Common Reasons Auto Insurance Claims Are Denied in Oklahoma

February 16, 2025

Responses to Auto Insurance Claims Can Catch You Off Guard

Has your Oklahoma automobile insurance claim been met with a denial letter? If so, you are not alone.  Every day insurance companies in the state deny, delay, or underpay claims, leaving their clients confused and frustrated.  After all, the costs associated with vehicular accidents can be exorbitant, and policyholders believe they are entitled to compensation for their losses.

There are numerous reasons for automobile insurance claim denials.

The first step to filing an appeal is recognizing why your insurance company refused to make good on your claim. Unfortunately, accurately identifying the cause of the denial and appropriately addressing your issues with your insurance carrier can be more difficult than you would expect. At times like this, engaging legal representation from an experienced auto insurance denial attorney can be helpful. Leveraging qualified resources is a good first step as you negotiate with your insurance company.

Common Reasons Auto Insurance Claims are Denied in Oklahoma

Policyholders don’t understand their auto insurance companies’ primary goal. It is not to protect their clients from losses; instead, they aim to maximize their profitability. In the end, they have to answer to their shareholders.

But achieving and maintaining profitability can be challenging.  Vehicular accidents are commonplace, and claims are plentiful.  Thus, auto insurance companies have made a habit of delaying, underpaying, and denying claims.  As a policyholder, it is important to recognize that your insurance company’s first decision is not always final; you do have an opportunity to appeal.  To do that successfully, you must understand why your claim was denied.

Some denial reasons are valid and the policyholder is simply not entitled to compensation for their losses.  However, some denials are made in bad faith.  In instances like this, you may be eligible for damages in addition to the reimbursement for your losses.

Below are some of the most common reasons why automobile insurance companies deny claims.

Timeliness

Insurance companies impose non-negotiable deadlines concerning filing accident claims.  Time is a valuable commodity when it comes to accident investigations. If too much time passes, insurance company personnel cannot conduct reasonable investigations. It makes sense that failure to comply with stated deadlines can result in denial, even if the claim itself was valid.  You want to make sure you understand the time frame for claims submission and abide by it.

Insufficient Coverage

When you purchase automobile insurance, your coverage options may include liability, collision, and personal injury.  If your damages fall under a category in which you are not covered, your insurance company is within its rights to deny your claim.   Additionally, only the individuals listed on your policy are covered in case of accidents.

Lack of Documentation

Insurance companies require specific documentation to authorize compensation. If your claim is incomplete, it will likely be denied. If you appeal, your insurance representative will tell you what you are missing. Make sure you provide them with all of the information they require.  In fact, it may be best to completely resubmit your claim, including a letter highlighting that the missing information has been attached. Documentation may include statements from witnesses, copies of the police report of the accident, complete medical records, and repair estimates for your vehicle.

Inability to Prove Fault

Oklahoma is NOT a no-fault state, so you must be able to prove fault to collect an auto insurance claim. Providing adequate evidence is critical.  That said, Oklahoma is a comparative negligence state, so if you were partially at fault you may still be eligible for compensation.  In all cases, make sure you provide appropriate evidence to support your claim.  A denied automobile insurance claim lawyer can help you with this.

Pre-existing Medical Conditions

Quite often insurance companies will claim that the injuries you claim you suffered were not caused by the accident but by a previous injury or illness. Pre-existing conditions should be disclosed upfront, along with your medical records and a letter from your physician indicating the effect of the accident on your health.  Denying payment for injury caused by the auto accident, for the reason that you had a pre-existing condition, is a bad faith action.

Biased Experts

Insurance companies investigate all automobile accident claims.  Their teams include a host of “experts” like engineers, mechanics, doctors, and lawyers, to work on claim evaluations. These professionals have unique and valuable skill sets and can provide important information.  Unfortunately, quite often these experts are not independent, and their reports are slanted in favor of the insurance companies for whom they work.  This results in underpaid or outright denied claims.  Using biased experts is a bad-faith practice.

Additional Denial Reasons

The list above is not all-encompassing.  There are a host of other reasons your Oklahoma automobile insurance claim may have been denied. These include, but are not limited to, drinking and driving, and acting illegally (speeding, for instance).  Also, your policy structure may come into play.  If your accident occurred while using your vehicle for work, but your insurance policy is not for business usage, your claim can be denied.

Addressing Reasons for Denial Appropriately

Doug Terry Law Is Here to Help

If you received a letter of denial for your auto insurance claim and believe it was issued in error, the time to act is now.  By doing nothing you are signaling to the insurance company that their response was satisfactory and you will bear the burden of all costs resulting from your accident.

Immediately review your policy to ascertain the time frame for appeals, while also keeping in mind that the statute of limitations for filing a bad faith lawsuit (if you are unable to get the resolution you seek) is five years.  It is in your best interests to engage a bad-faith insurance attorney to assist with your appeal and any possible legal action. The process is purposefully complicated and time consuming; you likely don’t have the knowledge, experience, or time to manage it appropriately. In the long run, individuals with professional legal representation have more luck in pursuing appeals.

The team at Doug Terry Law is ideally positioned to help you.  Their experience is significant, their knowledge considerable, and their approach to service compassionate.  They understand and appreciate that automobile accidents are traumatizing, and the insurance appeals process is overwhelming. They have decades of experience providing successful representation to individuals in Oklahoma who have been wronged by their insurance companies.

Doug Terry Law’s commitment to representing people in Oklahoma who are facing insurance difficulties is long-standing and is highlighted by their practice of providing a free consultation to all prospective clients.

Don’t let your insurance company take advantage of you when you are suffering. Contact Doug Terry Law today at 405-463-6362 and learn just how powerfully they can support you.