"No Fault Laws" and Other Reasons Your Compensation Claim May Get Denied...

Your claim for compensation in an accident might get denied. No fault insurance laws may be the reason. Or it could be that the adjuster is trying to pressure you into dropping your claim.



With a reason like no fault insurance, there's not a lot you can do. If the law denies you personal injury compensation from a third party, then that’s usually the end of it.

If the compensation claim is denied for another reason, it's generally something you can argue against. After all, by now you’ve done your research and know what you’re getting into.

Aside from no fault auto insurance laws, a claim might be denied because the adjuster says there's a problem with the policy. Policy problems can be anything from not having enough coverage to having an expired policy. These examples can sometimes be things the adjuster uses as a negotiation tactic. Instead of throwing you a lowball settlement offer, they just try to get your claim to go away altogether.

The first thing to do when faced with a denial is to request written denial information. If the policy has lapsed, then the adjuster will be able to show you proof. If the policy didn’t come with enough coverage, that should also be backed up with evidence.

The simple request for written documentation will show you whether or not the adjuster was bluffing. They’ll lie over the phone in a heartbeat, but they aren’t about to do it in writing. If they deny your compensation claim, but won’t give you a reason in writing, you should take action to force a response.

Write a letter to the adjuster that confirms your conversation, your request for a written explanation and their refusal to cooperate. Keep a copy of this letter in your files. The adjuster's boss won’t be pleased with this, as it'll prove very unfavorable if the claim goes to court.

If you find it's true that the insurance has lapsed or the insured truly wasn’t responsible, you can try to go after someone else. Don’t forget, there may have been more than one person liable in your accident.

In a slip and fall case against a business their insurer may prove that the business had no duty to maintain that part of the property. In that case, you turn your claim towards the property owner.

If there's no on else to file a compensation claim against, but the insurance has lapsed, then talk to a lawyer to see if there's another way you can get the liable party to pay.

Some policies only cover damages up to a certain amount. These amounts are usually state controlled. If you're claiming compensation for twenty thousand dollars and the insurer proves the policy limit is fifteen thousand, you can try to force a settlement for that amount.

This means the adjuster can't deny you damages just because the insured isn’t covered for the total amount of damages. It also means you wouldn't have to defend every last penny of your claim. If you can demonstrate that your damages were above fifteen thousand, the policy maximum, there's nothing the insurer can do except settle for the full policy limit.

If your damages were far greater than the policy limit, then you'll want legal help. A lawyer can help you determine whether or not the liable party has other assets you can bring suit against.

When no fault auto insurance laws don’t apply, the denial of a compensation claim is usually just a crude negotiation strategy. Handle it with care, but don’t let it intimidate you. Just keep showing the adjuster that you do know what you’re doing.

Still have questions about no fault laws or other reasons for compensation claim denials? Click Here.


Find out if you're entitled to a

Custom Search

The accuracy of information on this site is not guaranteed. In some cases information on this site is the opinion of the writer. Nothing on this site should be considered formal legal advice. Click below to read our full User Agreement, Disclaimer and Copyright Information.