What To Do if Your Car Insurance Claim is Denied in Chicago, IL
After a car accident in Chicago, you expect insurance companies to cover your damages—whether it’s your policy or the at-fault driver’s insurance. However, insurance claim denials are common, and you may be left struggling with medical bills, car repairs, and lost wages.
At Staver Accident Injury Lawyers, P.C., our Chicago car accident attorneys understand how frustrating insurance disputes can be. If your claim was denied, you may have options to appeal, negotiate a settlement, or file a lawsuit. Call us today at (312) 236-2900 for a free consultation.
Why Was My Insurance Claim Denied?
When an insurance company denies a claim, it must provide a reason. Common reasons include:
- Disputed Liability – The insurer claims **their policyholder was not at fault**, or **your injuries were pre-existing** and not caused by the accident.
- Policy Exclusions – Some **types of accidents** or damages **may not be covered** under the policy (e.g., intentional acts, “act of God” exclusions).
- Lapsed Policy – If **premiums weren’t paid**, the **policy may have been inactive** at the time of the accident.
- Failure to Notify – If the **policyholder failed to report the accident** in time, the insurance company might **refuse to investigate or pay**.
If your insurance claim was wrongfully denied, you have the right to challenge it.
What Happens If an Insurance Company Denies a Third-Party Claim?
If you were in an accident and the at-fault driver’s insurance refuses to pay, you may have to file a lawsuit to recover damages. Insurance companies are not required to approve every claim—they will investigate liability and may try to avoid paying by shifting blame.
If your insurer denies a third-party claim against you, the other driver could sue you directly. Your insurance company must defend you, but they may also refuse to settle—leaving you exposed to personal financial liability.
To protect yourself, you may need an independent attorney to evaluate whether your insurance provider is acting in bad faith.
Insurance Companies Must Act in Good Faith
Insurance companies are legally required to act in good faith when handling claims. Under Illinois law, insurers must fairly investigate accidents, pay valid claims, and avoid deceptive tactics.
If an insurance company unfairly denies or delays your claim, they may be acting in bad faith. Examples include:
- **Misrepresenting policy terms** to deny coverage
- **Delaying claim investigations** without justification
- **Refusing to negotiate or settle when liability is clear**
- **Denying claims without a reasonable explanation**
- **Offering an unfairly low settlement** that doesn’t cover your damages
If your insurance company violated the law, you may be able to file a bad faith insurance claim against them under Illinois Insurance Code Section 154.6.
How to Appeal a Denied Car Insurance Claim
If your insurance claim was denied, you don’t have to accept it. You can file an appeal with the insurance company, but having an attorney on your side significantly increases your chances of success.
Steps to appeal your denial:
- Review the denial letter – Understand the insurer’s reason for rejection.
- Gather evidence – Collect police reports, medical records, photos, and witness statements.
- Write a strong appeal letter – Your lawyer can refute the denial with supporting documents.
- Negotiate a fair settlement – Insurers often offer low settlements before paying full claims.
- Consider legal action – If the insurer refuses to negotiate, you may have grounds for a lawsuit.
Our Chicago car accident lawyers can handle the appeals process for you, ensuring that insurance companies play fair.
When to Sue for a Denied Insurance Claim
If your claim denial is unjustified, you may be able to sue the insurance company for damages. This is especially true if:
- The **insurance company ignored clear evidence** of liability.
- The **denial violated state insurance laws**.
- The **insurer refused to negotiate in good faith**.
- The **company failed to conduct a proper investigation**.
If your insurance provider acted in bad faith, you may be entitled to additional compensation beyond your original claim.
Contact Our Chicago Insurance Attorneys Today
At Staver Accident Injury Lawyers, P.C., we fight for policyholders and accident victims dealing with wrongfully denied claims. Whether you need to appeal an insurance denial, negotiate a settlement, or sue for bad faith, our Chicago car accident attorneys can help.
We serve clients throughout Chicago, Aurora, Elgin, Hinsdale, Joliet, Naperville, and Waukegan.
Call (312) 236-2900 or use our online contact form for a free case evaluation.
