Drivers carry auto insurance to provide coverage for property damage, liability, and medical costs after a motor vehicle accident.
They reasonably expect that the premiums they pay will translate into fair payment when coverage is needed. However, this expectation is increasingly being tested. A recent study found that 45% of auto liability and medical claims resolved in 2025 were closed without payment. How are nearly half of auto insurance claims ending without insurers paying anything?
When an Accident Turns into a Coverage Dispute
A recent Wall Street Journal article highlighted the case of a California driver, who was involved in a minor accident in 2023. Believing he was compliant with his policy, he expected his liability coverage to handle the approximately $5,000 claim. He was denied by his insurance company. 
According to the Wall Street Journal, the dispute did not concern the accident itself. Instead, the insurer focused on the policyholder’s teenage son, who was not in the vehicle and did not have a driver’s license. The claim was denied because the 14-year-old had not been disclosed as a household member.
A pending class-action lawsuit alleges that some insurers accept applications without obtaining certain household information, then later used that missing information to deny claims after an accident. The allegations raise an obvious question: if the information could be uncovered after a claim was filed, why was it not verified before the policy was issued?
Claims Being Challenged
What do insurers say about this? Insurance companies argue that a more careful examination of claims is necessary because of insurance fraud and other questionable claims. Furthermore, insurance industry representatives argue that lawyers are getting involved in claims too often and too early. Which is a surprising complaint coming from companies with entire legal departments. If insurers are entitled to lawyers protecting their interests, injured drivers should not be faulted for wanting the same.
Why has this greater scrutiny become necessary? It doesn’t seem to be because the industry is operating on razor-thin margins. GEICO alone reported roughly $6.8 billion in profit from its core insurance business in 2025. Policy holders have a right to ask if this change is simply a more aggressive approach to increasing profits.
Navigating Insurance Claims
Insurance companies deal with these issues every day and have adjusters, investigators, claims analysts, medical reviewers, crash experts, accountants, lawyers, and support staff available to review your claim.
For most policyholders, the opposite is true. They have limited experience with insurance claims, few resources to investigate or evaluate them, and no team of professionals protecting their interests. While insurers may argue against it, having an attorney on your side can help level the playing field and make sure your claim is properly investigated, valued, and pursued.
When Should You Talk to a Car Accident Lawyer?
If you suffered a serious injury, required hospitalization or surgery, are facing significant medical bills, or may have lasting health issues, you should speak with a lawyer early in the process. The more serious the injury, the more important it becomes to evaluate fault, available insurance, future medical costs, lost income, and what the claim may ultimately be worth. 
You should be especially cautious if the insurance company:
- disputes who was at fault;
- questions whether your injuries or treatment were caused by the crash;
- disputes the amount of available insurance coverage;
- challenges uninsured or under-insured motorist coverage;
- makes an early settlement offer before the extent of your injuries is known;
- asks you to sign a release while you are still being treating; or
- delays or denies a significant claim without a clear explanation.
Not every minor claim requires a lawyer, but when the injuries or financial stakes are serious, having someone experienced on your side can make all the difference.
Seriously Injured in a Car Accident?
If you have been seriously injured in a crash, consider speaking with an attorney as soon as possible. Do not wait for an insurance company to delay, dispute, or deny your claim before getting legal help.
Schlesinger Law Offices has decades of experience handling serious motor vehicle cases and dealing with insurance companies. Contact us for a free case review to discuss what happened and learn what options may be available.