Your Rights When Filing an Auto Insurance Claim
Your Rights When Filing An Auto Insurance Claim
When you’re involved in a car accident, you may feel you’re at the mercy of your auto insurance company. But you are not entirely without rights. Your state insurance probably has passed laws protecting against unfair auto insurance and/or unfair claims settlement practices. If you cannot find laws specific to the auto industry, check for broader laws pertaining to trade practices.
Although the particulars vary among the different states, almost every state requires that auto insurers:
- Timely acknowledge a claim.
- Promptly investigate all claims.
- Make a concerted effort to quickly effect a fair and equitable settlement of any claim where it is reasonably apparent that liability exists.
- Have a valid reason for refusing to pay a claim.
When necessary, escalate the matter
If you believe your experience with the adjuster or agent violates any regulations, ask to speak to someone with more authority, such as a supervisor. If this doesn’t remedy the situation, next contact the insurance department in your state. Discuss the matter with someone there and, if need be, file a complaint.
The state department that oversees the auto insurance industry takes complaints seriously. It will initiate an investigation if a reasonable number of similar complaints are made against the insurer. Should a pattern of misconduct be identified, the insurance company may be subject to penalties ranging from fines, imposition of punitive damages, even license revocation.
In some states, you’re allowed to initiate a private lawsuit against the insurer for violating these regulations. If found in your favor, it’s likely you’ll be able to recover the claim amount. Some states may award more including punitive damages and legal costs.
To better protect yourself initially
Be honest and thorough when completing your auto insurance application for. Listen carefully to the way coverage is explained. Then before agreeing to the policy, which is a legally binding contract, make certain you understand everything, especially exclusions, limitations, and your deductibles. Then sign it.
When filing a claim
Review the claims reporting process and then take appropriate steps, starting with notification. Be truthful in what you’re claiming. Keep a written record of correspondence (who you spoke with, dates and time of conversation, summary of what was discussed) and make copies of whatever you submit to support your claim. Get independent repair estimates, and don’t sign off on anything until you’re confident your claim was handled fairly.