How to Dispute a Wrongful Car Insurance Claim Denial
October 14, 2025 Posted In Car Accidents
Dealing with the aftermath of a car accident is stressful enough without having your insurance claim denied. If you believe your claim was wrongfully rejected, you have options to challenge it.
Find Out Why the Claim Was Denied
The first step is to carefully read the denial letter from your insurance company. Every insurer must provide a written explanation for a denied claim, including the specific policy terms they relied on. Common reasons for denials include:
- Missing or incomplete documentation
- Disputes about who was at fault
- Lapsed or unpaid premiums
- Excluded types of damage under the policy
- Delays in reporting the accident
- Allegations of false or inconsistent information
Sometimes, denials are based on simple errors—like missing paperwork or miscommunication. Understanding the exact reason helps you figure out what to correct or challenge.
Review Your Insurance Policy
After reading the denial letter, take time to review your insurance policy in detail. Pay close attention to sections labeled “Exclusions,” “Conditions,” and “Duties After an Accident.” These sections explain what is covered, what is not, and what steps you must take to preserve your claim rights.
Make sure your claim actually falls within your coverage and that you met your responsibilities, such as notifying the insurer promptly or submitting requested documentation. In many cases, claim denials stem from the insurer’s interpretation of the policy, not an actual lack of coverage.
Gather Supporting Evidence
If you believe your claim was denied unfairly, start collecting all relevant evidence to support your position. This may include:
- Photos or videos from the accident scene
- Police reports and witness statements
- Repair estimates and mechanic reports
- Medical records linking injuries to the accident
- Copies of all communication with the insurance company
Organizing this information strengthens your dispute and allows you to address each reason for denial with factual support.
Write a Formal Appeal
Each insurer has its own appeal process, usually outlined in your policy or denial letter. Your appeal letter should:
- Clearly state that you are disputing the denial
- Reference your claim number and date of loss
- Summarize the reason for the denial and why it is incorrect
- Attach supporting documentation or evidence
- Request a written reconsideration of your claim
Be polite and professional, but firm. Keep copies of everything you send, and if possible, submit the appeal by certified mail or through a trackable online portal.
Contact the California Department of Insurance
If your appeal is denied again or ignored, you can file a complaint with the California Department of Insurance (CDI). The CDI reviews complaints against insurers to ensure they follow state laws and treat policyholders fairly.
You can submit a complaint online through the CDI website or by mail. Be prepared to provide your claim number, denial letter, and any correspondence with the insurance company. The department may investigate and require the insurer to respond directly to your complaint.
Hire a Car Accident Lawyer
Sometimes, even a well-prepared appeal is not enough to change the insurer’s mind. When that happens, having an experienced car accident lawyer can make a significant difference. They understand how insurance companies interpret policy language and can identify when they act in bad faith. A Riverside car accident attorney can communicate directly with the insurer on your behalf, help strengthen your claim, and file a bad-faith lawsuit if the insurer continues to act unfairly.