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Me and my wife bought a vehicle in 2010. We got a loan from our bank and paid the owner. She moved and we lost contact before we could get the title. We paid off our loan and maintained insurance and registration on the vehicle. My wife recently totaled the vehicle in an accident that was the other drivers fault. That insurance company came and took the car and gave us a value that they would be paying us. A week later they called and said they couldn’t pay us. We can’t afford to take this loss and I have no idea what I can do.”
Asked March 22, 2015
In some cases, an auto insurance company may refuse to pay a claim submitted by a policyholder. Refusing to pay is commonly known as denying" the claim. Two common reasons for a claim being denied is either because the loss is not covered under the insured's policy, or the insurance company believes some form of fraud or misconduct took place on the side of the policyholder. Claims that are denied because of a lack of coverage cannot be amended. For example, if your vehicle is stolen but you did not purchase comprehensive coverage, your claim would be denied if you submit one.
If your claim has been denied, the first thing you'll want to do is call your insurance company and ask them the reason for your claim being denied.
If you were involved in an accident in an at-fault that wasn't your fault, then you would have to contact the other party's insurance company. This is because in at-fault states, you are only financially liable for an accident if it was your fault. Filing a claim with your own insurance company under these circumstances will result in your claim being denied. The only exception to this rule is if the other party was uninsured or underinsured, and you purchased the appropriate protection.
In some cases, a claim denial is the result of misinformation. A misspelling of name, wrong policy number, or other administrative error will cause your claim to be automatically denied. This is why calling to make sure the company has accurate information is important. You'll also want to make sure the insurance company has a correct copy of the police report.
If you believe you have a valid claim and the insurance company still refuses to pay even after you've verified your information, then ask them how to start the appeal process. Keep a detailed record of all correspondence including telephone calls, emails, and letters. Stay in contact with the insurance adjuster and agent to request status updates and to stress the legitimacy of your claim. If your appeals are denied, contact your state regulator to take further action. In addition, file a complaint about the insurer with your state's Department of Insurance.
Your last recourse would be to sue for compensation. Coverage disputes require a careful analysis of the unique facts regarding each situation. If it gets to this point, it is recommended to find an attorney who is experienced and knowledgeable about insurance law to help you with your case.""
Answered April 20, 2015 by Anonymous