What if the At-Fault Driver’s Insurance Won’t Pay: Options for Recovery

You performed all the steps correctly, from gathering info to getting a police report during your accident. Even then, their insurance may give a low settlement offer, or even deny your claim outright. If the at-fault driver’s insurance won’t pay for your damages, you have legal options to properly settle your case.

The at-fault driver’s insurance is looking for every reason to avoid paying your full damages to protect their profits. If your car was hit and their insurance won’t pay their full amount, force their hand by hiring an auto accident attorney.

Key Reasons an At-Fault Driver’s Insurance Won’t Pay

If the other at-fault driver’s insurance denies your claim or is uncooperative, don’t panic. It’s important to find out why your claim was rejected and here are several reasons an at-fault driver’s insurance won’t pay out.

1. Contesting Fault

Car accident cases can get complicated, and the at-fault drivers’ insurance may not settle because they believe you’re partially at-fault.

Cases can get messy when multiple vehicles are involved, significant injuries were sustained, evidence conflicts, etc. It may proceed to a lawsuit and stretch your claim even further than anticipated.

When the at-fault driver’s insurance won’t pay because they’re contesting fault, that makes hiring an attorney even more crucial. Make sure fault is properly established and your side is represented so you have the highest chances of recovery.

2. Insufficient Insurance Coverage

Another reason the at-fault driver’s insurance won’t pay may be that they’re uninsured or underinsured. If the at-fault driver doesn’t have insurance or is underinsured, you may file an uninsured motorist (UIM) claim if you have that coverage under your policy.

According to the Insurance Information Institute (III), the estimated percentage of uninsured motorists in recent data for 2017-2022 has increased from 11.6% to 14%. About one in seven drivers, as studied by the Insurance Research Council, were uninsured.

UIM helps cover the difference between the at-fault driver’s limited coverage and the full expense of your damages and loss. In the unfortunate event you don’t have UIM, you should seek a lawyer who may give you legal alternatives.

3. Policy Exclusions

Insurance companies may not pay you if the at-fault driver policy has certain exclusions that affect your claim’s payout. For instance, if the at-fault driver was driving under the influence, on-road racing, intentional acts, etc.

In this scenario, seek an attorney to help you sue the at-fault driver directly if insurance won’t cover it.

4. Blaming Damages on Pre-Existing Conditions

Sometimes, insurance companies won’t pay because they believe your injuries and damages already resulted from pre-existing conditions.

For example, a back injury from a rear-end collision may have instead been an injury from work. Insurance companies may find reasons to believe your injury was sustained elsewhere and not pay you a full settlement.

That’s when gathering evidence is key to connect your injuries to your accident.

5. Lack of Evidence

Insufficient evidence may also be another reason the at-fault driver’s insurance won’t pay you. The insurance company needs proof the other driver was at-fault for hitting your car.

Failing to document evidence, testimonies, driver information, or failing to report the incident immediately could affect your claim settlement.

Therefore, it’s important to understand why your claim was rejected to follow up on the appeals process. Insurance denials may be caused by bad faith practices aimed towards minimizing settlements. A lack of evidence is especially harmful if the at-fault driver falsely claims you hit their car.

You deserve to know your rights and understand these legal grounds before proceeding to override the outcome.

What to Do if Your Car was Hit and Their Insurance Won’t Pay

If their insurance won’t pay you and the other driver was at-fault for hitting your car, consider taking these steps.

Find Out Their Reason for Denial

Find out why they denied your claim so you can properly address their reasons in your appeal. You can request a written explanation from the at-fault driver’s insurance highlighting why they withheld damages.

If you strongly feel you should get compensated, you must gather evidence specifically refuting the reasons they highlighted.

Grounds like contesting fault, damages blamed on pre-existing conditions, or lack of evidence may be their reasons for denial. You can investigate the matter further and get more solid evidence for your case.

Build a Solid Foundation of Evidence

After understanding the reason for denial, you should build a solid foundation of evidence to support your claim. Your evidence may include:

• Further medical documents
• Eyewitness testimonies
• Police reports
• Proof of lost income for missed work

You need solid backing before writing an official demand letter refuting their denial.

Submit an Official Demand Letter

Once you’ve gathered evidence, you can submit an official demand letter to the insurance company explaining why you deserve a settlement for your loss. Include all evidence and try negotiating with the insurance company with an attorney.

Work With an Attorney Throughout the Process

If the insurance company is uncooperative or continues to deny your claim, you should consult an attorney. A legal specialist can assist you during the process so they can guide you throughout your appeal.

File a Complaint With Your State’s Department of Insurance

You may also file a complaint with the State Department of Insurance so they can mediate between you and the insurance company if they aren’t responding. They can force a meeting between parties if nothing is being resolved.

Prepare for Litigation if the At-Fault Driver Still Refuses to Pay

If the insurance company continues to avoid your payout and denies your claim, you may proceed with the litigation process. An attorney would guide you through the auto settlement timeline and represent you in court if needed.

In most cases, filing a lawsuit should be done within two years. However, you should look up your state’s laws and statute of limitations so the courts won’t bar your case. The defendant has up to 30 days to file responses when you file.

Avoid These Bad Faith Practices From Insurance Adjusters

Sometimes, it’s difficult to discern an insurance adjuster’s use of underhanded tactics to lowball your settlement or avoid a payout. Some tactics commonly used are:

• Long delayed responses and dragging out claims
• Requesting an excessive amount of repetitious documents
• Illegitimately denying claims
• Unfair first initial settlement
• Failing to communicate with the policyholder
• Falsifying or concealing policy information
• Denying claims without a valid investigation or permitted jurisdiction

If you experience these tactics with the insurance adjuster, consult an auto accident attorney immediately. The insurance adjuster may avoid paying you or minimizing your settlement to protect the company’s profits, rushing the claim process due to high claim volume, etc.

Fight for Your Rights With an Auto Accident Attorney

If you were involved in an accident that was not your fault, fight for your rights with an auto accident attorney. LegalASAP can assist you with a network of experienced attorneys and can help match you to the right attorney suited for your claim.

Submit a free evaluation form and see if your claim qualifies for an attorney. Don’t hesitate and delay your possible payout. Call our department at 888-927-3080 for other questions or concerns you may have.