Claims are most often rejected due to incorrect or invalid information that does not match what’s on file with the payer. Rejections can come from either the clearinghouse or the insurance payer. A rejection status does not necessarily indicate that the payer has determined that the claim is not payable.

What is a common reason why insurance claims are rejected?

Claim rejections (which don’t usually involve denial of payment) are often due to simple clerical errors, such as a patient’s name being misspelled, or digits in an ID number being transposed. These are quick fixes, but they do prolong the revenue cycle, so you want to avoid them at all costs.

Most common Reasons Why Car Insurance Claims Get Rejected

  • Running away from the accident scene. Most of us get panicked in the event of an accident and make the mistake of running away
  • Having a panic attack or getting stressed
  • Not calling the police
  • Driving under the influence of alcohol
  • Skipping post accidental formalities
  • Having a wrong insurance policy
  • Premiums aren’t up to date

One of the main reasons why claims are rejected is because premiums are not paid on time. The good news is that, by law, insurers must grant consumers a grace period to pay the outstanding premium. This period may not be less than 15 days but could be longer, so check your policy.