You have several options if State Farm denies your motorcycle accident claim. Whether the denial occurred because of an honest mistake or because State Farm relied on incorrect or incomplete information, you should not lose out on the compensation you deserve because of its error.
You can do some things to try to get State Farm to reconsider the denial of your claim or other paths you could take to pursue your right to monetary damages from the at-fault party. Remember, State Farm is a massive, multibillion-dollar corporation that employs hundreds of its own attorneys. You do not have to fight them by yourself.
State Farm’s Duty To Act In Good Faith
As the American Bar Association (ABA) explains, insurance companies have a duty to act in good faith when processing claims against their policyholders. A policy is a contract between an insurance company and a policyholder. The policyholder agrees to pay premiums in exchange for the insurance company’s promise to defend them and pay valid claims that fall within a policy’s coverage.
If someone else’s negligence caused your motorcycle accident, and their liability insurance company denies your claim, you could sue the at-fault party and go after their personal assets to satisfy the judgment. It is against public policy for insurance companies to wrongfully refuse to pay valid claims.
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How To Fight State Farm’s Denial Of Your Motorcycle Claim
It would be entirely understandable if you feel anxiety and panic when you read a letter that explains why the at-fault party’s insurance company rejected your motorcycle accident injury claim. You also may wonder how you are going to pay your medical bills and living expenses, particularly if you cannot work right now because of your accident injuries.
You do not have to face the situation alone. A personal injury attorney would likely take these steps in this situation:
- Review State Farm’s denial letter for inaccuracies. The claims adjuster might have misread the police report or relied on untruthful information from the negligent driver. Sometimes, it can be a matter of clearing up a misunderstanding to get the insurance company to admit liability and cover your claim.
- Write a demand letter to the insurer. One of the early steps an injury attorney can take is to write a demand letter to the at-fault driver’s liability insurance company, stating the basis for holding the driver responsible for your losses. Also, a demand letter will inform the insurance company of your claim’s amount and your settlement demand.
- Appeal the denial letter. Some insurance companies have an internal process in which a denied claimant can ask the insurer to take another look at the claim and reconsider the denial. It is best to provide more information with an informal denial appeal to make it easy for the insurance company to see if it made a mistake.
- Enter into negotiations with State Farm. Your lawyer can negotiate directly with the insurance company on your behalf so that you do not have to deal with the process. Most injury cases settle without having to go through a trial. Depending on the facts of your situation, you might be able to get a settlement rather than having to litigate.
- File an injury lawsuit against the careless driver. If your case does not settle within a reasonable time, your attorney might file a lawsuit to protect your right to seek compensation for your losses from the negligent party. Most of these cases still reach a settlement before going to trial.
Every motorcycle accident claim is different because the facts are unique in each case. What works in one case might not work in another, which is why it is a good thing to have multiple options if State Farm denies your motorcycle accident injury claim.
Background Information On State Farm
State Farm has total assets of more than $214 billion and 58,000 employees, according to Insurance Business America. The company began doing business in 1922 and has grown into a massive corporation that offers insurance and financial services. The insurer had more than 84 million policies and accounts as of the end of 2020, including its insurance and financial products.
How Claims On Someone Else’s Policy Differ From Claims Against Your Policy
When someone else causes a motorcycle accident that injures you, you typically file a claim against the negligent party’s liability insurance carrier. However, you might need to file a claim against your automobile liability policy in any of these situations:
- Hit-and-run crashes. If the negligent driver fled the scene illegally, you might need to make a claim against the uninsured motorist coverage of your own automobile insurance policy. Because there is no available insurance coverage from the hit-and-run driver because they left the accident prematurely, insurance companies treat these collisions the same as uninsured motorist accidents.
- Uninsured motorists. Despite what the law says, thousands of people drive around without automobile liability insurance. If you have the misfortune of getting into a crash that an uninsured motorist caused, you might need to make a claim against your automobile insurance policy under the uninsured motorist coverage.
- Underinsured motorists. When people carry only the minimum automobile liability insurance required, their coverage likely cannot pay for all the losses in a significant collision. In this situation, your automobile insurance policy’s underinsured motorist coverage could help pay for your losses that the at-fault driver’s policy does not cover.
Please contact Laborde Earles Injury Lawyers if State Farm has denied your motorcycle accident claim. We will be happy to talk to you at no charge and evaluate your claim. After we review the situation, we can advise you on your options for recovery.