If you were injured in a car accident in New Mexico, but your insurance claim was denied, that does not have to be the end of the case. Caruso Law Offices has extensive experience dealing with insurance companies. New Mexico car accident lawyers can explain what to do if your car insurance claim is denied. Follow these steps to protect your rights:
Understand the Reason for the Denial
Carefully review the insurance claim denial letter you received from your insurance company. If you did not receive an explanation for the denial, request one. Determining whether the denial is valid or not will be key to deciding how to proceed with the situation.
Some common reasons for denial include:
- The policy was not in place at the time of the accident, such as if the policyholder was behind on premiums.
- The policyholder is determined not to be at fault for the accident.
- The claimant was not covered under the policy.
- Someone else was found to be at fault for the accident.
- There was not sufficient information to determine the validity of the claim.
- The claimant did not seek immediate medical treatment.
- The claim was not filed within an applicable filing deadline.
- The claimant misrepresented facts on the claim.
Just because the New Mexico insurance company cites one of the reasons above does not necessarily mean that it is true.
Consider Whether the New Mexico Insurance Claim Denial Is Bad Faith
Some insurance companies have been known to deny all claims, hoping that claimants will simply give up without a fight. Sometimes, insurance companies send blanket denial letters, point to language that is not in the policy, or repeatedly request information to frustrate the process. These actions may be signs of insurance bad faith.
Insurance bad faith occurs when an insurance company fails to fulfill its legal duty to resolve claims in good faith. If the insurance company is committing bad faith by denying your claim, your New Mexico personal injury attorney can potentially file a lawsuit for damages.
If you win a case for insurance bad faith, you can recover compensation for the original proceeds you should have received through a valid insurance claim, in addition to extra penalties intended to deter similar conduct by insurers in the future.
Provide Clarification
Before you go through the formal process of filing a bad faith lawsuit or appealing the decision, it may be possible to clear up misunderstandings or provide additional information. Your lawyer can help provide this information and provide the leverage necessary to establish that you are prepared to move forward with an appeal if a proper decision is not made in your favor.
Appeal the Decision
The claim denial letter may provide information about how to appeal the decision. If not, you can generally appeal the insurer’s decision to the New Mexico Insurance Commissioner. An appeal requests that an unbiased third party review the case to determine if the denial was proper.
Your lawyer could also file a lawsuit against the insurance company. They may be able to prove that the insurance company violated New Mexico’s insurance code or breached your insurance contract.
Contact Us for a Free Consultation with Our New Mexico Car Accident Attorneys
If you have recently had your insurance claim denied in error, contact Caruso Law Offices, P.C. for help. Call us at (505) 393-3992 or contact us online to arrange your free case review.