Your Legal Leverage Against an Insurance Company That Doesn't Want to Pay

Sometimes you have to do something when your insurance company doesn’t live up to expectations. A contract should be honored, especially when that contract is meant to keep you from going bankrupt. Lawmanaging is a good resource for learning your rights as a consumer. You have leverage, even when an insurance company doesn’t want to pay. 

Your Legal Leverage Against an Insurance Company That Doesn't Want to Pay
[ image: pexels by andrea piacquadio ]

No Is Not Final

Almost sixty percent of claims are denied after the first phone call. The mistake most people make is accepting that first no as the ultimate answer. Claim denials take time, so when you get an unjustified no, it may seem like an eternity has passed. That is just the first part of the process, and the main reason why you should always question your insurance provider when they give you a no. If their answer is insufficient, then you have to keep asking. Although the majority of claims are denied, the majority of insurance claims that go to court are decided in favor of the policy holder.

Ask for A Written Explanation

Over the phone or online claims can seem a bit impersonal. When your insurance company refuses to pay out a claim, get it in writing. If the written statement differs from the one you were given over the phone, then there is a problem. Some states have a law in place that requires companies to provide a written explanation of the denial of claims. When policy holders don’t ask for this information, it gives insurance providers an easy out to continually deny the claim.

Is the Claim Legitimately Denied?

An insurance provider is required to give you warning when they update your policy. Changes are usually mailed out, and may have a negative effect on your claim. Look at your current up to date policy online so that you don’t have to compare changes between the written versions. If an insurer is pointing to a specific clause in your contract, then it should be easy to find.

Filing Errors Are Part of The Game

An insurance company will sometimes use filing errors as a reason to deny a claim. It’s important to follow filing instructions, but incorrect paperwork is not grounds for refusal. Even in a situation where the papers are late, insurers are required to pay out on valid claims. To keep the process speedy, send in all required paperwork on time and double check for errors.

Get A Lawyer

When all else fails, a lawyer is the presence you’ll need. Insurance companies that refuse to pay a claim have no desire to go to court. In the event the court case moves forward, having a lawyer that is up to date on your situation is helpful. Their expertise may be the deciding factor in getting the claim money you deserve.

Wrap Up

Take great care to never waiver when the law is on your side. It may seem like a losing battle, but the end effort is more than worth your time. Make an insurance company pay, and you won’t have to.

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