Reservation Of Rights Letter: Meaning And Next Steps

Auto accident claims are not always straightforward. For example, you may receive a reservation of rights letter if you file an auto accident claim. Many people do not even know what to do.

Meaning of the Letter

Insurance companies have different responses to injury claims. For example, an insurance company may deny your claim, accept your claim, or send you a reservation of rights letter. The reservation of rights letter is the insurance company's way of informing you that they neither accept nor deny your claim but need time to complete investigations. Thus, the insurance company reserves the right to deny your claim later. Insurance companies use reservation of rights letters when they are likely to deny portions of your damages. The letter protects insurance companies from assumptions of claim acceptance from injury victims. For example, injury victims would assume that their insurance companies are processing their claims if they don't receive the reservation of rights letter. Such assumptions complicate issues for insurance companies. The letter reserves the insurer's right to deny your claim.

What to Do Next

Reservations of rights letters seem generic, but you should treat them as seriously as other legal documents associated with your claim. Below are helpful steps to take if you receive a reservation of rights letter.

Read the Letter and Your Policy

Read the letter to understand its allegations fully. The letter may explain the reasons for the reservations. For example, they may explain why the insurance company has rejected some of your claims. You should also go over your auto insurance policy and compare your coverage to the allegations in the reservation of rights letter.

Call the Insurance Company

Reservation of rights letters are not always concise or easy to read. You might not understand why the insurance company may reject some of your claims even after reading the letter. Therefore, you should call the insurance company as soon as possible for an explanation.

Consult a Lawyer

Receiving a reservation of rights letter means that your claim might not be as straightforward as you would like. Consult an auto accident lawyer if you don't have one already. The lawyer will scrutinize the reservation of rights lawyer, liaise with the insurance company, and handle the rest of your claim.

You are lucky if you file a claim and get your settlement without issue. Many accident victims have to go through hoops to get their compensation. An auto accident lawyer will handle everything on your behalf and simplify the process.

For more inforamtion, contact a personal injury lawyer in your area.   

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