Auto Insurers Are Closing More Claims Without Paying, Investigation Finds

A car accident is stressful enough without having to wonder whether your insurance company will actually pay the claim.

A recent Wall Street Journal investigation highlights a troubling trend: auto insurers are increasingly closing liability and medical claims without paying. According to the Journal’s analysis of thousands of regulatory filings, insurers did not pay 45% of auto liability and medical claims they resolved in 2025, up from approximately 35% a decade earlier. More specifically, among the 10 largest auto insurers, Farmers, Liberty Mutual, and State Farm had the largest increases in no-payment rates for liability and medical claims over the past 10 years, the report found.

For drivers who have regularly paid their premiums, that statistic raises an important question: what happens when an insurance company denies your claim? At Grimes Teich Anderson, we know that an insurance dispute can add another burden to an already difficult recovery.

Understanding why claims are denied and what you can do when it happens can help you protect your rights.

Small Details Can Have Big Consequences

The Journal investigation cites an example in which a California driver was involved in a minor collision, and their insurer, Allstate-owned National General, refused to pay anything for their liability claim. While in most cases the insurance should have covered the claim, there was a small stipulation in the policy application that the driver was required to disclose all household members ages 14 or older. Because the driver had not disclosed his teenage son as a household member, the insurer denied the claim, even though the teenager was not in the vehicle and did not have a driver’s license. The dispute ultimately became the subject of a class-action lawsuit.

The broader lesson is important: insurance policies contain conditions, exclusions, and reporting requirements that may seem insignificant until after an accident occurs. Review your policy carefully and, if you don’t understand a requirement or provision, ask your insurance company for clarification.

A Claim Denial Is Not Necessarily the End of the Story

If an insurance company tells you that it will not pay your claim, don’t assume the decision is automatically final. Ask the insurer to provide the claim denial and its explanation in writing. Review the decision carefully and identify the specific policy provision, exclusion, condition, or other reason the insurance company is relying on to deny your claim. Understanding why an insurance claim was denied can help you determine what steps to take next and whether you may have grounds to challenge the decision.

Keep copies of:

• Your insurance policy and declarations page
• Correspondence with the insurance company
• Claim numbers and adjuster information
• Photographs and videos from the accident
• Police or crash reports
• Medical records and bills
• Repair estimates and vehicle-damage documentation
• Statements or correspondence concerning the denial

The details matter. A denial based on an exclusion differs from a dispute over a claim’s value, and a disagreement about liability raises different issues than a dispute over whether a particular driver was covered. Understanding the reason for the denial is an important first step in determining how to respond.

What Should You Do After a Car Accident Insurance Denial?

If your claim has been denied, or the insurance company is delaying, minimizing, or refusing to pay what you believe the policy covers, consider taking these steps:

• Don’t ignore the denial. Insurance claim disputes can involve deadlines. Failure to respond promptly can cause you to forfeit your right to compensation.
• Request the denial reason in writing. Documentation of the reason the claim was denied is important for understanding the insurer’s position and determining what steps to take next.
• Review your policy. Look at the declarations, coverage provisions, exclusions, conditions, endorsements, and any amendments that may apply.
• Preserve evidence. Keep accident photographs, medical documentation, bills, repair estimates, witness information, correspondence, and other records.
• Don’t assume the adjuster’s interpretation is the final word. An insurance company’s position is not necessarily the same thing as a court’s interpretation of a policy.
• Talk with an experienced attorney. Cases involving insurance disputes can be complex. A car accident lawyer can do a thorough assessment of your policy and the other driver’s policy to determine if you have a valid claim.

Don’t Wait Until an Insurance Problem Becomes a Crisis

The Wall Street Journal investigation reminds us that having an insurance policy does not necessarily mean every claim will be paid without question. When you are injured in a crash, your priority should be recovering. Not fighting an insurance company alone while medical bills accumulate and you are unable to work.

At Grimes Teich Anderson, our attorneys represent people injured in car accidents and help clients navigate the insurance issues that can follow a serious collision. If an insurance company has denied your claim, delayed payment, or offered less than you believe you are entitled to receive, getting legal advice early can help you understand your options. The insurance company has its own interests. After a serious crash, make sure someone is protecting yours.

Contact us to speak with a car accident lawyer today by submitting an online form or calling our office at (800) 533-6845 for a free legal consultation.