Denied Car Insurance Claims - How to Handle Them

It sometimes happens that insurance adjusters andbinding ruling. If this fails, you have the option of
insurers have reason to deny your auto insurancelitigation, alternative dispute resolution or filing a
claim. However, the power is yours to pursue yourcomplaint against your insurer with your State
claim if you feel that the claim was denied onInsurance Commission.
spurious grounds, salient information/extenuatingFrom the moment you file your appeal with the
circumstances were omitted or if the insurer acted ininsurer, have all relevant information handy and
bad faith by denying the claim.ensure that you keep copies of correspondence with
Normally, the adjuster would file a written reportyour insurer. Having adequate documentation is a vital
giving reasons for the claim denial. You should receivepart of presenting your case professionally and in an
a copy of this report once a claim is denied. Yourorganized manner. When you can substantiate your
first step is to review the reasons highlighted in thecounter-claim, it makes it easier to expedite the
adjuster's report - along with your car insurancedispute resolution process as well.
policy. In some cases, the claim that you made wasIt is important for you to be persistent as well. Some
not covered under your contract. For example, someinsurers rely on claimants bailing out because they get
drivers believe that liability coverage covers injury tofed-up with the run-around or do not have a clear
their person (even if they are at fault). However,idea of their rights and privileges during this process.
that is not what liability coverage is designed toThe last straw in the claim dispute resolution process
cover.is litigation, alternative dispute resolution or filing a
If, after reviewing the claim, you find that you havecomplaint with the SIC against your insurer. You
just cause to pursue it still, you should file an appealshould only file a complaint with your State Insurance
with your auto insurer. Upon receiving the appeal, theCommission if there is evidence that the insurer
auto insurer should invite you to give youracted in bad faith, was partial or fraudulent in denying
perspective on the accident and resulting claim. Thisyour claim.
aspect of the resolution process is the negotiationKnowing your right and privilege is important when
phase.your car insurer initially denies your claim. It is
If you find that you are not getting a satisfactoryimportant to establish that you have a case and
response from your insurer, then you have can stilleven more important that you are able to
take it a step further. You can seek disputesubstantiate your appeal. Keep in mind that being
resolution through arbitration. Arbitration involves aorganized and professional in presenting your case
neutral third party presiding over the dispute with aincreases the likelihood of a successful appeal.