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What to do if a car insurance company denies your claim
Maggie is the managing editor for Bankrate insurance. In addition to overseeing the day-to-day operations of the insurance editorial team, she leads a team of licensed insurance experts who craft insurance content that makes complex information about home, auto, pet, renters and life insurance accessible and easy to understand.
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and other home lending products. Other factors, such as our own proprietary
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If your car insurance claim is denied for any reason, you will receive a claim denial letter from the insurer.
Your claim could be denied because your policy is lapsed, you don’t have enough coverage or for some other reason.
If your claim is denied, you can appeal the decision—a lawyer can help but is optional.
If you’ve been in an accident and had problems with your insurance afterward, you may be wondering what to do when car insurance denies your claim. This unfortunate circumstance may happen for a variety of reasons, but shouldn’t be the cause of despair. It is possible to appeal a denied claim, either with or without the help of legal counsel, and doing so could result in a better outcome for you. In this guide, we review what you can do to potentially avoid a denial and how to handle one when it happens.
What’s a claim denial letter?
After you file a claim with your auto insurance company, an insurance adjuster will be responsible for documenting the details of the accident. After analyzing the facts provided, the adjuster will determine whether or not the car insurance claim will be denied or accepted. If the accident is deemed not covered by your auto insurance policy, the insurance company will send you a formal letter stating what factors led to the decision.
A denied car insurance claim doesn’t necessarily mean the end of the claims process. If you do not agree with your insurer’s claim denial, you have the right to appeal the insurance company’s decision. If your insurance denies a claim, the reason for the denial will influence how you should go about the appeals process.
Why did my car insurance company deny my claim?
There’s no single yes or no answer to the question, can insurance deny a claim? The unique factors present in every situation will affect whether or not your insurer approves or denies your claim—and whether or not that denial is upheld.
Elements such as the contents of the police report, eyewitness statements and more can all play a role. In some cases, a claim could be denied because premiums weren’t paid on time or because the policyholder wasn’t truthful in their claim application. It’s also possible that your policy doesn’t cover the situation for which you made a claim.
If you receive a denial letter, read it carefully, as it will typically include supporting evidence for the decision. Some common reasons a claim is denied include the following:
Failure to pay your insurance premium on time can result in a lapse in coverage, meaning you don’t have an active policy to file your claim against. Paying your auto and home insurance premiums on time is the best way to ensure coverage is in force when you have to file a claim. Whether you pay the policy term in full or use auto-pay to prevent missed payments, avoiding a lapse in coverage is crucial. In addition to the likelihood of your claim being denied, a lapse in coverage could also result in fines and other penalties, such as a suspension of your driver’s license and vehicle registration, depending on your state.
When you purchase car insurance, pay attention to the coverage types you choose and what they provide financial protection for. For example, you may have an older car and feel comprehensive and collision coverage is not needed. However, if your car is stolen or you cause an accident, the insurance company will not be able to assist without the proper coverage.
When reviewing your claim, the adjuster can see your policy’s inclusions. Filing a claim for damage that you either lack coverage for or that is specifically excluded will result in a claims denial letter being sent by your insurer.
It can be tempting to choose state minimum liability limits to keep the cost of car insurance low. While you may save on your premium, if you are involved in an accident with several injuries to others or hit an expensive car or building, you may exhaust your liability limits and be vulnerable to a devastating financial loss. For example, say you have $25,000 in property damage liability coverage but you total a car worth $40,000. The auto insurance company can pay up to the $25,000 allotted, but deny the remaining $15,000, which could leave you vulnerable to a lawsuit for the remaining amount.
While most states require liability coverage, not all require uninsured motorist coverage. If someone causes an accident with you, provides false insurance information or does a hit-and-run, finding proper insurance details may be difficult or impossible. If you do not carry uninsured or underinsured motorist coverage, your claim could be denied.
If the at-fault driver’s insurance denied the claim, there could be several reasons why. Examples of why the at-fault driver’s insurance may have denied a claim include providing incorrect insurance details or not having enough or the right coverage. Additionally, if an accident occurs in a no-fault state, you are responsible for paying for your medical expenses up to your policy’s limits.
How do I avoid a car insurance claim denial?
The best way to avoid having to deal with a claim denial is to do what you can to ensure that there isn’t one. But how? There are several strategies you can try to make it less likely you’ll find yourself with a denied claim.
First of all, take the time to read and understand your policy. Know your coverage limits, and make sure you are aware of any exclusions. Ask an agent if you’re uncertain about anything in your policy. If you do not have uninsured motorist coverage, for example, be aware that you could face out-of-pocket costs if you’re in an accident with one of the roughly 14 percent of U.S. drivers who are on the road illegally without coverage. In addition, pay your premiums on time to ensure that you do not have any lapses in coverage.
If you are in an accident, start to collect information as soon as possible. If you are unhurt and there are witnesses, be sure to take down their contact information. Take as many photos as you can from different angles of the vehicles and their surroundings. Cooperate with the police and first responders, and ask for a copy of the police report to submit with your claim.
Always be honest and transparent when dealing with your insurer, both when you purchase your policy and in any claims communications after an accident. Any misrepresentation or exaggeration on your part could be a reason for a denial.
Finally, avoid reckless and negligent driving, and never get behind the wheel when you have been drinking. In addition to leading to a claims denial, these behaviors could also leave you liable for civil penalties or even jail time.
What to do when car insurance denies your claim
You can appeal the decision if you feel an error has been made in the car insurance company’s claim denial. Most insurance companies have a process in place for you to contest a denied claim. Here’s what to do when car insurance denies your claim, including the steps to take if you want to appeal an auto insurance claim decision on your own:
Gather evidence: Review any documentation provided by the insurance company and gather the evidence you need to appeal. This could include police reports, eyewitness information, photographs, medical reports and other supporting evidence. Make copies of everything to provide to the insurance company so you can keep the originals.
Draft an appeal letter: This letter will spell out why you do not agree with the insurance company’s decision. Make sure you explain why each piece of information was provided in step one, such as any police reports. Provide as much detail as possible, referencing policy information and the claims denial letter as needed.
Consider hiring an attorney: If you are not comfortable taking these steps or want an expert’s opinion, it may be a good idea to hire an attorney. They can review the case and supporting documents to draft a demand letter requiring the insurance company to respond and defend its claim denial. While it may cost you money upfront, it could be a worthwhile expense to have the claim denial overturned if you feel your insurer made the wrong decision.
Understanding the claim denial letter and why an auto insurance company decided not to make a payout is the first step in determining the validity of a denied car insurance claim. Most instances of auto claims denials are valid, although others may not be. In this case, appealing the insurance company’s decision can get the decision reversed or an offer made to cover the damages.
If you are facing a claim denial, it may be helpful to know that you’re not alone. We looked at popular forum website Reddit to see what others are saying about their claim denials. Some comments spoke to the need for accuracy when reporting the accident, while others noted the importance of understanding the limits and exclusions that may apply to your coverage. The following examples are typical of what readers reported.
Reddit user review
Claim denied due to language barrier
“Can the insurance company deny my claim due to not having a recorded statement from their insured (he was admittedly at fault). There is no statement because there is a language barrier, the insured claims he doesn’t have an interpretor, insurance company claims it’s not there responsibility (to get interpretor)….my car is not totaled, just need driver side front and rear doors replaced.”
“I was involved in a car accident. I called the local police after the accident who came and filed a police report. After waiting for the form to be validated I obtained a copy from the DMV and provided it to the insurance. The police issued the other driver a ticket for failure to yield as she was pulling out of her driveway on to the road. I was traveling on the road and was unable to stop or avoid her in time and hit her car in the road. I took pictures of the accident which shows my car pulled over on the road, debris in the road and her car pushed onto the shoulder. I assumed with the police report and my other evidence I would be successful in filing a claim against her insurance.
The insurance company notified that they will not pay for repairs to my vehicle as the other drivers statement does not match mine or the police report. They stated she is working to amend the police report. … I have no collision as my car isn’t worth very much and now have no way to repair it.”
“I made a previous post about my boyfriend borrowing my car to pick up our son and subsequently getting in a wreck (his fault). BF wasn’t on policy- we have always had our own cars with their own policies at different insurance companies- and I didn’t know we are supposed to be on each other’s. Well I sure do now.
I received a letter stating that my insurance (Acceptance) has the right to deny coverage due to him not being listed as an authorized driver- since he and I live together, and there is a clause about household members in my policy that I stupidly didn’t read.”
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Frequently asked questions
No, you are not required to have legal help when you appeal a claim—but it could be helpful in some cases. If you are willing to pay for a lawyer, they can help you go through the facts of the accident and craft a solid letter that may carry more weight with the insurance company. Having said that, if you wish to handle the situation on your own, there is no reason not to. When drafting your letter, just be sure to stick to the facts, avoid any emotional appeal and take the time to be thorough in describing what happened.
The act of appealing a claim should not cause your insurance premiums to increase. But if your appeal results in an approved claim, you may see your premium increase at renewal. In general, the more high-risk your insurance provider deems you to be, the higher your premium will be. If you are involved in an accident, regardless of whether or not you were found at-fault, the statistics show that you are more likely to be involved in another one. This makes you riskier for your provider to insure.
The best car insurance provider depends on your unique insurance needs and personal characteristics. Location, vehicle type, coverage needs and other factors all play important roles in deciding which provider to go with. Most insurance experts recommend that you compare at least three car insurance quotes from multiple insurance companies (for the same types and amounts of coverage) to determine which company is right for you.
Restrictions on the number of times that you can appeal a car insurance claim denial will vary by carrier and state. Most states have a statute of limitations for appealing a decision rather than a limit on the number of times that you can appeal. You may be able to appeal to your insurance company multiple times based on the evidence you provide. If the outcome is not satisfactory, you can consider contacting a public adjuster to advocate on your behalf or file a complaint with your state’s insurance department to act as an intermediary for the dispute.
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Quick citation guide
Select a citation to automatically copy to clipboard.
APA:
Todoroff, N. (2025, June 20). What to do if a car insurance company denies your claim. Bankrate. Retrieved June 21, 2025, from https://www.bankrate.com/insurance/car/insurance-claim-denied/
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MLA:
Todoroff, Natalie. "What to do if a car insurance company denies your claim." Bankrate. 20 June 2025, https://www.bankrate.com/insurance/car/insurance-claim-denied/.
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Chicago:
Todoroff, Natalie. "What to do if a car insurance company denies your claim." Bankrate. June 20, 2025. https://www.bankrate.com/insurance/car/insurance-claim-denied/.
We are an independent, advertising-supported comparison service. Our
goal is to help you make smarter financial decisions by providing you
with interactive tools and financial calculators, publishing original
and objective content, by enabling you to conduct research and compare
information for free - so that you can make financial decisions with
confidence.
Our content is backed by Coverage.com, LLC, a licensed insurance
producer (NPN: 19966249). Coverage.com services are only available in
states where it is licensed
.
Coverage.com may not offer insurance coverage in all
states or scenarios. All insurance products are governed by the terms in
the applicable insurance policy, and all related decisions (such as
approval for coverage, premiums, commissions and fees) and policy obligations
are the sole responsibility of the underwriting insurer. The information
on this site does not modify any insurance policy terms in any way.
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may
impact how and where products appear on this site, including, for example, the order in which
they may appear within the listing categories, except where prohibited by law for our mortgage,
home equity and other home lending products. But this compensation does not influence the
information we publish, or the reviews that you see on this site. We do not include the universe
of companies or financial offers that may be available to you.
The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices.
We’ve maintained this reputation for over four decades by demystifying the financial decision-making
process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy,
so you can trust that we’re putting your interests first. All of our content is authored by
highly qualified professionals and edited by
subject matter experts,
who ensure everything we publish is objective, accurate and trustworthy.
Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price,
customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you.
We guide you throughout your search and help you understand your coverage options.
We provide up-to-date, reliable market information to help you make confident decisions.
We reduce industry jargon so you get the clearest form of information possible.
All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting
accuracy first.
Editorial integrity
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
Our award-winning editors and reporters create honest and accurate content to help you make the right
financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have
editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial
content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and
our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you
make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced
by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked
to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and
dependable information.
How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master
your money for over four decades.
We continually strive to provide consumers with the expert advice and tools needed to
succeed throughout life’s financial journey.
Bankrate follows a strict
editorial policy,
so you can trust that our content is honest and accurate. Our award-winning editors and
reporters create honest and accurate content to help you make the right financial
decisions. The content created by our editorial
staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and
useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison
service. We are compensated in exchange for placement of sponsored products and
services, or by you clicking on certain links posted on our site. Therefore,
this compensation may impact how, where and in what order products appear within
listing categories, except where prohibited by law for our mortgage, home equity
and other home lending products. Other factors, such as our own proprietary
website rules and whether a product is offered in your area or at your
self-selected credit score range, can also impact how and where products appear
on this site. While we strive to provide a wide range of offers, Bankrate does not
include information about every financial or credit product or service.
Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Quick citation guide
Select a citation to automatically copy to clipboard.
APA:
Todoroff, N. (2025, June 20). What to do if a car insurance company denies your claim. Bankrate. Retrieved June 21, 2025, from https://www.bankrate.com/insurance/car/insurance-claim-denied/
Copied to clipboard!
MLA:
Todoroff, Natalie. "What to do if a car insurance company denies your claim." Bankrate. 20 June 2025, https://www.bankrate.com/insurance/car/insurance-claim-denied/.
Copied to clipboard!
Chicago:
Todoroff, Natalie. "What to do if a car insurance company denies your claim." Bankrate. June 20, 2025. https://www.bankrate.com/insurance/car/insurance-claim-denied/.