How to Deal with a Denied Car Insurance Claim in Washington

What happens if your car insurance claim is denied? Abeyta Nelson attorneys have helped clients with denied auto accident claims for over 40 years. Contact us today to discuss your case.

A car crash is stressful enough. But when your insurance company denies your claim, the frustration can turn into financial panic. Suddenly, the coverage you’ve paid for feels useless and you’re left wondering what to do next.

In Washington, policyholders have rights. Insurance companies are legally required to act in good faith under the Insurance Fair Conduct Act, but if they don’t, you have the power to challenge them. Here’s how to take control after a denied car insurance claim and get the compensation you deserve.

1. Understand Why Your Claim Was Denied

A denial letter isn’t the end; it’s the start of your paper trail. The insurer must explain exactly why your claim was rejected. Common reasons include:

• Policy exclusions: The loss or event isn’t covered under your policy.
• Missed deadlines: You reported or filed the claim too late.
• Insufficient evidence: You didn’t provide enough proof of the damage or injuries.
• Disputed liability: The insurer claims you were at fault.
• Lack of coverage: Your policy limits or type of coverage don’t apply to this situation.

Next step: Read the denial letter carefully. Then, compare it with your policy’s fine print, especially exclusions and coverage definitions. If something doesn’t add up, call your insurer and ask for clarification in writing.

2. Review Your Policy and Gather Evidence

Treat this like building a case because that’s exactly what it is. The burden of proof shifts to you, and documentation is your strongest weapon. Gather:

1. Photos and videos from the accident scene
2. Police reports and witness statements
3. Repair estimates or medical records
4. Copies of your claim correspondence
5. Your insurance policy and denial letter

If your insurer blamed you for the accident, evidence of negligence from the other driver, like a traffic citation, dashcam footage, or witness testimony, can help you challenge the denial.

3. File an Internal Appeal

Under Washington law, you have the right to appeal a denied claim. Here’s how to do it effectively:

1. Write a formal appeal letter. Be direct and factual. Explain why you believe the denial was wrong and reference policy language that supports your position.
2. Attach supporting evidence. Include every document that strengthens your argument.
3. Submit it promptly. Washington’s Office of the Insurance Commissioner (OIC) requires timely appeals, so don’t miss the deadline listed in your denial letter.

Keep a record of all calls and correspondence. Dates, times, and names matter if you later need to prove bad faith or delay tactics.

4. File a Complaint with the Washington Office of the Insurance Commissioner

If your insurer ignores your appeal or continues to stall, it’s time to escalate. The Washington State Office of the Insurance Commissioner investigates unfair or deceptive practices under the Unfair Practices Act (RCW 48.30.010).

Filing a complaint can trigger an independent review of your claim and pressure the insurer to resolve the issue quickly. You can submit a complaint online at insurance.wa.gov or call 1-800-562-6900.

5. Consider Mediation or Arbitration

Some insurance policies include arbitration or mediation clauses that allow you to settle disputes outside of court. These processes can be faster and less expensive than a lawsuit, but you should still consult an attorney before agreeing to them.

6. Hire an Experienced Washington Car Accident Attorney

When insurers act in bad faith, delay payments, or deny valid claims, you need someone who knows their tactics. A car accident lawyer can:

• Review your denial and identify policy violations
• Handle appeals and communication on your behalf
• Negotiate for full compensation including damages for pain, suffering, and lost wages
• File a bad faith insurance lawsuit if your insurer violated Washington’s good faith laws

If your case goes to court, you may even recover up to three times your actual damages under Washington law for unreasonable claim denials.

7. Explore Alternative Coverage Options

If you need immediate help paying bills while fighting your insurer:

• Check for Medical Payments (MedPay) coverage, which can cover hospital and doctor bills regardless of fault
• Use health insurance for medical costs while your appeal is pending
• Apply personal savings or short-term financing only as a last resort

8. Don’t Wait, Deadlines Matter

Every insurance company and legal process has time limits. Missing a deadline can erase your right to appeal or sue. When in doubt, act immediately and document every step.

Denied a Car Insurance Claim in Washington? Abeyta Nelson Can Help.

A denied car insurance claim doesn’t mean you’re out of options; it means you need to push back strategically. Washington law protects you from bad faith insurance tactics, and with the right evidence and representation, you can overturn an unfair decision.

Our team has been standing up to insurance companies across Washington for more than 40 years. We know how to cut through red tape, expose bad faith tactics, and fight for every dollar you’re owed.

You pay nothing unless we win your case.