Car Insurance Claims Overview

Studies indicate that most American households owndenies a claim or refuses to pay. There are several
two or more vehicles and approximately one in fourreasons why a company can deny a claim. Some
own three or more. Almost one in three drivers hasexamples are:
submitted a car insurance claim in the last three- Type of loss not covered by insurance policy
years. Twenty percent had a single complaint and 1 in- The person who suffered loss under the policy was
10 car owners multiple complaints in the last threenot
years.- The policy acted in a way that canceled coverage
Polls also indicate that nearly 40 percent of those- The policy has expired
who filed claims in the last three years there were- The policy does not reflect the vehicle in the
several car accidents. One out of six submitted by aaccident
car accident. In addition, studies also show that- Demand exceeds the limits of politics
drivers over 65 are the group most likely to file aIf you review your insurance policy and find that
claim due to several car accidents. Drivers in theyour claim was unfairly denied, there are things you
18-34 age groups are most likely to file a complaintcan do to get a fair resolution. State law protects
with a single car accident.you as an insured motorist. There are state
Despite the accident in a bad mood, almost one outregulations that insurance companies must follow in
of five reported vehicle owners pay out of pocketreference to the response and resolution of a
for damages in their own cars or those of the othercomplaint. Your insurance company has the
person. In addition, about 30 percent of theresponsibility to resolve your claim in good faith.
respondents who paid out of pocket did for fearThe first thing you need to do is write a letter to the
that their premiums would increase if they had filed ainsurance company and why you believe your claim
complaint. Thirty-six percent paid out of pocket,was unfairly denied. Provide all documentation you
because the damage is too small amount ofmay have to bolster his argument. If this fails, you
complaining. However, 15 percent said they had nomay appeal this decision to the State Insurance
insurance as the reason for not filing an insuranceCommissioner. In addition, you can hire an insurance
claim.bad faith lawyer. As a last resort, you can sue your
What if your company refuses to pay the Carinsurance company for violations of state insurance
Insurance Claims?code, bad faith, and breach of contract.
There may be occasions when an insurance company