What If The Insurance Wouldn't Settle The Claim?

What if the insurance wouldn't settle the claim you submitted for damage to your car? Would you know what to do or why they refused?

Usually a reputable insurance company will investigate and process auto insurance claims promptly. However, some insurance companies are slow and will do everything they can to not pay their clients.

Approximately 10% of all claims are denied without a good reason. In most of these cases, if the policyholder contests the insurance company's decision, the insurance company does pay legitimate claims.

If this happens to you, the first thing you should do is read your insurance policy very carefully to make sure your claim is accurate and that the claim denial was legitimate. In many cases there's a clause in your insurance policy that is interpreted differently by you than it is by the insurance company. The law requires that insurance companies provide policyholders with a written statement and explanation as to the reason for their denial. Make sure you get this written denial.

When you fill out your claim forms, try to be as accurate as possible following the insurance company's instructions. If you have any questions as to how to fill out the claim forms, don't hesitate to ask the insurance company or someone knowledgeable in this area to help you.

There are certain deadlines that some of the claim forms must be filled out by. Try to take care of this in a quick timely fashion. The sooner you fill out and return the forms, the sooner your claim will be processed and you'll be paid.

If for some reason you didn't get your forms filled out right away, the insurance company cannot deny payment, even though some may try. The only circumstance where they may not pay is if your delay prevented them from doing an accurate investigation. In all other cases, they cannot deny payment if you had adequate insurance coverage.

What if the insurance wouldn't settle the claim if everything was done correctly? If you have done everything that needs to be done at your end and the insurance company still has not settled the claim, you may have to make some phone calls.

First you need to determine the reason for their refusal, which should be listed on your denial letter. If you don't agree with their reason, contact the insurance company. Do not be put off by the secretary or assistant that answers the phone at your insurance company, or even your agent.

You may have to go up the corporate ladder, but be prepared to go as far as you have to go to be treated fairly. If the claim isn't settled within 30 days, contact the insurance company and ask to speak to the top person there. You may be put off but don't give up until you get what you deserve. Keep calling until you get your claim paid.

You may also write letters to the insurance company, always keeping copies of all correspondence. These are good because they often reach different people than your phone calls. If phone calls or letters don't work, you can contact your state Department of Insurance for higher legal assistance.