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My Car Was Hit and Their Insurance Won’t Pay

Gama Law Firm LLC  May 8, 2024

The moment you step out of your parked car to face the reality of a collision is the starting point of a stressful story—insurance claims, repairs, and potential medical concerns.  

An additional layer of anxiety might be added to that mix if you find that, despite the incident not being your fault, the at-fault driver's insurance is delivering the funds you need.

Because Colorado is an at-fault insurance state (i.e. tort state), the burden of paying for damages lies on the insurance company of the driver at fault in an accident. This means that if you find yourself in a situation where your car was hit and their insurance won't pay, it's critical to understand your rights and options. 

If you've faced this dilemma, or are worried you might, take a breath. You're not alone in this predicament. Our car accident legal team at Gama Law Firm LLC is here to help map out a clear route forward. 

Your Options When the At-Fault Party's Insurance Won't Pay

When the insurance company of the driver at fault denies a valid claim, it can be a difficult pill to swallow. But it's important to keep in mind that you have the right to compensation. And you have the right to explore your legal options. These include: 

  • Filing a Lawsuit: Pursuing legal action might be necessary to receive the compensation you deserve, but be prepared for a complex and time-consuming process. 

  • Seeking Mediation or Arbitration: These alternative dispute resolution methods can sometimes lead to a quicker and less costly resolution. 

The approach you take should be a thoughtful decision, based on the details of your case and the extent of damages involved. Working with an experienced car accident attorney in your area can help you fully understand your options and choose the best course of action. They can also negotiate with low-balling insurance companies on your behalf, so you can focus on getting your life back on track. 

But First, Figure Out Why Your Claim Was Denied

Identifying the reason behind your claim's denial is the first step toward formulating a strategy to contest it. Common reasons for car accident claim denials include: 

  • Policy Exclusions: Insurance policies come with exclusions that detail the circumstances under which coverage is not provided. It's possible that your incident falls under one of these exclusions. 

  • Lapsed Insurance: If the at-fault party's insurance policy was not active due to non-payment or cancellation, the insurance company would not cover the claim. 

  • Disputed Liability: The insurance company might argue that their policyholder was not at fault, or they may claim that your negligence contributed to the accident. 

  • Insufficient Evidence or Documentation: A lack of proper evidence documenting the accident or your injuries can lead to a denial, emphasizing the importance of thorough documentation. 

  • Delayed Claim Submission: Failing to file the claim within the insurance company's specified time frame can result in denial.  

Understanding the specific reason for your claim's denial is crucial. It enables you to address the issue directly, whether by gathering additional evidence, clarifying misunderstandings, or adjusting your legal strategy accordingly. 

Tips for Dealing With the Other Party's Insurance

Communicating with the at-fault party's insurance company is often where many claimants falter. Insurers can use aggressive tactics to reduce their payout or deny claims altogether. When interacting with these companies, remember: 

  • You're Not Obligated to Give a Recorded Statement: If they request one, it's in your best interest to consult with a legal professional first. 

  • Review All Correspondence Carefully: Ensure that the information aligns with the incident as you remember it. 

  • Stay Focused on Facts, Not Faults or Blame: Un-emotional, clear communication about the incident can strengthen your case. And stick with facts, not opinions or guesses.

Tips for What to Do After a Car Accident to Ensure a Smooth Claims Process

The moments, days, and weeks after an accident are crucial for your claim's success. Immediate action should include: 

  • Seeking Medical Attention: Getting evaluated by a medical professional (ER, Urgent Care, or even your primary care provider) is the most important thing to do after a car or truck accident.  

  • Reporting the Accident: Ensure that a police report is filed, if appropriate, and contact your insurance company to initiate the claim process. 

  • Gathering Evidence: If possible, take lots of photographs at the scene of the accident and collect contact information for any witnesses.   

These early steps can help you provide airtight proof of the details of the accident, which can be crucial in battling an insurance denial. 

Understanding Your Insurance Coverage in Colorado

In Colorado, one of the best things you can do to protect yourself is to thoroughly understand your auto insurance policy. When you purchase or renew your insurance, these agreements tend to be voluminous and full of terminology that can be complex to the layperson. However, knowing the specifics can make a world of difference during these chaotic times. 

Your policy typically includes provisions for: 

  • Liability Coverage: This is what your insurance will pay the OTHER PERSON when you are at fault for an accident. 

  • Uninsured and Underinsured Motorist: This is what your insurance will pay YOU when someone else is at fault but they either do not have insurance or do not have enough insurance. This coverage should be the same amount as your "liability" coverage because you want to protect yourself as much as you protect other people.

  • Medical Payments (Med Pay): This pays you for your "out-of-pocket" medical expenses regardless of who is to blame for the accident. If you have good health insurance, Med Pay coverage is probably not necessary.  

  • Comprehensive Coverage: Damages due to non-accident circumstances, like theft or falling objects. 

Always review your deductible for each type of damage and consider your policy limits. When your policy doesn’t cover everything you need, that’s the time to file a claim against the other party’s insurance. And when they still won’t pay, an experienced personal injury lawyer can help you fight for the compensation you deserve. 

How Legal Counsel Can Benefit You & Your Case

In cases where the at-fault party's insurance denies your claim, seeking legal advice is often the next logical step (and the consultation is FREE). A lawyer experienced in personal injury and negligence can offer you: 

  • Guidance on the Validity of Your Claim: Sometimes what seems like a clear-cut case might have nuances that only a legal professional can spot. 

  • Representation in Negotiations or Litigation: An attorney can fight for you against the insurance company or in court. 

  • Peace of Mind and a Path Forward: Understand that while none of this minimizes the stress of the situation, having someone in your corner can help you focus on your recovery and moving forward. 

Reach Out to Gama Law Firm in Denver for Help

If you find yourself in the disheartening situation of battling insurance companies that won't budge, remember: you don't have to fight this battle alone. When you need assistance with car accident claims or insurance disputes, reach out to Gama Law Firm LLC and talk to us at no charge.

Our car accident attorneys' extensive experience in handling Colorado car accident cases can be a valuable asset in your pursuit of fair compensation. Contact us today to schedule a consultation and begin reclaiming what's rightfully yours. Our Denver lawyers work with accident victims throughout Aurora, Parker, Centennial, Castle Pines, and other Colorado communities.