Can Insurance Companies Disagree on Who Was at Fault and Possibly Refuse Payment?

When you file an auto insurance claim, you hope that all of the insurance companies involved will reach a timely decision about who was at fault and pay out your claim as soon as possible. Unfortunately, the claims process is not always that quick and simple. On some occasions, car insurance companies may disagree over which driver caused the auto accident, which can delay the payout of your claim. Read on to find out what happens when auto insurers cannot degree on the determination of fault and what you can do about it as a policyholder.

Car Insurer Negotiations

Auto insurers will review the circumstances of a car accident to determine the percentage of fault for which each involved driver is responsible. When insurers disagree on this number, they typically negotiate between themselves to reach a mutually agreeable fault determination. These negotiations may delay the settlement of your claim, but insurers are bound by law to pay out your settlement in an expeditious and fair manner. Further, disagreements over fault determinations are rare, as car insurers must abide by state statutes that govern such determinations.

Refusal of Payment

In the event that car insurers disagree on the driver at fault for the collision, a refusal of payment is highly unlikely. A more probably scenario is that you will receive a lower settlement than you expected or deserved, in which case you typically have to pursue arbitration to dispute the amount. Depending on the laws of your state and the policy stipulations, you might also have the option of suing the insurer in the event of an unfair payment refusal.

Although auto insurers don’t often refuse claim payouts over accident, they may take longer than necessary to settle the claim. In that case, you should take the matter up with your state’s insurance department. You have the right to receive an expeditious and fair settlement from the insurer, and if this right is violated, the department of insurance can begin an investigation.