Why do people make mistakes when filing insurance claims?

On Behalf of The Law Offices of Goldfine & Bowles, P.C.

March 22, 2021

No driver, bicyclist, or pedestrian wishes to be the victim of an auto accident. However, accidents do occur, and they may lead to injuries or worse. Sometimes, the driver might hit a divider or another object, leading him or her to file a collision claim to cover damage to the vehicle. Persons hit by uninsured motorists in Illinois might seek to file an appropriate claim on their policies. Perhaps the car ends up totaled, and a significant balance remains on the financing.

Insurance companies and claim denials

Some might feel that an insurance company could seek to protect its interests rather than pay a claim. In truth, if the policyholder violated the contract’s terms, then a denial may be appropriate. The possibility could exist that the insurance company denied a claim in error. Yet, the policyholder may receive the denial letter and not follow up. Such situations might prove unfortunate since someone with knowledge about dealing with insurance companies could potentially straighten mistakes out.

Other times, the insurance company might seek to settle the offer for less than an adequate amount. The claimant may have no experience with insurance negotiations and could accept the offer. Perhaps that person could have received a more significant settlement amount had someone negotiated for a higher amount.

Additional issues to consider

Lack of familiarity with the insurance claims process might lead to problems when dealing with claim denials. An appeals process exists, one that may lead to overturning the denial. An attorney could handle the appeal or even challenge the actions of the insurance company. If it turns out the insurance company engaged in bad faith, the policyholder may be able to file a lawsuit on those grounds.

Sometimes, retaining an attorney to handle the initial claim could be advisable for those dealing with losses related to car accidents. Denials may result from not providing sufficient evidence or documentation, and an attorney may present such information to the provider in a straightforward manner.