What to Do When the At-Fault Driver’s Insurance Won’t Pay
Getting into a car accident can be stressful, but it becomes even more frustrating when the at-fault driver’s insurance company refuses to pay. Insurance companies may deny claims for various reasons—disputing fault, alleging policy violations, or using other tactics to minimize payouts. Knowing your rights and the steps to take can help you navigate this tricky situation and secure the compensation you deserve.
Reasons an Insurance Company Might Deny a Claim
- Disputing Fault: The insurer may argue that their policyholder was not entirely or primarily at fault.
- Coverage Issues: The driver may not have had valid insurance at the time of the accident.
- Delays in Reporting: Claims can be denied if they believe the accident wasn’t reported promptly.
- Allegations of Policy Violations: Insurers might claim their policyholder violated terms, such as driving under the influence or letting an unauthorized person use the car.
Steps to Take If the At-Fault Driver’s Insurance Won’t Pay
1. Get a Copy of the Police Report
The police report provides essential documentation of the accident, including who was cited for violations and any evidence of negligence. This report can strengthen your case when negotiating with the insurer.
2. Document the Incident Thoroughly
Collect photos of the accident scene, property damage, and injuries. Also, obtain medical records, repair estimates, and witness statements to establish the extent of your damages.
3. File a Claim with Your Own Insurance
If the at-fault driver’s insurer refuses to pay, you may need to file a claim with your own insurance provider. Depending on your coverage, you may have options such as:
- Collision coverage to repair your vehicle.
- Uninsured/Underinsured Motorist (UM/UIM) coverage to handle cases where the at-fault driver lacks sufficient insurance.
- Personal Injury Protection (PIP) for medical expenses, regardless of fault.
Filing with your insurance company doesn’t mean you waive the right to pursue the at-fault driver later.
4. Send a Demand Letter
A demand letter serves as a formal request to the at-fault driver’s insurance company for compensation. It outlines the facts of the case, your damages, and the amount you are seeking. If successful, this letter may prompt the insurer to pay or negotiate a settlement.
5. File a Complaint with the State Insurance Department
If the insurer is acting in bad faith—for example, delaying the claim without reason—you can file a complaint with the Texas Department of Insurance (or the relevant agency in your state). Regulators may investigate the matter and pressure the company to act fairly.
6. Consider Small Claims Court
For smaller claims under a certain threshold (varies by state), you can file a lawsuit in small claims court without needing a lawyer. This option may help you recover out-of-pocket expenses quickly if the insurer refuses to cooperate.
7. Consult with a Personal Injury Lawyer
If the insurance company continues to deny your claim or offers an inadequate settlement, consulting with a personal injury attorney is a smart move. A lawyer can:
- Negotiate on your behalf to maximize compensation.
- File a lawsuit against the at-fault driver if necessary.
- Handle court proceedings and deal with complex legal rules, saving you time and stress.
Many personal injury attorneys work on a contingency fee basis, meaning they only get paid if you win your case.
How Long Do You Have to Take Action?
It’s essential to be aware of the statute of limitations in your state. In Texas, for example, you have two years from the date of the accident to file a personal injury lawsuit. Missing this deadline could mean losing your chance to recover compensation.
Conclusion
When the at-fault driver’s insurance won’t pay, it’s easy to feel overwhelmed. However, knowing your options can make all the difference. Whether you pursue a claim through your insurance, send a demand letter, or take legal action, being proactive is crucial. If negotiations stall, consulting with a personal injury lawyer ensures you have the best chance of getting the compensation you deserve.