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Finding out your Options when your Auto Insurance Denies your Claim

As if dealing with the hassle of an auto accident wasn’t enough, your insurance company has now denied your claim. Your car is wrecked, you’re out several hundred or more dollars, and you need to know what your options are.

Dealing with your insurance company doesn’t have to be a headache. Here are some steps to take when your car insurance company denies your claim.

Reread Your Policy

Take the time to read through your contract. You might find that the damages you’ve claimed aren’t actually covered by your insurance (try to play the devil’s advocate here - your agent might have a point).

By carefully reviewing the conditions of your policy, you’ll have a better idea of why your claim was denied and whether or not you have a strong case against your claim’s denial.

Make Your Case

If, after rereading your policy contract, you still believe your claim is valid, now is the time to make your case as detailed as possible. Take the time to gather all the documentation you can find on the accident.

The types of information you need may include the following:

  • Photographs of the vehicles taken immediately after the accident
  • Copies of the police report
  • Copies of statements from those who were involved
  • Copies of your insurance policy

Take Advantage of the Resources Provided by the Insurance Information Institute

The Insurance Information Institute (or III) is a national regulatory organization to keep insurance companies in line. They can give you information on your rights and options. The III often arbitrates cases like yours in which policy owners contest denied claims.

Either Choose Arbitration or File a Lawsuit

Your two remaining options are to go through an arbitration process or to file a lawsuit against your insurance company. Both options have their advantages and disadvantages.

If you go through arbitration, you won’t need to hire a lawyer or pay court fees; the process can be significantly less expensive and less time-consuming. But statistics show that cases settled through arbitration consistently result in lower payoffs to policy owners.

If you choose to file a lawsuit, you’ll need to hire a lawyer and go through the often long and painstaking court process. If you choose to go this route, you might want to hire a lawyer on contingency. This means that your lawyer is only paid if you win the case.

By taking the process one step at a time, challenging your insurance company’s denial of your claim doesn’t have to be a huge headache, though it can become a long, involved process. Taking the time to get your facts straight and documented can make all the difference in the success of your case.

If you had the right auto insurance policy, you did not have to go through all this nuisance. To find the right auto insurance policy, you can compare quotes online on this website & find out how much it costs you and what is covered in the policy. By looking at what is covered on the policy, it will give you a fair idea on what can claimed if a wreckage happens.

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