevant experts such as an accident reconstructionist, get video surveillance footage, etc.
Reviewing The Denial Letter From State Farm
When State Farm denies your car accident claim, they will support their claim with reasons for taking the position of a denial. Analyzing the reasons for this denial is essential to understand why State Farm denied your claim and the best steps going forward. Unreasonable delays when building your case or investigating the case can be a reason for refusing compensation. Misinterpretation of your policy is another reason for refusing compensation. In many cases, they will also emit pertinent information which will result in underpayment of the claim.
After going through the document and looking at all the reasons for the denial of your claim, you will need to take steps towards contesting their decision. You will need to fight this decision and provide reasons and evidence that proves their decision is incorrect.
Gathering Additional Evidence
To support your case and dispute State Farm’s rejection, it is vital to accumulate evidence that will provide proof for your claim. This could include:
- Obtaining a copy of the police report
- Contacting witnesses and testimony
- Pictures and videos of the accident scene
- Hiring experts
- Gathering medical records
If you are unsure what evidence to gather or how to gather it, seeking assistance from a qualified car accident attorney will help you greatly. They will have invaluable advice and direction on how to move forward with your challenging decision. Personal injury attorneys have the knowledge required to assist you in finding necessary evidence needed to make an effective rebuttal towards the denial claim that State Farm has made.
Consulting an Attorney
Having an attorney that specializes in car accidents is crucial to the appeals process if your claim was denied by State Farm. They will have extensive legal knowledge in insurance law and will know what steps are necessary in obtaining a fair settlement. They routinely sue insurance companies and will help you contest the decision of your denial. They will look closely at your denial letter; submit a demand letter and they will make sure that all the formal procedures are followed. They will effectively help negotiate on your behalf with State Farm and will provide all the papers necessary regarding your motor vehicle accident claim. Insurance companies will take your claim more seriously if you decide to hire an attorney as they know you mean business. You have a much better chance of being awarded a fair settlement with the help of an attorney regardless of your refusal or rejection.
The Appeals Process: Challenging State Farm’s Decision
To have a successful claim against State Farm, it’s important to be both organized and prepared. The process can seem quite complicated, but it involves drafting a demand letter, submitting an appeal, and potentially other steps if State Farm decides to fight and drag out your claim. This can include interrogatories, depositions, arbitration, and mediation or facilitation.
Filing a Demand Letter
A demand letter will be created by your attorney, and it is an essential element of the appeals process. The letter or correspondence will document and highlight all aspects pertinent to your case and it demands that State Farm provide adequate compensation for any physical harm, mental harm, and property destruction resulting from the vehicle crash. It will also include rebuttals to counter the points State Farm claimed in the original denial letter. The better this demand letter, the more leverage you have when negotiating with State Farm.
Formal Appeal Submission
If the demand letter is unsuccessful in reversing the State Farm decision to deny your claim, you should consider filing a formal appeal. In most cases, State Farm does not waiver on their decision and they will require that you fight them tooth an nail. An experienced car accident lawyer will know to submit a formal appeal and make sure all the deadlines or timeline requirements are met. They will take care of the whole process and make sure that you plea will be property formed and submitted.
Alternative Dispute Resolution
In most instances, seeking resolution through the traditional routes such as a demand letter and formal appeal submission simply don’t work. Using alternative dispute resolutions such as mediation and arbitration are quite common in this situation. A mediator that is a 3rd party with no interest in the outcome of the case will be used to facilitate a settlement. This mediator will negotiate with both parties in an attempt to find a fair settlement figure.
The reason facilitation is used so widely in car accident disputes is that it is much easier and lower cost than litigation. Litigation is rare in car accident cases unless both parties are unwilling to negotiate at all. An experienced car accident lawyer will know the best alternative dispute resolution technique and are experienced in facilitations.
The Role of a Car Accident Attorney in Reversing Denied Claims
The experience, skill, and knowledge of a car accident attorney is pivotal when trying to overturn rejected claims by State Farm. They have a mastery in the realm of insurance law, negation skills, and will guide you through this complex process so you can focus on your recovery.
You are probably confused as to why your claim was denied when it seems like it should be straightforward. An attorney can help you understand why your auto claim was denied. They will be able to explain what the process will be, evaluate the value of your claim, and help prepare you for any subsequent settlements or judicial proceedings in the in the future.
Expertise in Insurance Law
Hiring an attorney with knowledge of insurance law can be extremely beneficial for anyone dealing with a claim denial from State Farm. They will be able to interpret the policy that you have, recognize legal obligations, and adhere to applicable laws when it comes to evaluating the merit and value of your case. An experienced lawyer will have valuable insight into negotiations that will take place between you and State Farm as well as navigating the claims process. By having professional help and assistance, you can make sure that you are properly protected which maximizing the chances of overturning State Farm’s decision.
If you decide to negotiate with State Farm by yourself, you must realize that State Farm will try take advantage of you. They might offer you a lowball settlement, delay your payment as long as possible, and essentially not take you seriously. Hiring an attorney will show that you are serious. An attorney will simply sue them and they know they can’t take advantage of an attorney with experience dealing with these types of cases. An attorney will be much more aggressive when negotiating with State Farm and it will result in a much better settlement for you.
Filing a Lawsuit If Necessary
Most of the time, State Farm will be unwilling to offer a fair resolution. When this happens, you will be forced to file a lawsuit. Your car accident attorney will file a personal injury lawsuit on your behalf. They will assist in navigating all the laws that pertain to your case and ensure that you represented well.
Get Maximum Compensation For Your Denied Auto Claim by State Farm
Navigating a denial from State Farm can be difficult and stressful, but with the knowledge of why deny claims and the proper steps to take for challenging their decision and help of a experienced car accident lawyer, you have a better chance of receiving the compensation that you deserve.
Frequently Asked Questions
How do I fight a State Farm claim denial?
A car accident involving State Farm will usually require hiring a lawyer to review and challenge denial letters, send a demand letter for fair compensation, handle an appeal determination, and file a lawsuit if they feel it is necessary.
Why is State Farm denying so many claims?
You must remember that State Farm is a business, and they are focused on the bottom line of the company. They deny countless legitimate auto claims every single year because they take away from company profits.
What can cause an insurance claim to be denied?
Insurance companies may reject a claim in cases where fault or liability is contested, or if there is not enough proof to hold their insured accountable. To guarantee the success of a demand, it is imperative that solid evidence regarding liability be presented. It’s important for State Farm or other insurance companies to ensure they have all the necessary facts when deciding on claims.
How to negotiate with State Farm for claim?
It is best to hire an attorney to negotiate on your behalf for a denied auto claim.
How does a car accident attorney help in reversing denied claims by State Farm?
A car accident attorney is invaluable when trying to reverse a denied claim. They have extensive knowledge of insurance law, can negotiate aggressively for you against State Farm, and they can file a lawsuit if they deem it necessary. They will help get the maximum settlement for your case.