When choosing a car insurance carrier, most people believe finding the best car insurance rates is the most difficult part of the process. But even if you're happy with your provider and have the best value and cheapest car insurance available, you can still be faced with a serious hassle if your insurance company denies your car insurance claim when you need it most.
There are a number of steps you can take if your car insurance claim has been denied. First, contact your insurer, inform them of the mistake you see and provide any necessary documentation. Sometimes a simple call to your insurance company's customer service line is all you'll need to do. If the denial still stands, request to see a copy of the claim that your insurer has on file detailing your denial. For every insurance claim that is denied, there is a report that an adjustor has had to prepare citing the specific reasons for the denial. Once you receive the report, you should read it and understand it fully. Reread your policy disclosure agreement and compare it to the denial report. Many times, the insured person is unaware of certain exclusions until they are faced with a claim denial. If your insurer realizes the denial was an error, they can reopen the claim formally and continue with their investigation and the claim process. If not, you may need to escalate your appeal to the proper authorities.
If you still believe you have been wrongfully denied a claim, you should formally lodge an appeal with your state insurance commissioner. In this appeal, you and your insurance company will need to attend negotiations and discuss a resolution. You will also hear the reason for the denial formally form a company representative.
If after exhausting the aforementioned steps you still believe your insurance company has wrongfully denied your claim, you should consult legal representation with experience in bad faith insurance claim denials in your state. You may need to sue your insurance company for a bad faith denial, violation of insurance codes and or breach of contract, and will need an attorney that is experienced in this area of the law to proceed.
An initial car insurance claim denial is not the final word in the claims process. When searching for car insurance rates, don't simply be concerned with finding the cheapest car insurance available. Become educated about your policy and what it entails. Know the processes set in place for a claim dispute, and be sure to understand who you will need to contact if you need to escalate the claim denial appeal process to state insurance officials.