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Car Accident Insurance Claim Denials in No-Fault States


If you live in a no-fault state, you may think you’ll be able to rely on your insurance company in the event that you are injured in a car accident. Without the need to prove fault or negotiate with the other driver’s insurance company, you may feel confident in your ability to recover compensation from your own insurance provider.

Unfortunately, this is not always true. It is possible that your own insurance company will deny your claim.

Reasons for Claim Denials

In general, car accident claims are usually denied because of policy limitations or the policyholder’s failure to follow certain processes. Every insurance policy has parameters for what is covered, and requires that the policyholder files their claim correctly. Anything that contradicts the terms of an insurance policy could be the reason for a claim denial.

Car accident claims can also be denied if the insurance provider believes that their policyholder is being dishonest about aspects of their claim. Although liability is not usually relevant, your insurance company may deny coverage by attempting to minimize or deny your claims about damages.

Your insurance company may deny your car accident claim because:

  • Your policy does not cover your injuries or the type of accident
  • Your premiums are unpaid
  • You did not report the accident in time
  • They believe an accident did not cause your injuries or damages
  • They believe you are exaggerating your injuries or damages

What is Insurance Bad Faith?

Insurance “bad faith” is a legal term that defines instances on which an insurance provider uses questionable practices. In no-fault states, an insurance company could use bad faith practices as a way to deny their own policyholder’s claims.

Examples of insurance bad faith may include:

  • Dishonesty about policies and coverage
  • Delaying claim processes
  • Unjust claim denials
  • Undervaluing a claim

What Should I Do if My Car Accident Claim is Denied?

There are some circumstances in which an insurance company has a fair reason to deny a claim, such as when a claim isn’t filed on time. However, your insurance provider may have denied your claim for an unjust reason and is engaging in bad faith practices.

In cases of bad faith, you may have a case against your insurance provider. If your insurance company denied your car accident claim, contact Belushin Law Firm, P.C. Our legal team can investigate why your claim was denied and pursue the compensation you deserve.

Send us a message or call (888) 918-9890 to schedule a free consultation with our attorneys.