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Can I Sue an Insurance Company for Denying My Claim?

Posted On 09/14/20 by Begam Marks & Traulson, PA

The claims process as someone with a serious personal injury in Arizona can be complicated. You might have a valid claim and proof that someone else negligently caused your injuries, only to receive a claim denial from that person’s insurance carrier. Knowing when a denial is valid and when to fight back by going to trial is something a personal injury lawyer can help you with. A lawyer can also walk you through the court process, if necessary.

How to Appeal an Insurance Denial

An insurance company lawfully must give its reason for denying your claim in Arizona. Read the denial letter you received from the insurance company carefully, or ask the agent in charge of your claim for more details. Common reasons include missed deadlines, incomplete information, lack of medical care and lack of available coverage. If the agent needs more information or proof of your losses, you can supplement your original insurance claim. Submitting more information may be enough to reverse the company’s decision.

If you believe the insurance company made a mistake, you can ask – either over the phone or in writing – for an internal review. Explain why you believe your case warrants another look. The insurance company will send your claim to an internal review panel for a second opinion. The internal review may change the insurance company’s original decision if it agrees that you are eligible for coverage. If not, you can file a complaint with Arizona’s insurance department and continue to the next step.

What Is Insurance Bad Faith?

You may be able to challenge the insurance company’s denial based on a claim of bad faith. Insurance bad faith describes an insurance carrier or one of its agents failing to properly, fairly or lawfully handle your claim. It could refer to unnecessary delays in processing your injury claim or denying your claim without a valid or honest reason. If you suspect insurance bad faith in connection to your claim denial, ask an attorney for advice. You may need a lawyer’s assistance in bringing a bad-faith lawsuit against the insurance provider.

When Should You Go to Court for a Personal Injury Claim?

Your personal injury claim may require a trial in Arizona if the insurance company refuses to work with you to reach a satisfactory settlement. If the insurance company is treating you in bad faith or refusing to offer what your lawyer believes is a fair amount, a trial might be the only way to recover compensation. Going to court could be worth the time and expense by forcing the insurance company to offer a larger settlement for your damages.

Prepare yourself to go to court by gathering as much information as you can about your insurance claim and why it was denied. Keep copies of all letters and emails you received from the insurance company, as well as notes on all phone conversations. It is especially important to keep a copy of the denial letter, as this will explain the company’s reason for the rejection. Print out a copy of the defendant’s insurance policy as well. Then, take all of this information to a personal injury attorney.

Do You Need an Attorney?

Suing an insurance company for denying your claim could result in the compensation you need to move forward after a serious accident in Arizona. Going to trial against an insurance company, however, can be challenging. A lawyer can help you achieve a positive outcome. A legal professional will know how to deal with insurance companies, spot bad faith and combat a wrongful denial. If you need to go to trial, professional legal representation could make the court process easier. Most personal injury lawyers work on a contingency fee basis, meaning no fees charged to you out of pocket for legal services. Talk to an Arizona bad faith attorney right away if an insurer denied your claim.