Partner at AKD Lawyers
Practice Areas: Insurance Claims
Filing a car insurance claim after an accident in Louisiana can feel overwhelming, especially when your claim is unexpectedly denied. Insurance companies often use complex language and policies to justify their decisions, leaving you confused and unsure of your next steps.
Understanding the most common reasons for claim denials can help you avoid mistakes and prepare a stronger case. In this blog, we’ll break down the ten most frequent reasons why car accident claims get denied in Louisiana and provide actionable tips on what you can do if it happens to you. By knowing the tactics insurers use and how to counter them, you can take control of the situation and improve your chances of getting the compensation you deserve.
1. Coverage Does Not Appl
One of the most common reasons for a car insurance claim denial is that the coverage does not apply to the specific situation. This can happen if the driver involved in the accident was not listed on the policy or if the accident falls under an exclusion.
For example, if you were using your vehicle for business purposes and your policy only covers personal use, the insurance company might deny your claim.
It’s also essential to understand the minimum liability insurance requirements in Louisiana. According to the Louisiana Revised Statutes (La. R.S. 32:866), drivers must have at least $15,000 in bodily injury coverage per person, $30,000 per accident, and $25,000 for property damage. If your policy does not meet these requirements, a denial could be imminent.
“Under Louisiana law, if you’re even 1% at fault for an accident, your compensation can be reduced proportionally.”
To avoid this, review your insurance policy carefully and consult with an attorney to clarify any applicable exclusions.
2. Lack of Evidence
Insurance companies require solid evidence to validate claims. This includes police reports, medical records, witness statements, and photographs of the accident scene. Without sufficient proof, insurers may argue that there is not enough evidence to support your claim, leading to a denial.
Gathering evidence immediately after the accident can significantly strengthen your case. If you are physically able, take photos of the vehicles, road conditions, and any visible injuries. Additionally, getting a copy of the police report can provide an official account of the incident, which is often crucial during the claims process.
“Insurance companies often deny claims citing lack of evidence, but the burden of proof lies with the insurer to justify the denial.”
If your claim has been denied due to insufficient evidence, consulting an experienced car accident attorney can help you gather and present the necessary documentation.
3. Failure to Report to Law Enforcement
In Louisiana, you are legally required to report any car accident that results in injury, death, or property damage exceeding $500 to the police. Failing to do so can lead to an automatic denial of your insurance claim. Insurance companies rely on police reports to verify the details of an accident, such as the time, location, and the parties involved.
“Failing to report a car accident to law enforcement can lead to a direct denial of your insurance claim, making it critical to comply with reporting requirements.”
To protect your claim, make sure to file a police report as soon as possible after an accident. The report serves as an official record and can help clarify liability if the other party disputes your version of events.
4. Policyholder Not At Fault
Insurance companies often deny claims if they determine that their policyholder was not at fault. This is especially common in cases where the fault is disputed. Louisiana follows a pure comparative fault rule, which means that your compensation can be reduced based on the percentage of fault assigned to you.
For instance, if you are found to be 20% at fault for the accident, your compensation will be reduced by that percentage. Insurance adjusters often leverage this rule to minimize payouts or deny claims altogether. In such cases, an attorney can help gather evidence to challenge the insurer’s findings.
5. Pre Existing Injuries
If you have pre existing injuries, insurance companies may argue that your current injuries were not caused by the accident but are instead related to previous incidents. This is a common tactic to deny or reduce claim payouts.
However, under Louisiana law, you are still entitled to compensation if the accident aggravated a pre-existing condition. Detailed medical records that clearly distinguish between old and new injuries are essential to counter this argument. An attorney can work with your healthcare providers to document how the accident worsened your condition.
6. Administrative Errors
Insurance companies sometimes deny claims due to administrative errors such as missed deadlines, incomplete forms, or incorrect information. While these errors might seem minor, they can provide insurers with a convenient reason to deny a claim.
To prevent this, submit all required documents promptly and double-check for accuracy. If an administrative error leads to a denial, an attorney can help resolve the issue by communicating directly with the insurance company.
7. Claimant’s Contribution to the Accident
Louisiana’s pure comparative fault law allows insurers to deny or reduce claims if they can prove that you were partially responsible for the accident. Actions like speeding, distracted driving, or other traffic violations can weaken your claim.
Suppose you suspect that the insurance company is unfairly assigning fault to you. In that case, a legal professional can help gather evidence to challenge their findings and ensure you receive a fair evaluation.
8. Failure to Seek Medical Treatment
Delaying medical treatment after an accident can lead to a denial of your claim. Insurance companies may argue that your injuries are not severe if you do not seek immediate care. To counter this, visit a healthcare provider as soon as possible and keep detailed records of all treatments and prescriptions.
9. Overvalued Claims
Insurance companies often deny claims that seem inflated or unsupported by evidence. It’s essential to accurately document all expenses related to the accident, including medical bills, repair costs, and lost wages. Consulting professionals for accurate estimates can prevent your claim from being perceived as overvalued.
10. Statute of Limitations
In Louisiana, you have one year from the date of the accident to file a personal injury claim. Missing this deadline typically means losing your right to compensation. It’s advisable to consult an attorney well before the deadline to ensure all paperwork is filed on time.
Reasons for Denial vs. Solutions
| Reason for Denial | Recommended Solution |
| Coverage Does Not Apply | Review policy for exclusions and consult an attorney. |
| Lack of Evidence | Gather police reports, photos, and medical records promptly. |
| Failure to Report to Law Enforcement | File a report immediately post-accident if damages exceed $500. |
| Preexisting Injuries | Obtain detailed medical documentation distinguishing new injuries. |
| Administrative Errors | Double-check all forms and deadlines, seek legal assistance if needed. |
Frequently Asked Questions (FAQs)
Why do car insurance claims get denied in Louisiana?
Car insurance claims can be denied for reasons such as insufficient coverage, lack of evidence, administrative errors, or the policyholder’s fault. Understanding the exact cause is the first step to disputing a denial.
Can I appeal if my car insurance claim is denied?
Yes, you can appeal by providing additional evidence or correcting any mistakes. Consulting an attorney can strengthen your appeal.
How long do I have to file a claim after a car accident in Louisiana?
Louisiana has a one-year statute of limitations for personal injury claims, making it important to act quickly.
What evidence do I need to support my car accident claim?
Key evidence includes police reports, medical records, photographs of the accident scene, and witness statements.
Does Louisiana’s comparative fault law affect my claim?
Yes, if you are found partially at fault, your compensation can be reduced according to your share of fault.
What should I do if my insurance company denies my claim without a valid reason?
Seek a copy of the denial letter, understand the reasons stated, and consider legal action for bad faith if the denial seems unjustified.
Conclusion
Facing a denied car insurance claim can be frustrating, but it doesn’t have to be the end of your fight for compensation. By understanding the common reasons behind claim denials, you can take proactive steps to strengthen your case and avoid pitfalls. It can make all the difference to collect reliable proof, get prompt medical attention, and speak with an experienced lawyer. If you’re struggling with a denied claim, the team at Alvendia, Kelly & Demarest is here to help.
With a deep understanding of Louisiana’s insurance laws and a commitment to fighting for your rights, our attorneys can guide you through the whole process and work hard to secure the compensation you deserve. Don’t let a denial discourage you—reach out today for a free consultation and take the first step toward protecting your rights.
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In 2003, after being dissatisfied with the quality of legal care for victims of car accidents, Roderick ‘Rico’ Alvendia sought to establish a new firm focused on providing high-quality legal services to aid injured victims and their families. J. Bart Kelly, sharing Rico’s passion for upholding justice, joined the firm later that year, and established a partnership.
