Reasons Insurance Companies Deny Car Accident Claims | Staver Accident Injury Lawyers, P.C.
legal blog

Reasons Insurance Companies Deny Car Accident Claims in Illinois

Written by Jared Staver

Read Jared's Bio

Jared Staver is a Personal Injury Lawyer based in Chicago, Illinois and has been practicing law for over 20 years.

Jared Staver

CATEGORY: Auto Accidents, Insurance

Car accidents can interrupt your life. You might expect insurance companies to help cover the costs after a collision. Insurance companies are notoriously unreliable. Many providers will work to reduce what they owe or deny a claim outright.

Why are they allowed to do that? Isn’t it an insurance company’s job to help a crash victim pick up the pieces? These companies are for-profit institutions looking out for their shareholders’ bottom line. In short, insurance companies will try to avoid paying settlements of any kind. Continue reading to learn more about how they try to deny claims.

Common Reasons Insurance Companies Deny Chicago Car Accident Claims

Insurance companies will work within the bureaucracy to avoid paying settlements. If they can find a reason to deny your claim, they may attempt to leave you on the hook for costs their policyholder created in a car accident.

Some reasons insurance companies deny Chicago car accident claims include:

Your Claim Exceeds a Policy’s Limits

In Chicago, drivers are expected to buy minimum insurance to legally drive. Illinois requires drivers to purchase $20,000 of property insurance per accident, $25,000 of liability insurance for the injury or death of one person, and $50,000 of liability insurance for the injury or death of more than one individual per accident.

If the accident’s damage exceeds the policy’s limits, an insurance company may deny your claim.

The Policyholder Doesn’t Have the Proper Coverage

Insurance policies consist of different kinds of policies. Illinois requires drivers to purchase property damage and liability or bodily injury. Property insurance will cover the cost of the damage to another person’s property you caused while driving. Liability insurance will cover the costs of your injuries or your death in the event of a crash.

The damage caused by the car accident may not fit under the policy the at-fault driver has. Your claim could be denied because the insurance company argues the damages aren’t compatible with the coverage.

Failing to List Someone on the Insurance Policy

Most insurance companies require policyholders to report all family members above the age of 14 who live in the household. If a person not listed on a person’s insurance account is involved in a collision, repair costs and other expenses may not be covered. Businesses want to minimize risk. They only care about their bottom line, doing everything in their power to prevent their company from losing money.

If you have a new household member, you must often list them on your insurance policy as well. For example, if a stepchild moves in or you adopt a child who is of age to drive a car, you should report them as living within your household. Otherwise, the insurance company may deny the claim, leaving you responsible for all injuries and losses.

Breaking the Law

Insurers may deny a claim if the at-fault driver was not following the law. For instance, if a driver didn’t have a valid license or was drinking while driving, their insurance company may deny your claim.

Using a Personal Vehicle for Business Purposes

Another reason that car accident claims are denied involves how account holders use their vehicles. If a person crashes their car while using their vehicle for business purposes, it is likely that their claim will be denied. From the perspective of the insurance company, using a vehicle for both business and personal use puts the driver at a higher risk of being involved in an accident. Most insurance companies require policyholders to obtain a special endorsement when a vehicle is being used for work purposes.

Failing to Evade an Avoidable Accident

If the accident in which you were involved is deemed to be your fault and it was avoidable, your insurance company may deny your claim unless you have proper coverage. Comprehensive coverage will cover your losses; however, if you only had liability coverage and the accident is determined to be your fault, your claim may be denied.

If an insurance company denies your claim and it was the other driver’s fault, you should immediately seek legal help. Liability insurance should cover your losses even if the accident could have been avoided by the other driver.

Your Claim is Fraudulent

After a car accident, you’re going to be looking for any assistance you can get to help rebuild your life and recover comfortably. However, that does not mean you can lie to insurance companies to get more money.

An insurer could deny your claim if they can prove you weren’t honest about the circumstances of the crash or if you lied about the expenses the crash created.

Find Out How Our Car Insurance Lawyers Can Help

Even though insurance companies claim to be helpful, they are usually only helping their shareholders. If you’re expected to cover the damages caused by someone’s negligence, you need an experienced Chicago car insurance lawyer to pursue compensation.

The Staver Accident Injury Lawyers, P.C. have experience working with drivers injured by reckless drivers. We’ve helped clients recover millions in compensation after an accident has disrupted their life.

We understand how traumatic a car accident is, and we’re prepared to help you file a claim with an insurance company to recover what you’re owed. We will investigate your crash, find the liable party, and ensure the insurance company pays.

We are ready to help you. Call (312) 736-0734 or contact us online to see how we can help.


Free Consultation
(312) 236-2900
(312) 236-2900
Skip to content