What to Do If Your Auto Insurer Denies Your Claim

There’s a likelihood that all of us have to file a car insurance claim. As distressing as that sounds, having comprehensive insurance coverage in addition to standard collision can often make a bad situation go down easier. The vast majority of us will likely emerge on the other end of the experience with a little less cash in our pockets and a tidy sum of experience. But for some, the experience will have been a bad one.

This isn’t unique to any specific type of auto insurance company. A company that offers car insurance online is just as capable of delivering world-quality service as an insurance agency that still operates with in-person office visits and handshakes that seal the deal (after the ink has dried, of course). Cheap car insurance isn’t synonymous with bad service, either. So why do some people have bad experiences, while others come out okay? In a word, it’s knowing what to do and how to handle certain situations with an auto insurer that can make all the difference in the world. Here are a few tips on what to do if your insurance company denies your claim or fails to pay as much as they should, and you’re forced to file an official dispute.
 

  • Get another appraisal independently. Your insurance company will likely have preferred appraisers in your area that they have a working relationship with, and although this might be a good route to take when you’re first filing a claim, it’s important to get someone involved who doesn’t have a stake either way in the resolution of the dispute. Once the appraisal is complete, they’ll send a copy of their final estimation to both you and your insurance company.
  • In order to avoid actual arbitration, many auto insurance companies offer you the option of mediation. Essentially, this is one step below actual arbitration and, although your instincts might be telling you to go straight into arbitration, you should exhaust all of your resources prior to doing so. Arbitration can be far costlier to you because it’ll require you to hire an attorney to represent your case. Although mediation isn’t legally binding, it also doesn’t require you to hire an attorney and is a good way to resolve disputes.
  • If mediation doesn’t work, the next step is arbitration. In this case you will have to hire an attorney to represent you, and the case is presented to a third party arbiter whose final decision is legally binding.



If all else fails and the insurance company still doesn’t pay as per the decision of the arbiter, your last resort is to go to court. This is where things can start getting particularly expensive, especially for you since you’ll not only have to worry about attorney’s fees, but also costly court fees. In this case, weigh your options carefully. The last thing you want is to spend $5000 taking your auto insurer to court just to recoup an additional $3000.

What to Do If Your Auto Insurer Denies Your Claim

03/31/2011

There’s a likelihood that all of us have to file a car insurance claim. As distressing as that sounds, having comprehensive insurance coverage in addition to standard...
Read More >>

Does Having a Trampoline or Pool Increase My Home Insurance Cost?

06/27/2013

Before you put in a swimming pool or purchase a trampoline for your children, consider the additional cost to your home insurance rates. Coverage for a house that already h...
Read More >>

Related Articles

  • Are Red Cars Really More Expensive To Insure
  • Are You Able To Change The Home Or Auto Insurance Policies Mid Term
  • Auto Insurance Coastal Guidelines
  • Auto Insurance Coverage Definitions
  • Bodily Injury Liability Frequently Asked Questions
  • Californians Ok To Rent Their Own Vehicles
  • Car Insurance Coverages You Probably Didnt Know You Had
  • Car Insurance Coverage Tips For Newlyweds
  • Car Insurance Details To Consider When Requesting Quotes
  • Car Insurance Quotes
  • Car Insurance The Internet Way
  • Carriers Offer Extended Car Insurance Options
  • Cheapest Car Insurance
  • Cheapest Vehicles To Insure
  • Classic Car Owners Woefully Undereducated On Auto Insurance
  • Commercial Drivers Ed Instruction Versus Parent
  • Comparing Auto Insurance In Your State
  • Consequences Of Not Having Car Insurance In Your State
  • Demand For Quotes On Auto Insurance For Teen Drivers Decreases
  • Dollar Savings Not Always The Chief Concern Among Auto Insurance Shoppers
  • Dont Be Deer In Headlights Tips On Avoiding Deer Collisions
  • Do We Need Personal Injury Protection
  • Do We Need To Call The Police When We Have An Accident
  • Do You Need Personal Injury Protection Coverage On Your Auto Insurance Policy
  • Drives Ed Gives Teen Drivers An Education In Safety And Discounts
  • Easy Peasy Auto Insurance You Better Believe It
  • Finding Classic Car Insurance Quotes
  • Finding Out Your Options When Your Auto Insurance Denies Your Claim
  • First Timers Primer On Buying Car Insurance
  • Getting An Instant Car Insurance Quote Online
  • Getting Lower Car Insurance Quotes For New Or Young Drivers
  • Getting Medical Insurance Coverage In Your Auto Insurance Policy
  • High Number Of Bad And Uninsured Drivers Makes Compelling Argument For Raising Your Coverage
  • Hole In One Free Car And Cheap Auto Insurance For First Ace
  • How Automobile Insurance Policies Are Rated
  • How Comparative Auto Quotes Can Save You Cash
  • How Does Auto Insurance Liability Work
  • How Do You Know When It Is Necessary To Call The Police When Involved From Car Accidents
  • How Injury Lawsuits Affect Auto Insurance
  • How Much Car Insurance Is Needed
  • How To Determine The Cost Of Each Driver On My Policy
  • How To Lower The Cost Of My Auto
  • How To Overcome High Prices For High Risk Drivers
  • How To Save Your Life And Keep Your Insurance Premiums Down In The Process
  • How To Select The Best Classic Car Insurance
  • How To Shop For Instant Auto Insurance Quotes
  • How Your Credit Score Affects Your Car Insurance Policy
  • In Florida Cops Are Cracking Down On Car Insurance Fraud Rings
  • Insurers Discover Some Drivers Insure Their Cars As Farm
  • Is Defensive Driving Worth The Discount
  • Is Fourty Five Cents Per Day Acceptable For Personal Injury Protection
  • Is It Myth Or Fact That Red Cars Cost More To Insure
  • Keeing The Auto Insurance Claim Money And Repairing The Damage Myself
  • Keep More Of Your Money With Car Insurance Discounts
  • Lack Of Car Insurance Liability Laws Cost Florida Drivers Cash
  • Liability Insurance What You Dont Known Can Cost You
  • Lower Quotes On Auto Insurance For Wisconsin Drivers
  • More Car Insurance And Aggregator Websites Breaking Into Online Market
  • Most Expensive Cars To Insure
  • New Bill Would Drive Up Liability Limits In Nevada
  • New Tax Incentive To Buy Electric Cars
  • New Technology Gives Promise To Car Insurance Savings
  • Older Cars Experiencing Spike In Auto Theft
  • Online Car Insurance Quote
  • Pedestrian Detection The Next Big Thing In Car Safety And Insurance Savings
  • Personal Injury Protection
  • Price Versus Coverage When Buying Auto Insurance
  • Protecting Your Car Without Garage
  • Quotes On Car Insurance
  • Rack Em Up How Points Influence Auto Insurance Rates
  • Reasons Why My Insurance Did Not Offer Discounts After Taking Defensive Driving
  • Recovering From An Accident With Insurance
  • Report Validates Higher Auto Insurance Rates For Teen Drivers
  • Safety Tips For Driving In Snow
  • Same Sex Couples Compare Car Insurance Quotes
  • Saving Money By Making Car Insurance Quote Comparisons
  • Searching Online For Insurance Makes Saving Easy
  • Senior Driver Safety Program Can Help Lower Your Quote On Auto Insurance
  • Shedding Light On The Car Insurance Requirements In Your State
  • Shopping We Will Go Pricing Out Car Insurance Before The Holidays
  • Study Proves Economy Affects Auto Insurance Rates
  • Temporarily Lower Your Insurance Costs
  • The Conveniences Of Getting An Auto Insurance Quote Online
  • The Overlooked Benefits Of Comprehensive Coverage
  • The Proper Care And Feeding Of Auto Insurance Agents
  • There Is Nothing Accidental About Comprehensive Car Insurance
  • The Top Five Ways To Clean Up Your Act And Get Affordable Car Insurance
  • The Top Ten Most And Least Expensive Car Insurance
  • Three Driving Habits That Make Car Insurance Shopping No Fun
  • Three Guaranteed Ways To Make Your Auto Insurer Hate You
  • Three Of The Most Common Mistakes Young Drivers Make
  • Tips For Teenage Drivers
  • Tips On Deciding How Much Auto Insurance Coverage You Need
  • Tips On How To Protect Your Car Without Garage
  • Took Defensive Driving But My Insurance Company Wont Give Discount
  • Top Reasons Drivers Pay Too Much When Buying Car Insurance
  • Understanding Your Car Insurance Coverage
  • Vanishing Deductibles And How Does It Work On My Auto Insurance Policy
  • What Are The Laws Concerning Auto Insurance In My State
  • What Every Driver Needs To Know
  • What Happens If You Do Not Have Auto Insurance In Your State
  • What Insurance Providers Look For In Drivers
  • What Is Accident Forgiveness And How Does It Work
  • What Kind Of Coverage Does A High Mileage Car Need
  • What The Least Expensive Auto Insurance Gets You
  • What To Do After An Accident
  • What You Need To Know About Bodily Injury Liability On Your Auto Insurance Policy
  • Who Is Covered By My Car Insurance If The Owner Is Not Driving
  • Who Is Covered Driving My Car
  • Why Adding An Alarm To Your Car Is Not The Discount You Thought
  • Winter Driving Tips For Out Of Towners On Holiday Vacation
  • Winter May Be Best Time To Ramp Up Auto Insurance Coverage
  • Wisconsin Lowers Car Insurance Rates
  • Your States Car Insurance Requirements