When your insurance claim is denied, the insurance company has to give you a reason for the denial. Common reasons for denial of claims include:
Disputed Liability — The insurance company may say that their policyholder didn’t cause the accident, or that the accident didn’t cause the injuries or damages you’re claiming.
Policy Exclusions — Insurance policies usually include a laundry list of items that aren’t covered. A lot of people have heard that an insurance policy won’t cover an “act of god,” for example. Another example is intentional actions, which often are not covered by insurance policies. The company may use one of those items on the list, known as exclusions, to say that your accident isn’t covered by their policy.
Lapsed Policy — If the premiums hadn’t been paid at the time of the accident, the policy may have lapsed and the insurance company would say that no coverage existed at the time of the accident.
Failure to Notify — Policyholders have an obligation to notify insurance companies of accidents in a reasonable amount of time after the accident happened. If that didn’t happen, the insurance company may claim it didn’t have an opportunity to investigate the accident and may deny the claim.