- 5-15% of auto insurance claims are denied annually in the U.S.
- California, Texas, and Florida lead the nation with the highest volume of denied claims. Ohio in the Top 10
- Common reasons for denial include insufficient or inaccurate information, policy lapses, and reporting delays.
- Experts offer actionable advice to help drivers avoid and address denied claims.
A recent study by accident attorneys Anidjar & Levine reveals that 5-15% of all auto insurance claims are rejected each year, leaving thousands of drivers struggling with unexpected financial burdens.
California leads the nation with an alarming 4,800 complaints, making it the state with the highest number of auto insurance claim denials. Drivers in California face a range of challenges, including delayed payments and contentious settlement disputes. These issues often leave car owners feeling frustrated and financially vulnerable as they struggle to secure the compensation they need and deserve.
Texas ranks second with 4,200 complaints. Common grievances in the Lone Star State include claim handling issues and low settlement offers, which can leave policyholders receiving less compensation than they anticipated.
Florida ranks third, recording 3,800 complaints regarding claim denials. Fraud, uninsured motorists, and delayed settlements keep drivers from securing proper reimbursement after an accident.
Looking at the study, a spokesperson from The Law Firm of Anidjar & Levine, P.A. commented,
“The study identified several common reasons for these denials, including insufficient or inaccurate information, policy lapses, exclusions, late reporting of accidents, disputes over fault, and inadequate coverage. These issues can be avoided through careful attention to policy details, timely reporting, and thorough documentation.
Your auto insurance policy is designed to act as a safety net after an accident, providing financial protection and peace of mind in times of need. However, with the increasing number of denied claims in Florida, this safety net no longer seems to hold as securely as it should”.
Furthermore, the study did unravel some common trends around claim denials. Anidjar & Levine have provided an outline of these trends below to help consumers take proactive approaches when establishing auto insurance policies to avoid claim denials.
Expert suggestions to address common denial reasons:
- Insufficient or inaccurate information: Provide accurate and complete information, including all relevant details about the accident and any damage.
- Policy lapse due to non-payment: Ensure timely premium payments and consider setting up automatic payments to prevent policy lapses.
- Policy exclusions: Review your policy’s exclusions (e.g., using your vehicle for ridesharing) and ensure you have the right coverage for all intended uses of your vehicle.
- Failure to report the accident on time: Report any accident to your insurance provider as soon as possible, ideally within 24 hours, to avoid denial for late reporting.
- Insufficient documentation: Gather and submit thorough documentation, including photos, police reports, witness statements, and repair estimates, to support your claim.
- Fault disputes: Collect detailed evidence of the accident scene to establish a clear fault. A car accident lawyer can strengthen your claim.
- Lack of necessary coverage: Review your policy for adequate coverage options, like collision or comprehensive, to ensure you’re protected in various accident scenarios.
- Policy violation: Follow traffic laws and avoid driving under the influence, as claims may be denied if policy violations are involved in the accident.
Top 10 States with the Highest Auto Insurance Claim Denials and Reasons Behind Them
| States | Complaints | Common Denial Reasons |
| California | 4,800 | Claim denials, delayed payments, settlement disputes |
| Texas | 4,200 | Claim handling issues, low settlement offers |
| Florida | 3,800 | Fraud, uninsured drivers, delayed settlements |
| New York | 3,500 | High premiums, processing delays |
| Illinois | 2,600 | High premiums, delayed processing |
| Pennsylvania | 2,500 | Delayed processing, unsatisfactory settlements |
| Georgia | 2,200 | Claim denials, coverage disputes |
| Michigan | 2,100 | High premiums, delayed claims |
| Ohio | 2,000 | Customer service issues, long processing times |
| North Carolina | 1,800 | Rate hikes, settlement disputes |
Navigating the claims process after a denial can be confusing and cause uncertainty. Personal Injury Attorneys at The Law Offices of Anidjar & Levine, can help provide legal assistance that helps with understanding the process and ensuring your compensation meets your needs.
Provided by The Law Offices of Anidjar & Levine