State Farm is the largest insurance company in the United States, with over 94 million policies, 64% of which are auto insurance policies [1].
Unfortunately, State Farm denies thousands of auto insurance claims per year, leaving car accident victims with significant challenges during their recovery. An experienced auto injury lawyer will fight for your rights and give you the best chance at fair compensation for your injuries, ensuring you have money to recuperate in comfort.
Common Reasons for Denial by the Insurance Company
If State Farm denies your car accident claim, several potential reasons may be listed in your denial letter.
Common reasons for an initial insurance claim denial include insufficient evidence, disputed liability, or a lack of coverage for specific car accident expenses. For example, having more than one at-fault driver in a car crash can complicate the claims process and lead to denials.
The Denial Letter
If your claim was denied, a State Farm representative will send you a letter explaining why the claim was rejected and what you can do to appeal State Farm’s decision.
This letter will provide the specific reason your claim was denied by State Farm. If the policy does not cover that type of accident, the letter should list where this is explained in the policy statement. If they require additional evidence or believe it was inaccurate, it will describe what is missing or why they feel the evidence provided does not match the circumstances.
A car accident attorney will utilize this letter to identify the required evidence and open negotiations with the insurance company to appeal the denied State Farm claim.
What to Do if Your Claim is Denied by State Farm
If State Farm denies your car accident claim, you have options for recourse, including appealing the decision. A car accident lawyer can help you develop a convincing appeal letter and speak to insurance agents on your behalf, improving your chances of success.
Review Your Policy
Car insurance companies, including State Farm, deny claims that do not match the specific circumstances outlined in their policy. For car accident cases, some policies may not cover lost wages, only property damage and bodily injury. If you have collision coverage, this will only cover car repairs for your vehicle, not medical costs for you or your passengers.
As such, you must carefully review the insurance policy to understand what is and is not covered and any exclusions. This liability may be challenging if you are making a third-party claim. Thankfully, an experienced attorney can review the specific policy’s benefits statement and identify its exclusions.
Gather Evidence
State Farm and other insurance companies may deny a claim if it does not include all the necessary evidence for the claims adjuster to make a decision. This proof can include documentation of medical expenses, vehicle repairs, and any other bills related to the car accident.
Additionally, you must have evidence that the accident happened as stated in your claim and that your medical bills are directly related to the accident. This supporting evidence can include police reports, photos of the accident scene, medical records, and witness statements.
Contact State Farm
If State Farm decides to deny your claim, you or your personal injury attorney can contact the company directly. The State Farm claims adjuster should explain the insurance company’s position on why your claim doesn’t fit the policy and what you can do to appeal this decision.
Appealing a Car Accident Claim Denial
In most cases, when State Farm denies claims, you can appeal the decision and demand a second look. This process is complex and has quick deadlines, so you should contact a skilled lawyer as soon as you have a claim denied.
The Appeals Process
Usually, you have 30 days to appeal a denied insurance claim, though the exact deadlines will vary by state and provider. Your denial letter should state how long you have to submit your appeal. When appealing, you will write an appeal letter stating why you believe the insurance claim should have been approved and providing clear supporting documentation.
Writing an Appeal Letter
A compelling appeal letter will clearly state why you are disputing the denial. For example, if State Farm denied your claim because the policy doesn’t cover certain costs, but you find evidence that refutes this, your letter should mention so in the benefits statement.
In other cases, a claim might be denied because the company feels there was insufficient evidence. You must show that you have the documentation required, like medical bills or repair invoices.
The more specific your letter, the better your chances of success. Your personal injury lawyer will assist you in writing a strong appeal letter with the exact information that State Farm will need to review the claim.
Supporting Documentation
When submitting your insurance claim, you should have included information like the crash report, medical expenses, and car accident photos. However, if State Farm denies your initial claim, you will need additional evidence to strengthen your claim.
This evidence can include expert opinions from medical doctors and insurance law experts and extra witness statements or documentation, like surveillance footage.
Supplemental documentation can often be difficult for the average person to acquire, which is where a car accident lawyer comes into play. Utilizing our network of professional contacts, we can find experts who can provide their impartial opinions on why your State Farm claim should be approved.
For example, State Farm representatives may claim that your injuries were due to a pre-existing condition, particularly for issues like slipped discs or neck injuries. Our law firm can ally with unbiased medical professionals who will review your records and confirm that you did not have these conditions before the car crash, bolstering your claim.
Negotiating with State Farm
Paying claims takes money from State Farm’s bottom line. Denying claims that do not precisely match the policy’s stipulations is in the company’s best interest.
When negotiating with State Farm adjusters, prepare thoroughly by gathering all evidence supporting your claim. Research similar cases to determine your claim’s value. Stay calm and professional, as emotion can hinder effective negotiation.
Don’t accept the first offer, which is often lower than what the company is willing to pay. Consider legal representation, especially for complex claims, as an attorney can often negotiate more effectively.
The Role of a Lawyer
As one of the largest insurance companies in the United States, State Farm also has a dedicated team of agents, adjusters, and lawyers who work to deny claims and prevent car accidents from harming the company’s bottom line.
As such, victims need legal representation to counter these State Farm representatives and give them the best chance of recovering compensation.
An experienced car accident lawyer will use their negotiation expertise to counter the company’s arguments about the denied claim. The primary tool in a lawyer’s arsenal is ample evidence, including documentation of the insurance policy and the car accident itself. We can demonstrate how the policy proves they are responsible for your financial compensation.
Additionally, we will use tools like an injury multiplier, which companies like State Farm use to show how much compensation is expected in cases like yours.
An insurance company may also try to stall until the deadline has passed. A car accident lawyer will push for clear and prompt communication, refusing to let State Farm run the clock out on your claim. We will issue a demand letter that provides clear deadlines for when we expect a response, which sets the groundwork for successful negotiation.
Legal Action and Litigation
During your free consultation with our firm, your car accident lawyer will explain the process, including what steps we can take if an appeal is unsuccessful.
One is mediation, where a neutral third party attempts to find common ground with all parties involved and reach a satisfactory conclusion. If this fails, we can also file a personal injury lawsuit against State Farm, which allows a court of law to decide on a fair settlement.
Filing a Lawsuit
Most personal injury cases are resolved out of court through negotiations. However, if State Farm refuses to provide a fair settlement, we will represent you at trial.
Our legal team will first make a formal appeal to secure compensation following the insurance policy. Failing this, we may pursue a car accident lawsuit, where a jury will decide on a fair settlement.
Your car accident attorney will file a suit with the correct jurisdiction and gather evidence, including depositions by involved parties. These documents will be shared with State Farm during the discovery process before hearings begin.
After all the evidence has been presented in court, the jury will favor you or State Farm. If they decide in your favor, they will also determine what kind of damages you can receive, which can be both economic and non-economic.
Economic damages include medical costs, lost wages, and property damage. Non-economic damages are for things like pain and suffering and emotional distress.
Bad Faith Claims
If State Farm denies a claim in bad faith, we can take legal action, including reporting them to the state’s Department of Insurance and filing a lawsuit. Bad faith practices are when a company intentionally misrepresents a policy or uses deceptive tactics to justify a denial.
One example is forcing clients to produce more paperwork they may not have or need. They may also ignore messages, causing delays that may lead to the client missing important filing deadlines.
Your personal injury lawyer will present evidence to the appropriate authorities showing why we believe State Farm denied your claim in bad faith. This evidence will include all relevant communications with State Farm representatives.
Secure Expert Legal Counsel!
If your car accident claim has been denied or you’re facing difficulties with your settlement, don’t hesitate to reach out to Rosenfeld Injury Lawyers for help.
Our car accident lawyers understand insurance law and have years of experience negotiating with insurance companies. We’re familiar with the typical insurance settlement in cases like yours and will also partner with trusted experts in various fields to support our appeal.
Our Chicago auto claim lawyers work on a contingency fee basis, meaning that we deduct our legal fees from your settlement; you owe us nothing upfront.
To schedule your free legal consultation, call (888) 424-5757 or use our online contact form.
References: [1] State Farm Insurance