How To Challenge An Auto Insurance Company’s Denial In Detroit
As attorneys representing injured drivers across Detroit and throughout Michigan, we understand how frustrating it is to receive a letter saying your auto insurance claim has been denied. You’ve paid your premiums and followed the law, yet when you need help the most, the insurance company turns you away. We see this happen far too often, and we want you to know—you don’t have to accept that denial without question.
Michigan is a no-fault insurance state, which means your own insurer should cover your medical bills and certain financial losses after a crash, regardless of who caused the accident. But insurance companies sometimes deny claims for invalid or questionable reasons. When that happens, you have legal rights and a process you can use to fight back. We’re here to help you understand those rights and challenge unfair denials with the legal tools available under Michigan law.
Common Reasons Auto Insurers Deny Claims
Before you can challenge a denial, it’s important to understand why your claim was rejected. Insurance companies often use vague or technical reasons in their denial letters. Some of the most common include:
- Missed filing deadlines
- Alleged lack of medical necessity
- Claims that injuries are unrelated to the accident
- Accusations of fraud or misrepresentation
- Disputes over whether treatment was reasonable or allowed under policy terms
Under Michigan’s No-Fault Act (MCL 500.3101 et seq.), your Personal Injury Protection (PIP) benefits should cover all reasonable and necessary medical expenses, lost wages (up to a cap), attendant care, and other allowable expenses. If your insurer denies any of these benefits without a valid legal basis, we can pursue enforcement through the courts.
Reviewing The Denial Letter And Policy Terms
The first step in challenging a denial is to carefully review the letter from the insurance company. We look for specific explanations about what was denied and why. Then, we compare their reasoning with the terms of your insurance policy and Michigan’s no-fault statutes.
We also review the medical records, accident report, and billing details to make sure your claim was properly supported. In many cases, we find that denials are based on incomplete or misunderstood information—something we can correct through strong documentation and legal pressure.
Filing A Lawsuit For Wrongfully Denied No-Fault Benefits
If your insurance company refuses to reverse its denial after we submit additional evidence, we can file a lawsuit to compel payment. Under MCL 500.3142, insurers must pay valid claims within 30 days of receiving proof of loss. If they don’t, and their denial is found to be unreasonable, they may be required to pay penalty interest and attorney fees.
The legal process may involve:
- Filing a complaint in the appropriate Michigan circuit court
- Conducting discovery to obtain internal insurance records
- Presenting medical testimony to support your claim
- Arguing that your treatment was necessary and covered
We’ve helped countless clients recover full PIP benefits and hold insurers accountable for bad faith denials. Our goal is to get you the medical and financial support you deserve so you can focus on healing.
What If Your Claim Involves Another Driver’s Negligence?
In addition to PIP benefits, you may also have a separate third-party claim against the at-fault driver. Under Michigan law, if your injuries meet the serious impairment threshold under MCL 500.3135, you can seek compensation for pain and suffering, excess wage loss, and other non-economic damages. If your insurer wrongfully denies your claim while you’re pursuing a third-party case, it’s even more critical to act quickly and get legal guidance.
Time Limits For Challenging Denied Claims
Michigan law imposes strict deadlines for filing legal action after a claim denial. Under MCL 500.3145(1), you generally have one year from the date of the accident or one year from the last payment made by the insurer to file suit for unpaid no-fault benefits. That’s why it’s so important to act quickly when you receive a denial letter. Waiting too long could forfeit your right to compensation.
Car Accident Claim Frequently Asked Questions
Why Would My Insurance Company Deny A Valid Claim?
Insurance companies are businesses. While they have a legal obligation to pay legitimate claims, they often look for ways to reduce costs. Denials may be based on missed deadlines, technical policy interpretations, or alleged lack of proof. Sometimes, they’re simply wrong. We can review the facts and fight back when the denial has no legal basis.
What If The Insurance Company Claims My Injuries Are Not Related To The Crash?
We see this tactic used often. Insurers may hire independent medical examiners (IMEs) who provide opinions that minimize or deny the severity of your injuries. We counter those reports with your treating physician’s records, imaging scans, expert witnesses, and testimony showing the link between your accident and your injuries.
Can I File A Lawsuit Against The Insurance Company?
Yes. If the insurance company unreasonably denies or delays payment of no-fault benefits, you have the right to file a lawsuit. Under Michigan’s No-Fault Act, you may also be entitled to interest and attorney fees if the court finds the denial was improper.
What If The Denial Was Based On A Missed Deadline?
We investigate whether the deadline was truly missed or whether the insurer is misrepresenting the timeline. Sometimes, the delay is due to ongoing medical care or waiting for a diagnosis. If the delay was unavoidable or the insurer had sufficient information, we may still be able to pursue the claim.
Can I Handle A Denial Without A Lawyer?
You can try, but insurance companies often respond differently when an attorney is involved. We know how to present evidence, use the law to your advantage, and pressure the insurer to pay. Without legal representation, you may not know what your claim is truly worth, or what legal remedies you have if the insurer refuses to cooperate.
Speak With A Detroit Auto Insurance Attorney Today
If your auto insurance claim has been denied or delayed, we’re ready to help you take action. At Ravid & Associates, P.C., we’ve helped countless accident victims in Detroit and across Michigan recover what they’re owed after unfair denials.
Contact our Detroit car accident lawyers at Ravid & Associates, P.C. by calling (248) 948-9696 to receive your free consultation. Our office is located in Southfield, Michigan, and we proudly serve clients across the entire state of Michigan. Let us help you challenge your insurer’s decision and get the compensation you deserve.
