Partner at AKD Lawyers
Practice Areas: Insurance Claims
If you’ve ever filed a car accident claim in Louisiana and received a denial letter instead of a check, you’re not alone. Many drivers feel frustrated and confused when their insurance company refuses to pay, especially after they’ve done everything by the book. The truth is, insurance denials often come down to technicalities, missing information, or fine print most people never notice until it’s too late.
Understanding why these denials happen is the key to avoiding them in the future. This guide breaks down the most common reasons Louisiana insurance companies reject car accident claims, what state laws say about it, and what steps you can take to protect yourself.
Understanding Car Insurance Claim Denials in Louisiana
A claim denial occurs when your insurance company decides it won’t pay for damages related to your accident. Sometimes, this is due to legitimate policy reasons; other times, it’s the result of missing documents, delays, or technical errors.
Under Louisiana Revised Statute 32:866, every driver must carry minimum coverage:
- $15,000 for bodily injury per person
- $30,000 per accident
- $25,000 for property damage
If your coverage doesn’t meet these minimums or if you violate policy terms, your claim can be rejected.
Louisiana law requires insurers to respond to a filed claim or issue a written denial within 30 days of receiving all necessary documents.
It’s also important to remember that Louisiana follows a comparative fault system, meaning your compensation may be reduced by the percentage of fault assigned to you.
Under Louisiana law (La. Civ. Code §2323), even if you’re 10% at fault for an accident, your compensation may be reduced by that same percentage.
Common Reasons Car Insurance Claims Are Denied
Insurance companies often deny claims for predictable reasons. Understanding them helps you prepare a stronger submission next time.
1. Coverage Does Not Apply
This happens when the accident doesn’t fall under your policy’s coverage. If someone not listed on your policy drove your car, or if you were using the vehicle for business purposes without proper coverage, your insurer can reject your claim.
2. Lack of Evidence
Without enough evidence, the insurer may claim there’s no proof of how the accident occurred. Always gather photos, witness statements, and a police report immediately after the crash.
Insurance companies often deny claims citing “insufficient evidence,” but the burden of proof is on them to justify a denial.
3. Failure to Report the Accident
In Louisiana, any crash causing injury, death, or more than $500 in property damage must be reported to police under La. R.S. 32:398. Failure to report can result in denial.
4. Administrative or Filing Errors
Even simple mistakes, missed signatures, wrong dates, or incomplete forms can delay or void a claim. Double-check every detail before submission.
5. Pre-Existing Injuries
If you had prior injuries, the insurer might argue they weren’t caused by the accident. Louisiana law allows compensation for aggravated conditions, but you must provide clear medical records.
6. Comparative Fault
Under Louisiana’s pure comparative fault rule, your compensation may be reduced if you share any responsibility for the crash. For instance, if you’re found 20% at fault, you can only recover 80% of your damages.
7. Overvalued or Inflated Claims
If your claim seems excessive or inconsistent with evidence, the insurer might reject it. Keep receipts, bills, and accurate repair estimates to avoid this issue.
8. Missed Deadlines or Statute of Limitations
You have one year from the accident date to file a personal injury claim in Louisiana, under La. Civ. Code Art. 3492. Missing this deadline usually means losing your right to recover compensation.
The statute of limitations for filing a car accident claim in Louisiana is one year from the date of the accident.
How Policyholders Can Prevent or Dispute a Denial
If your claim is denied, don’t panic. You can often resolve it by understanding what went wrong and correcting it.
- Review your policy to understand exclusions and limitations.
- Request a written denial letter explaining the insurer’s reasoning.
- Gather supporting evidence such as photos, police reports, and medical documents.
- File an appeal with additional documentation if the insurer made an error.
- Contact the Louisiana Department of Insurance if you believe the denial was made in bad faith.
Louisiana requires insurance companies to provide written reasons for claim denials and allows consumers to appeal through the Department of Insurance.
Acting quickly is important since deadlines apply to appeals as well. Organizing documents and responding promptly can often reverse a denial.
Key Louisiana Insurance Rules and Deadlines
Understanding Louisiana’s specific insurance laws helps policyholders protect their rights:
- Minimum Coverage: $15,000 per person, $30,000 per accident, $25,000 property damage (La. R.S. 32:866).
- Comparative Fault Rule: Compensation reduced by your share of fault (La. Civ. Code §2323).
- Accident Reporting Requirement: Mandatory for property damage over $500 (La. R.S. 32:398).
- Statute of Limitations: One year from the accident date (La. Civ. Code Art. 3492).
These laws aim to ensure fairness between drivers and insurers but can be complex for those unfamiliar with the process.
Common Reasons for Claim Denials and How to Avoid Them
|
Reason for Denial |
Description |
Preventive Measure |
| Coverage Exclusion | Driver or activity not covered under the policy | Review policy terms regularly |
| Lack of Evidence | Missing police reports or accident photos | Document the scene immediately |
| Comparative Fault | Partial fault assigned to driver | Collect witness statements, accident reports |
| Missed Deadlines | Claim filed after legal deadline | Track timelines and submit early |
| Administrative Error | Incorrect or missing information | Double-check every submission |
Lessons from Real-World Scenarios
Consider a driver in Baton Rouge who filed a claim three weeks late because they waited for the other driver’s insurance to respond. Their own insurer denied the claim due to untimely reporting. Had they filed promptly and updated the insurer later, the claim might have been processed.
In another example, a policyholder failed to list a family member as a regular driver. When that person caused an accident, the claim was denied because the driver wasn’t covered. Updating policies after major household changes prevents such problems.
These examples show that simple awareness of deadlines, coverage limits, and documentation can protect your claim.
Frequently Asked Questions
What are the most common reasons car insurance claims get denied in Louisiana?
Claims are often denied for missing evidence, policy exclusions, late reporting, or disputed fault findings.
Can I appeal a denied insurance claim in Louisiana?
Yes. Provide more evidence, correct paperwork errors, or request review through the Louisiana Department of Insurance.
What is the time limit for filing a car accident claim in Louisiana?
You have one year from the date of the accident to file, as required under Louisiana Civil Code Article 3492.
How does comparative fault affect my claim?
Your payout is reduced by your share of fault. If you’re 25% responsible, you receive 75% of your total damages.
What evidence strengthens a car insurance claim?
Police reports, photos, medical records, and witness statements all support your claim effectively.
What should I do if my insurance company denies my claim without reason?
Request a written explanation, review your policy, and consider filing a formal complaint with regulators.
Conclusion
Facing a denied insurance claim can feel overwhelming, but understanding Louisiana’s insurance laws helps you respond effectively. Many denials occur because of small errors or missing documentation that could have been avoided.
By acting promptly, organizing evidence, and knowing your rights under Louisiana law, you can strengthen your position and protect your claim.
If you’re struggling with a denied claim, Alvendia, Kelly & Demarest Law Firm, a trusted New Orleans car accident lawyer team, has years of experience helping Louisiana residents navigate complex insurance disputes.
Contact Alvendia, Kelly & Demarest Law Firm today for a free consultation and learn how to move forward confidently after a claim denial.
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In 2003, after being dissatisfied with the quality of legal care for victims of car accidents, Roderick ‘Rico’ Alvendia sought to establish a new firm focused on providing high-quality legal services to aid injured victims and their families. J. Bart Kelly, sharing Rico’s passion for upholding justice, joined the firm later that year, and established a partnership.
