Car insurance claims in New York can be a complex maze, especially when your claim is unexpectedly denied. Understanding the reasons for these denials and knowing the appropriate steps to take afterward is crucial for effectively managing this challenging situation. This article sheds light on the common reasons for car insurance claim denials in New York and provides practical guidance on what to do next.

Understanding Why Claims are Denied:

Insurance companies deny claims for many reasons. Some of the most common include:

Reason #1 Policy Exclusions:

  • Your policy may have specific exclusions that apply to your situation.
  • Common exclusions include damages from intentional acts or using the vehicle for illegal purposes.
  • Incidents occurring while the driver is under the influence of alcohol or drugs are not usually not covered.

Reason #2 Lapsed Policy:

  • Claims can be denied if your insurance policy was not active at the time of the incident.
  • This often occurs due to missed payments or failure to renew the policy.
  • Administrative errors, such as incorrect billing information, can occasionally lead to unintentional policy lapses.

Reason #3 Unreported Changes:

  • Failing to report significant changes, like a new driver or vehicle modifications, can lead to claim denial.
  • Always update your insurance provider with any changes to your driving situation.
  • Not informing the insurer about a change of address or a change in how the vehicle is used (like using it for business purposes) can also lead to claim denials.

Reason #4 Delayed Claims or Reporting:

  • Insurance companies require timely reporting of incidents.
  • Delays in reporting can raise questions about the validity of the claim.
  • Each state has a statutory deadline for filing claims. New York is three years from the date of the accident. Missing this deadline can result in denial.

Reason #5 Insufficient Coverage:

  • The excess amount will not be covered if the damage exceeds your policy limits.
  • Review your coverage limits regularly to ensure adequate protection.
  • Some policies might not cover specific types of damages or injuries, which could lead to partial claim denials.

Reason #6 Discrepancies in the Claim:

  • Inconsistencies in your account of the incident or with the evidence can result in denial.
  • Ensure all information provided is accurate and consistent.
  • Discrepancies between your claim and official reports like police or accident reports can also result in denial.

Steps To Take After a Claim Denial:

If your car insurance claim is denied in New York, follow these steps:

Step #1 Review the Denial Letter:

  • Insurers must provide a written explanation for the denial.
  • Understand the specific reasons cited in the letter.
  • If the reasons for denial are unclear or vague, contact your insurer for a more detailed explanation.

Step #2 Gather Documentation:

  • Collect all relevant documents, including your insurance policy, accident reports, and any correspondence with the insurance company.
  • This information will be crucial for any appeals or legal actions.
  • If applicable, gather statements from witnesses to the incident, as they can provide additional support for your claim.

Step #3 Consult with a Lawyer:

  • Consider consulting a lawyer, especially if the claim involves significant damages or injuries.
  • A lawyer experienced in insurance law can guide your rights and options.
  • A lawyer can help assess whether legal action is a viable option based on the specifics of your case.

Step #4 Appeal the Decision:

  • If you believe the denial was unjust, file an appeal with the insurance company.
  • Clearly state your case and provide any additional evidence that supports your claim.
  • If the initial appeal is unsuccessful, consider requesting a review of your case by a higher authority within the insurance company.

Step #5 File a Complaint:

  • If the appeal is unsuccessful, you can file a complaint with the New York State Department of Financial Services.
  • The Department oversees insurance matters and can mediate disputes between policyholders and insurers.
  • Keep a record of all communication and responses received during the complaint process for future reference.


Having your car insurance claim denied in New York can be a frustrating and challenging experience. However, understanding the reasons behind the denial and taking appropriate action can significantly increase your chances of a favorable outcome. Review your insurance policy regularly, stay informed about your rights, and don't hesitate to seek professional advice when needed. Remember, knowledge and prompt action are your best tools in navigating the complexities of insurance claims in New York.

Injured? The Office of Brandon J. Broderick, Personal Injury Lawyers, Can Help

If the unfortunate happens and you’ve been injured in an accident, don’t go at it alone. An experienced lawyer can advocate for your best interest and pursue fair compensation for your damages. At Brandon J. Broderick, Attorney at Law, you can count on us to work tirelessly for your quality of life. Our long track record of success has helped people like you move forward after sustaining an injury caused by another’s negligence. 

Contact us now for a free legal review.

Posted by: Brandon J. Bro…
Date: Tue, 01/30/2024 - 04:55

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