What If Your Insurance Won't Pay for a Car Accident in Minnesota?

Personal Injury Protection (PIP) Coverage

Under Minnesota’s no-fault system, the personal injury protection on your policy pays for your medical treatment and other out-of-pocket losses after a car accident up to policy limits. The minimum PIP coverage is $40,000 per person per accident, split between $20,000 for medical expenses and $20,000 for non-medical expenses like lost income.

Property Damage Claims

Your PIP won’t cover property damage to your vehicle. That falls under the collision coverage in your auto insurance policy if you have opted for it. Collision coverage is not mandatory in Minnesota.

Personal Injury Claims

If you don't have collision coverage or your damages exceed your policy limits, you may need to file a personal injury lawsuit against the at-fault driver’s insurance. This can become complicated, so it’s always wise to consult an attorney.

Policy Coverage Issues

One of the most straightforward reasons for claim denial is policy coverage problems. Your insurance company might deny your claim if your policy wasn't active at the time of the accident or if the driver wasn't covered under your policy. Claims can also be denied because the damages exceed your policy limits or because the accident occurred during an activity not covered by your policy.

Liability Disputes

Liability disputes are common in car accident claims. Insurance companies may deny claims when they dispute who caused the accident or believe you contributed to the crash. They might also deny claims due to insufficient evidence about how the accident occurred, particularly when there are no witnesses or conflicting accounts of the incident.

Medical and Injury Disputes

Insurance companies frequently challenge the medical basis of claims. They may argue that your injuries existed before the accident or dispute whether the accident actually caused your injuries. They may also claim that your injuries are not as bad as you say.

Bad Faith Practices

Some insurance denials may constitute bad faith, which occurs when an insurance company unreasonably denies or delays payment of legitimate claims. There are some instances where an insurer will make things difficult, denying your claim even though it's completely reasonable. This is known as acting in "bad faith" and is prohibited under Minnesota law.

1. Review the Denial Letter Carefully

When your insurance company denies your claim, they must provide a written explanation. This denial letter should include:

• The specific reason for the denial
• The policy language or provision that supports the denial
• Your rights to appeal the decision
• The deadline for filing an appeal
• Instructions on how to appeal
  

Take time to carefully read and understand the letter. Sometimes, denials are based on simple misunderstandings or missing information that can be easily corrected. Other times, the denial may reveal a more serious dispute.

2. Gather Evidence

Before challenging the denial, collect all relevant documentation to build a strong case for your appeal. This includes:

• Your insurance policy and all related documents
• The accident report and any witness statements
• Medical records and bills related to your injuries
• Photos of the accident scene and vehicle damage
• Correspondence with the insurance company
• Receipts for out-of-pocket expenses

Having enough evidence can be the key to a successful appeal. Insurance companies are more likely to reverse their decision when presented with clear, compelling evidence that supports your claim.

3. Contact Your Insurance Company

Call your insurance company to discuss the denial. Ask them for their justification for denying your claim, what further information they might need to reconsider, and whether there was an error in processing your claim.

Document all conversations, including the date, time, person you spoke with, and what was discussed. This evidence can be crucial if you need to pursue legal action later or file a complaint with state regulators.

Policy Coverage Issues

One of the most straightforward reasons for claim denial is policy coverage problems. Your insurance company might deny your claim if your policy wasn't active at the time of the accident or if the driver wasn't covered under your policy. Claims can also be denied because the damages exceed your policy limits or because the accident occurred during an activity not covered by your policy.

Liability Disputes

Liability disputes are common in car accident claims. Insurance companies may deny claims when they dispute who caused the accident or believe you contributed to the crash. They might also deny claims due to insufficient evidence about how the accident occurred, particularly when there are no witnesses or conflicting accounts of the incident.

Medical and Injury Disputes

Insurance companies frequently challenge the medical basis of claims. They may argue that your injuries existed before the accident or dispute whether the accident actually caused your injuries. They may also claim that your injuries are not as bad as you say.

Bad Faith Practices

Some insurance denials may constitute bad faith, which occurs when an insurance company unreasonably denies or delays payment of legitimate claims. There are some instances where an insurer will make things difficult, denying your claim even though it's completely reasonable. This is known as acting in "bad faith" and is prohibited under Minnesota law.

Filing an Internal Appeal

Most insurance companies have a formal appeals process that involves submitting a written appeal within 30 to 180 days. You'll need to provide additional documentation to support your claim and have the claim reviewed by someone other than the original adjuster before receiving a written decision on your appeal.

When filing your appeal, be thorough and specific about why you believe the denial was incorrect. Point to specific policy language that supports your position and include any new evidence that wasn't available during the initial claim review.

Timeline for Appeals

The timeline for your appeal may vary depending on the type of claim and circumstances. For urgent situations, insurance companies are required to expedite the appeals process.

Don't let the deadline pass without taking action. Missing the appeal deadline can eliminate your right to challenge the denial through the insurance company's internal process, potentially making it much more difficult and expensive to pursue your claim.

External Review Options

If your internal appeal is unsuccessful, you still have options. You can file a complaint with the Minnesota Department of Commerce, which regulates insurance companies and can help mediate disputes. Some policies allow for binding arbitration or independent review processes. In some cases, you may need to pursue legal action against the insurance company.

Recognizing Bad Faith Practices

Insurance companies may be acting in bad faith if they:

• Deny claims without conducting a reasonable investigation
• Delay processing claims without justification
• Misrepresent policy language or coverage
• Fail to communicate clearly about claim status
• Offer unreasonably low settlements
• Refuse to defend you when required under your policy

Minnesota's Fair Claims Practices Act sets specific standards for how insurance companies must handle claims. Violations of this act can provide grounds for bad faith claims and additional damages.

Uninsured/Underinsured Motorist Coverage

Minnesota requires that you carry underinsured and uninsured motorist coverage on your insurance policy. This coverage protects you when the at-fault driver has no insurance or when the at-fault driver's insurance is insufficient to cover your damages. It can cover both medical expenses and property damage, depending on your specific policy terms.

Filing a Lawsuit

If insurance won't cover your losses, you may need to file a lawsuit to recover damages. In Minnesota, you generally have until six years after the accident to file a personal injury lawsuit. However, you must meet certain thresholds.

Seeking Legal Representation

Insurance companies have teams of lawyers and adjusters working to minimize payouts. Having an experienced attorney on your side can level the playing field by:

Evaluating whether your claim was properly denied

• Navigating the appeals process effectively
• Negotiating with insurance companies from a position of strength
• Filing a lawsuit if necessary

Don't let an insurance company's denial prevent you from getting the compensation you deserve.

Contact SiebenCarey today for a free consultation to discuss your case and learn how we can help you fight for fair treatment and full compensation for your car accident injuries and damages.