It is common to have disputes in car insurance. The topic itself is already complicated, and several grey areas can cause confusion and disagreement between parties.
Deductible amounts, covered risks, accident scenarios, and coverage exclusions vary widely among car insurance providers, and these often generate reasons for disputes.
Addressing Auto Insurance Disputes
State agencies are the ones who handle most complaints. When a settlement cannot be reached, the arbitration will be the next step. And often, a trial is the only thing that can settle a dispute.
To prevent disputes relating to your car insurance coverage, educate yourself by carefully examining your policy document by knowing what’s covered and what’s not.
You save yourself from the hassle and inconvenience of having to file for a dispute. Similarly, know your rights and obligations as a policyholder.
Consider the following.
- Insurers cannot, in any way, misrepresent coverage or obligations.
- Insurance providers cannot negotiate for a partial settlement where they agree to pay a portion of the claim and forcefully deny another.
- The use of bureaucratic red tapes such as excessive forms in discouraging claims filing is not allowed.
- Routine appeals for every decision that does not favor an insurance provider cannot be done unless substantial and robust evidence can be presented to prove the decision wasn’t fair.
- Acknowledgments must be provided for every claim, and processing must be done in a timely manner.
- An explanation must be provided in case a delay in processing a claim occurs.
Whenever you believe that your rights are violated, and the insurer does not seem to be cooperative enough in resolving the circumstances, it’s probably time for you to initiate a dispute.
Your first option is to reach out to your insurance agent. In most cases, they can resolve the issue on your behalf.
If the situation stays the same, draft a letter addressed to your insurance provider. Explain the reason for your disagreement with their decision and send copies to all parties involved, including your agent and the concerned state agency. If all else fails, arbitration may be your final resort.