Resolving Auto Insurance Claim Disputes
What happens when the claim amount offered by your auto insurance company won't cover the cost to repair your vehicle? Unfortunately, this is not an uncommon complaint. Auto insurance companies use a number of resources to determine a claim award, including book value, depreciation schedules and replacement values. These, however, may not reflect your true loss. Fortunately, you have the right to dispute an insurer's claims. To do so you must follow your insurer's process closely and provide proof on your behalf that the claim payout should be higher than the insurer's offer.
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Instructions
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Review your auto insurance policy to determine the procedure and time frame for filing a dispute on the claim. Ask your insurance agent to explain any of the language you do not understand and to find out how to obtain the necessary paperwork to file a claim. Gather any documentation you have regarding the claim, including personal photographs, repair estimates and any other information you have that supports your claim.
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Hire an independent adjuster to assess the damage to your vehicle. The insurance company's adjuster works for the insurance company and may have provided a low estimate to complete the necessary repairs. The independent adjuster works for you and your best interest. Once the adjuster has completed the assessment, have the report sent to both you and your insurance company.
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Request mediation of the claims dispute. The mediator is an independent third party that reviews the case and makes a recommendation regarding the claim amount. Mediation is beneficial because you do not have to hire counsel if you do not want to and it is typically cheaper and quicker than arbitration. The downside to mediation is that it is not binding. So even if the mediator sides with you, the insurance company is not legally obligated to pay.
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Proceed to arbitration if the independent adjuster and mediation do not resolve the claims dispute. You will need to hire an attorney to represent you in arbitration, making it a more expensive option. However, arbitration is faster than a court case and is legally binding. If the arbitrator finds in your favor, the insurance company is forced to pay.
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Tips & Warnings
If you feel that the insurance company, adjuster or insurance agent has not worked in good faith and wish to file a complaint, contact your state's department of insurance and follow their procedures for filing. If you are unsure about your state, use the National Association of Insurance Commissioners website (naic.org) for guidance on how to file a complaint in your state.
