What to Do If You Have Trouble Settling a Car Insurance Claim

Car insurers are not always eager to part with a settlement, especially when dealing with a claimant who is not a policyholder of theirs. Insurers can drag their heels, stonewall, and use other stall tactics to avoid or delay having to pay out your claim. If you are experiencing difficulty getting your car insurance claim settled, there are certain things you can do to goad the insurer into action. Read on for tactics that will help you move closer to a settlement of your auto insurance claim.

Take the Initiative with a Demand Letter

Typically, the insurance adjuster is the first party to act by contacting you, the claimant, with a settlement offer. If you have not yet received such an offer or are dissatisfied with the offer you received, you can write a demand letter to the carrier specifying the settlement you want. In a demand letter, you explain the reason for your auto insurance claim, enumerate all of the expenses you incurred as a result of the accident, and attach documentation to substantiate those expenses. For example, if you’ve had an independent appraisal performed to assess the damage to your vehicle, you can attach the appraiser’s written report. Likewise, you can attach medical bills, paystubs for lost wages, etc.

Eventually, the adjuster will respond with a counteroffer, which will likely be substantially lower than the settlement you demanded. You can continue the negotiations in writing until you reach a settlement that is mutually agreeable. Remember that insurance adjusters are authorized to offer a settlement range to claimants, and they usually start negotiating at the lower end of that range.

Lawyer Up

In the event you no longer feel capable of continuing negotiations with the insurance company or if you feel your rights have been violated, you may want to consult with an auto accident attorney. You can authorize your attorney to negotiate with the carrier for you, if you prefer. The attorney can also tell you if the settlement amount you’re demanding is fair and if the insurer is in violation of the law by delaying your settlement.

Alternative Dispute Resolution

Before auto insurance claims can be taken to court, they usually must first go through some type of alternative dispute resolution process, such as mediation or arbitration. Your policy will specify the dispute resolution process you must go through if you object to the settlement you are offered. If you would like to begin this process, you should inform the insurer of your request and seek legal counsel.

The Insurance Department

Sometimes, all it takes to put an insurer’s feet to the fire is to threaten to file a complaint with the state department of insurance. Put your intention to do so in writing and send it to the car insurance company. If you still see no progress and do not receive an acceptable claim settlement, proceed with the complaint. You can call your insurance department or, in most states, file a complaint online. If the agency decides the complaint was merited, it can investigate your claim and possibly force the insurer to pay your settlement.