Regulatory filings reveal a sharp increase in auto insurance claim denials.
Insurers rejected approximately 45% of resolved auto liability and medical claims last year. This figure rose from roughly 35% a decade ago. Policyholders face heightened scrutiny on complex claims involving personal injury or third-party damages.
Insurers attribute tighter claim practices to rising costs, increased litigation, and fraud concerns. Consumer advocates argue carriers deny more claims to improve profitability. Complaints against Progressive, Allstate, and Geico regarding claim-handling procedures have increased.