Paul Sanchez
If you're unhappy with your auto insurance company, there are several steps you can take to file a complaint and seek a resolution. Firstly, try contacting your insurance company or agent, as many issues can be resolved through discussion. If this is unsuccessful, you may need to gather supporting documents and photographs, write a detailed account of your issue, and fill out a paper or online form with your personal information and reason for complaint. You can then file with your state department of insurance, which regulates insurance activity and handles consumer complaints. Alternatively, you can seek third-party assistance, such as an ombudsman, or consider arbitration or legal action if necessary.
| Characteristics | Values |
|---|---|
| Common reasons for complaints | Delays, unsatisfactory settlements, claim denials, failure to pay a covered claim, failure to reimburse for all expenses, no response from the insurance company |
| First steps to take | Contact your insurance agent, write to an executive at the insurance company, ask a third party (e.g. ombudsman) for help, or appeal to the insurance company |
| How to file a complaint | Send a demand letter, file a BBB complaint, sue the company in small claims court, file a complaint with your state insurance regulator, seek arbitration, file a legal claim against the insurer in court |
| State-level complaint process | Submit a paper or online form with personal information and reason for complaint, gather supporting documents and photographs, write a detailed account of the issue |
What You'll Learn
Contact your insurance agent
If you're facing issues with your auto insurance company, your first line of defence is your local insurance agent. They can be a great ally and are the easiest way to reach a good outcome.
If you bought your auto insurance policy through an agent, enlist them as an advocate to help with your complaint. Their interests lie with yours, not with those of the insurance company.
If your agent cannot help you, ask to speak to their manager. In most cases, your issue can be resolved at this stage.
If you are unable to reach a resolution with the agent's manager, you can consider taking your complaint to the insurance company itself.
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Write to an executive at the insurance company
If you are dissatisfied with your auto insurance company, you can file a complaint. Common reasons for complaints include delays, unsatisfactory settlements, and claim denials.
Before contacting the state department of insurance, it is important to write a detailed account of what happened and the reason for your complaint. It is also good to gather supporting documents and photographs, including email correspondence and a log of phone calls with your agent or company.
If you want to take your complaint further, you can write to an executive at the insurance company. Here is a suggested template for your letter:
Begin by introducing yourself and your reason for writing. Outline the problem or need that the letter is addressing.
Company description
Provide a brief background of the company, including when it was established, its mission, vision, and core values.
Products and services
Describe the products or services the company provides to its customers.
Organization and management
Explain the legal structure of the business and the members of the top management team.
SWOT analysis
Explain the strengths, weaknesses, opportunities, and threats of the business. Describe any internal and external factors that impact the business's competitiveness.
Industry and market analysis
Provide an overview of the industry and market in which the company competes.
Operations
Explain the main aspects of the company's operations and what sets it apart from competitors.
Marketing plan
Describe the various strategies the company uses to reach its customers and sell products or services.
Financial planning
Provide an overview of the financial state of the business, including income statements, balance sheets, and cash flow statements.
Funding request
If relevant, explain what type of funding is needed, the timeframe for the request, and how the funds will be used.
Wrap up by reiterating the main points and the importance of the letter.
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Ask a third party, such as an ombudsman, to help
If you are facing issues with your auto insurance company, you can ask a third party, such as an ombudsman, to help resolve your dispute. Ombudsmen are usually on-staff advocates tasked with ensuring that the department provides the highest level of customer service to consumers.
In the United States, some state departments of insurance have an ombudsman who can help resolve your complaint. Before contacting them, you should be prepared to fill out a form with information such as your name, address, type of insurance, and the reason for your complaint. You should also gather supporting documents and photographs, including email correspondence and a log of phone calls with your insurance agent or company.
If you are a Canadian resident, you can contact the General Insurance OmbudService (GIO) or the OmbudService for Life and Health Insurance (OLHI), depending on the nature of your complaint. The GIO helps resolve disputes for Canadian home, automobile, and business insurance consumers, while the OLHI assists Canadian life and health insurance consumers.
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File a complaint with your state department of insurance
If you're dissatisfied with your auto insurance company, you can file a complaint with your state department of insurance. State insurance departments are the official complaint-takers for insurance problems. They will investigate the matter, allowing both parties to explain their views, and determine whether an insurance law has been broken.
Visit the National Association of Insurance Commissioners (NAIC) website:
Go to https://content.naic.org/consumer.htm to get started. From there, you can select your state and navigate to its consumer complaint page.
Prepare the necessary information:
Be ready to provide details such as your name, address, type of insurance, and the reason for your complaint. It's essential to have this information readily available to streamline the filing process.
Gather supporting documentation:
Collect any relevant documents, photographs, email correspondence, and a log of phone calls with your insurance agent or company. This documentation will strengthen your case and provide evidence to support your complaint.
Write a detailed account of your experience:
Clearly explain what happened and why you are filing the complaint. Outline the steps you have already taken to resolve the issue, including any communication or interactions with the insurance company. Be as thorough and concise as possible.
Submit your complaint:
You can typically file your complaint through an online form on your state's consumer complaint page. However, some states may also offer options for submitting complaints by mail or fax. Follow the instructions provided by your state department of insurance for submitting your complaint.
It's important to note that the process may vary slightly depending on your state and the specific nature of your complaint. Be sure to review the information provided by your state department of insurance before initiating the complaint process.
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Seek arbitration
Arbitration is a legal proceeding that is less formal than a courtroom trial. It is a good choice for resolving settlement disputes, saving time and money. Most auto insurance companies offer arbitration services to help settle differences and disputes. Here is a step-by-step guide on seeking arbitration:
Step 1: Review your auto insurance policy
Your insurance policy will explain the options available to you for arbitration. There are two types of arbitration: non-binding and binding. With non-binding arbitration, you can disagree with the arbitrator's decision and file a lawsuit. Insurance companies usually mandate binding arbitration, meaning the decision is final and not appealable.
Step 2: Contact an arbitrator
An independent arbitrator with experience in insurance matters can decide if the settlement offered by the insurance company is fair. Your insurance company may suggest an arbitrator, or you can get your own from the American Arbitration Association.
Step 3: Select an arbitrator
Once you have filed for arbitration, your first task is to select an arbitrator to hear your claim. Arbitrators are often retired judges or experienced lawyers. The insurance policy or state laws may dictate how many arbitrators are selected and the process for choosing them, but you will have an equal vote in the final choice. Research each candidate and choose one with a reputation for fairness and integrity.
Step 4: Set a deadline for exchanging information and evidence
After agreeing on an arbitrator, you will set a deadline for exchanging documents and evidence with the insurance company. This will include providing supporting documentation and a letter explaining why you are not satisfied with their settlement offer. Be certain to include your claim number and contact information.
Step 5: Prepare for the arbitration hearing
Review the information and evidence provided by the insurance company. Understand their argument and be prepared to present evidence that weakens their case and supports your claim. Arbitration hearings usually occur with all parties in the same room, allowing for a back-and-forth discussion of the claim.
Step 6: Participate in the arbitration hearing
During the hearing, you will need to make an opening statement, call and cross-examine witnesses, present evidence, handle opposition, and make closing statements. Remember that arbitration is less formal than a courtroom trial, but it is still a legal proceeding, so be prepared and don't rush your presentation.
Step 7: Receive the arbitrator's decision
Shortly after the hearing, the arbitrator will issue an award statement, which is typically legally binding and cannot be appealed. If you chose non-binding arbitration, you have the option to accept or reject the arbitrator's decision and proceed to court if you are unsatisfied.
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Frequently asked questions
The first step is to talk to the insurance company and try to resolve the issue. If that doesn't work, ask for an appraisal, which is a process to resolve complaints where you and the company hire an appraiser each, and they choose a third as an umpire. If there is no resolution, file a complaint with your state department of insurance. Finally, if you're still unhappy with the outcome, seek legal help.
You will need to fill out a form with your name, address, type of insurance, and reason for the complaint. You should also gather supporting documents and photographs, including email correspondence and a log of phone calls. Write a detailed account of what happened and why you are complaining.
Delays, denials, and unsatisfactory settlements are among the most common reasons for consumer complaints. Other reasons include failure to pay a covered claim and failure to reimburse for all expenses.
You can contact your insurance agent, write to an executive at the company, ask a third party such as an ombudsman for help, file a complaint with your state department of insurance, seek arbitration, or file a legal claim.
