What if the Insurance Company Refuses To Pay After a Car Accident?

 Posted on November 30, 2025 in Car Accidents

The purpose of car insurance is to cover expenses related to a car accident. Unfortunately, some insurers delay, underpay, or deny valid claims without providing a clear explanation. When this happens, you may feel powerless against a company that should be helping you. California law protects your right to challenge unfair claim denials. With help from our LA County, CA car accident lawyers, you can hold the insurance company accountable and pursue the full compensation you deserve.

Why Would an Insurance Company Deny a Car Accident Claim?

Insurance companies are profit-driven businesses. Their goal is often to pay as little as possible. They may deny a claim because of missing documents, unclear accident details, or disagreements about who was at fault. Sometimes, they argue that your injuries are not related to the crash or that your policy does not cover the type of damage you reported.

Under California Civil Code §1714, fault can be divided among the drivers involved in a collision. This is known as the comparative negligence rule. If the insurer believes you share responsibility for the crash, it may reduce or reject your payment. Even minor mistakes, such as missing a filing deadline or forgetting to include supporting evidence, can lead to a denial.

What Can You Do if the Insurance Company Acts in Bad Faith?

Insurance companies in California must act in good faith when reviewing and paying claims. Acting in good faith means handling your claim honestly, quickly, and fairly. If they fail to do this, they may be violating California Insurance Code §790.03(h), which prohibits unfair or deceptive claim practices.

Bad-faith actions include unreasonably delaying payment, offering an unfair settlement, or failing to investigate the accident properly. If you can show that your insurer acted in bad faith, you may be able to recover not only the amount owed but also damages for stress, financial hardship, and possibly punitive damages meant to discourage future misconduct.

What Steps Should You Take if Your Claim Was Denied?

If you know you have a valid claim, but it was denied, you have options. You can take specific steps to protect your rights and keep your case moving forward. For example, you can:

• Carefully read the denial letter to understand the insurer’s reasoning.

• Gather your policy documents, accident report, medical records, and photos.

• Review your insurance policy for deadlines, exclusions, and appeal procedures.

• Submit a written appeal or request for review.

• Keep a detailed record of all correspondence with the insurer.

• Consult an attorney who understands insurance disputes before signing anything.

California law gives you limited time to file a lawsuit. In many cases involving car accident harm or property damage, the deadline can be as short as two years. Acting promptly allows your attorney to collect evidence while it is fresh and file your case within the proper timeframe.

Schedule a Free Consultation With a Los Angeles, CA Car Accident Attorney

At Tahmazian Law Firm, P.C., our LA County, CA car accident lawyers have recovered over $100 million in favorable verdicts and settlements for clients across California. As a dedicated father/sons firm, we take a personal approach to every case, combining experience with genuine care for the people we represent.

If your claim was denied, do not give up. Our legal team can investigate the denial, challenge unfair insurance tactics, and fight for your rights. Contact us today at 818-242-8201 to schedule your free consultation to find out how we can help.