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Insurance Disputes

Insurance Claims Disputes

Posted by on Sep 10, 2013 in Insurance Disputes | 0 comments

Insurance claims disputes are all too common. Whether the claim is for auto, home, property, commercial, or residential insurance, it is sometimes met with rejection from the insurance companies. Not to mention, these are only a few of the hundreds of possible claims available for people to make.

Claims are rejected/denied for a number of reasons. Unfortunately, there are many cases in which the insurer is simply acting in bad faith, meaning they take improper actions “with the intention of minimizing payment or delaying proper payment” to the claimant, according to the website of Maddux & Kendall P.A. This constitutes a proper dispute against the insurance provider.

Auto insurance claims are commonly rejected and/or mishandled by insurance companies. Though sometimes rejected for good reason, insurers often purposely mishandle claims in order to avoid paying the full amount owed to the client. Free Advice presents some good-faith reasons for auto insurance claims to be denied. The following are a few from their list:

  1. The amount of damage claimed from the car accident exceeds the policy limits on the clients’ declarations page and the insurance company will not cover the excess.
  2. The claimant does not qualify as a named insured under the policy.
  3. There is no coverage on the car insurance policy for the claim presented.
  4. An Uninsured Motorist Claim was made under the claimant’s policy but the other party to the accident was in fact insured.

In general, insurance companies will probably always try to get away with paying as little as possible to their clients. It’s natural that a company wants to minimize its money output, but that doesn’t make it right in the case of insurers. Insurance companies should be on their claimants’ sides when accidents happen. It’s important to know all the options and responsibilities of the insurer before making a claim.

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