When you purchase car insurance and pay your premiums, you believe that you have secured protection in case of an accident or injury only to find out that the insurer refuses coverage after filing a claim. This means that you have to shoulder hospital bills, medical costs, and car replacement on your own.
When you get your GEICO car accident claim denied, you won’t be able to receive any compensation after an accident. If this happens, it doesn’t mean you have to give up on your claim. There are still other means to get a compensation even after a denied claim.
Here are ways on how you can deal with such a situation.
Appealing a Car Insurance Claim Denial
After denial, the first step you should take is to review the reasons why your car insurance claim was denied. Car insurance companies have a formulated process of appealing a denial. For clarifications, you can ask for help from your insurance agent on the formalities to dispute the insurer’s decision.
If you decide to appeal on your own, here are simple steps you can do so (although it’s not advised as this will only reduce your chances):
- Get to know why the company denied your accident claim application.
- Review all the evidence you had submitted with the claim.
- Write down a letter articulating why the evidence you had collected contradicts the decision rendered by the company.
- Seek legal intervention if you are uncomfortable with arguing the claim on your own.
By appealing, the company will not reverse its decision but will work with you to look into your argument. If your dispute is well supported with facts and the company is ready to start negotiations with you, you should consult an attorney before starting the negotiation process.
Legal Action against Bad Faith Claim Denial
Bad faith is the act of the insurer avoiding to meet its obligations to the insured. In a case of a car insurance claim denial, the bad faith is considered to be an improper valuation of the damaged property, improper investigation to the accident, delayed payment on the claim, or even refusal to compensate the insured. A GEICO car accident claim denial is mainly an act of bad faith.
When you feel that your insurer is treating you in such a way, it is advisable to seek legal actions by consulting with an experienced attorney. This ultimately results in two different legal actions namely:
- Tort – this refers to the refusal of the insurer to pay a valid claim by breaching its duty to the insured. It is considered a civil wrong since it results in an economic injury to the plaintiff.
- Breach of Contract – almost all cases of bad faith claim denial culminate to breach of contract. When the company denies a legitimate claim provided by the consumer, it has broken its promise, hence deserving a legal penalty for the breach of contract.
Despite these legal measures being in place to protect the consumer, the damage compensation depends on your jurisdictions since different states carry out different legal actions on these illegalities.