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The case is closed and finished if you have already accepted an insurance claim settlement. But what if you made a mistake on your claim or want to recover more compensation? Can you reopen a closed insurance claim?
Unfortunately, you generally cannot reopen a closed insurance claim in Missouri. Insurance companies like finality; once they close a claim, they typically never open it again. There are a handful of exceptions, but closed insurance claims are generally closed for good.
A closed insurance claim is one where the case has reached its resolution. The insurance company has determined it will take no further legal action on the matter. They have fully investigated the case and have rendered a final decision. An insurance company will close a case when it either denies the claim or pays the claim.
When you accept a settlement from an insurance company, you usually must also sign a liability release form. Your signature on this form frees the other party and their insurance company from further liability. In other words, when you accept a settlement payment, you also agree not to bring any further action against the defendant for the injury. The point of this kind of release form is to avoid endless litigation between the two parties.
The insurance company will also close your claim if they have denied it. When you first receive the denial letter, you can secure an attorney to determine whether your claim could succeed if you go to trial in your case. If your lawyer believes you could not prevail at trial and the insurance company offers no settlement, once they close your claim, there’s nothing more you can do to secure compensation.
You cannot do much once an insurance company closes a claim. Insurance companies lose money when they reopen claims and fight vigorously against doing so to preserve their bottom line. That is why insurance companies will try to settle early for small amounts and close the claim — they want to minimize the chances they have to pay the full amount.
There are, however, a few instances where you can reopen a claim. For example, if you never signed a release of liability form, you may have grounds for reopening a claim. You may also be able to reopen a claim if the insurance company never paid you what they agreed to pay. You may be able to reopen the claim if the insurance company made errors on the settlement contract or committed fraud during the claims process.
If you think the insurance company closed your claim incorrectly, you must talk to an attorney as soon as possible. Your attorney can review your claim to see if you have grounds to reopen it and pursue compensation. They can also initiate formal litigation against the insurance company to recover compensation for your losses.
Once you accept a settlement and the insurance company closes the claim, your options for recovering additional compensation are severely limited. Never sign any settlement until you have spoken to your lawyer and they have reviewed the contract terms, especially if the insurer offers a settlement shortly after the accident. You shouldn’t sign an early settlement because:
Agreeing to a settlement is final, so you want to be absolutely sure that you are getting the best possible offer. Don’t hesitate to have your attorney review any settlement offer the insurance company makes.
Reopening a claim may not be possible, so the ideal option is to get things right the first time, avoiding the need to revisit it later. Following these guidelines can help increase your chances of achieving a satisfactory claim resolution.
Gather as much documentation about the accident as you can before filing a claim. That includes photos of the scene, police reports, eyewitness accounts, and other evidence proving your claim. Insurance companies frequently deny and close claims because of insufficient documentation, so don’t give them a chance with poor record keeping.
If you are filing a claim for medical expenses, you must include medical documentation with an official diagnosis. Examples of important documents to save include diagnostic tests, lab reports, imaging, prescriptions, patient files, hospital discharge paperwork, and medical bills. These documents will be critical to proving your injury and medical expenses to the insurance company.
Instead of trying to gather all the evidence and argue your case yourself, hire a seasoned St. Louis car accident attorney to take on your case. They can present your claim to the insurer compellingly, and they will know how to maximize the compensation you’re due.
Reopening a closed insurance claim is not impossible, but it’s not necessarily easy. It is a long process that is best handled by an experienced attorney. If you need legal counsel regarding a closed insurance claim or help to file an insurance claim, contact our law firm at (314) 231-4100 or through our online form today for a free case consultation. Check out our notable cases to know how we can help you.