Fight Back: File A Complaint Against Your Auto Insurer

If you're unhappy with your auto insurance company, you can file a complaint. Common reasons for complaints against insurers include delays, unsatisfactory settlements, and claim denials. Before filing, it's important to first try to resolve the issue with your insurance company or agent, as many issues can be sorted out this way. If this doesn't work, there are several options for filing a complaint. You can contact your insurance agent, write to an executive at the company, ask a third party (such as an ombudsman) to help mediate, file a complaint with your state department of insurance, seek arbitration, or file a legal claim against the insurer in court.

File a complaint with your state insurance regulator

If you are facing issues with your auto insurance company, there are several options for filing a complaint. One option is to file a complaint with your state insurance regulator.

Filing a Complaint with Your State Insurance Regulator:

The process for filing a complaint with your state insurance regulator may vary depending on your state, but here are some general steps and guidelines to follow:

• Contact your insurance company first: Before filing a formal complaint, it is recommended to try resolving the issue directly with your insurance company. Talk to your insurance agent or customer service representative to discuss your concerns.
• Prepare the necessary information: Gather all relevant information and documents related to your complaint. This includes your insurance policy details, correspondence with the insurance company, and any other evidence that supports your case.
• Visit your state's insurance department website: Each state has a department or division that regulates insurance companies and handles consumer complaints. You can usually find their website by searching for ""[Your State] Department of Insurance" or "Division of Insurance."
• Select your state and navigate to the consumer complaint page: Once you are on the website, look for a link or section specifically for consumer complaints. This is where you will find information on how to file your complaint and the specific steps to take.
• Be prepared to provide your information: You will likely need to fill out a form, either online or on paper. Have your personal information ready, such as your name, address, type of insurance, and the reason for your complaint.
• Provide detailed information about your complaint: Clearly explain the issue you are facing and why you are filing a complaint. Include specific details, dates, and any relevant correspondence or interactions with the insurance company.
• Include supporting documents and photographs: Provide any relevant documentation or evidence that supports your complaint. This could include email correspondence, phone call logs, repair estimates, or other relevant information.
• Follow up as needed: After submitting your complaint, pay attention to any communication from the insurance regulator. They may request additional information or provide updates on the status of your complaint.

Remember that the process may vary slightly depending on your specific state and the nature of your complaint. Each state's insurance department takes complaints seriously and is prepared to assist consumers with their issues. However, it is important to provide as much detailed information and evidence as possible to support your case.

Send a demand letter to the insurance company

If you are dealing with a dispute against an auto insurance company and can’t seem to reach a resolution, consider sending them a demand letter. A demand letter is a letter outlining a set of requests you would like the insurance company to perform. For example, if the insurance company ignores your requests for reimbursement for a claim falling within the purchased insurance policy, you can make this request in the demand letter. A demand letter also serves as a notice to the insurance company that if they don’t meet your demands, you intend to sue them in small claims court.

Depending on the state you are filing a lawsuit in, you may be required to demand payment from the insurance company before filing. For example, in California, you are required to ask for payment before suing the insurance company. A demand letter is an effective way of completing this requirement.

A demand letter may lead to a settlement without further legal action (and legal costs).

You can use a free tool powered by AI to help you create a demand letter to an insurance company.

File a BBB complaint against the insurance company

If you are dealing with a dispute against an auto insurance company and can't seem to reach a resolution, you might consider filing a complaint against the company. One option is to file a complaint with the Better Business Bureau (BBB).

The BBB acts as a consumer advocate by accepting and forwarding complaints against businesses like insurance companies. It is important to note that the BBB cannot force an insurance company to come to an agreement with you.

Step 1: Contact Your Insurance Agent

Before filing a formal complaint, it is recommended to first try to resolve the issue with your insurance agent. They can be a great ally and advocate for you within the company. If your agent is unable to help, you can contact their manager.

Step 2: Appeal to an Executive

If contacting your agent and their manager does not resolve the issue, you should then appeal to your insurance company directly. Insurance companies have an appeal process that you should follow before seeking outside help. You may need to submit a written appeal, and there is often a time limit for submitting an appeal (e.g., 180 days).

Step 3: Complain to an Ombudsman

If appealing to the insurance company does not work, you can consider reaching out to an ombudsman. Some state departments of insurance have an ombudsman, who is an on-staff advocate that can help resolve your complaint. They can ensure that the department provides a high level of customer service and assist with issues related to insurance availability, claims processing, and coverage questions.

Step 4: File the BBB Complaint

If the above steps do not resolve your issue, you can then proceed with filing a formal complaint with the BBB. You can file a complaint through the BBB website or by submitting a written letter. Your complaint will be forwarded to the insurance company within two business days, and they will be asked to respond within 14 days. You will be notified of their response or lack thereof. Complaints are typically closed within 30 days.

It is important to note that there are certain types of disputes that the BBB cannot assist with, including employer-employee disputes, complaints about government agencies, and complaints solely alleging discrimination or seeking criminal penalties.

Step 5: Follow Up

If you are still dissatisfied with the outcome after filing a BBB complaint, the BBB may request a second response from the insurance company. They may also consider whether mediation or arbitration should be offered, depending on your region.

Sue the insurance company in small claims court

If you are dealing with a dispute against an auto insurance company and can’t seem to reach a resolution, you can sue the insurance company in small claims court. In small claims court, a judge decides whether you or the insurance company are in the right.

Steps to sue an auto insurance company in small claims court:

• Send a demand letter: Before suing, it is recommended to send a demand letter to the insurance company. A demand letter is a letter outlining a set of requests you would like the insurance company to perform. For example, if the insurance company ignores your requests for reimbursement for a claim falling within the purchased insurance policy, you can make this request in the demand letter. A demand letter also serves as a notice to the insurance company that if they don’t meet your demands, you intend to sue them in small claims court. Depending on the state, you may be required to demand payment from the insurance company before filing.
• Gather supporting documents and photographs: You should include email correspondence, a log of phone calls with your agent or company, and other relevant documents.
• Write a detailed account of what happened: Outline the facts of the case, the history of your interactions with the insurance company, and the reason for your complaint.
• Determine the correct jurisdiction and file a complaint: Contact the Clerk of Court to determine the correct location to file the lawsuit. You will then need to submit a "Statement of Claim" form, providing the facts of the case and justifying the amount you seek. Attach duplicates of any written documents, such as notes, leases, repair bills, and contracts. A fee, known as a filing fee, will need to be paid to the court clerk, based on the sum of the lawsuit.
• Notify the defendant: You must then notify the defendant and serve them with a copy of the lawsuit, including a "Notice to Appear" or summons. This can be done through registered mail or by paying a fee to have the clerk send the lawsuit by mail. If these methods are unsuccessful, you can pay the Sheriff's Office to provide personal service, where they will hand-deliver the lawsuit papers to the defendant.
• Attend the pretrial hearing: You will be notified of the date, time, and place of the pretrial hearing, which is held to determine the issues in the dispute. If the defendant fails to appear, the judge will order a prove-up hearing to see proof that the lawsuit was filed in the proper county and that the defendant was notified. If the defendant appears and admits fault, the case can be settled without a trial. If mediation is ordered, it will be held at the courthouse, and if a settlement is reached, the terms will be set and signed by both parties.
• Prepare for the trial: If the case does not settle, prepare for the trial by gathering all the evidence and listing any documents and witnesses you intend to call to testify. If a witness may fail to show up, you can subpoena them.
• Present your case: During the trial, both sides will present their stories, evidence, and witnesses. It is important to stick to the issues of the dispute and be courteous. If the defendant offers to settle or the judge suggests it, consider it carefully as it may be in your best interest to accept.
• Receive the judgment: After the trial, the judge will announce their decision, or they may want additional time to review the evidence and research case law before making a final judgment, which will be sent to both parties. If the defendant is unsatisfied, they can file a written motion for a new hearing within ten days after the judgment.

Contact your insurance agent

If you're not satisfied with your auto insurance company, you can file a complaint against them. Delays, unsatisfactory settlements, and claim denials are among the most common reasons people file complaints against their insurers. Contacting your insurance agent is one of the first steps you can take to resolve an issue. Here are some detailed and instructive steps to guide you through the process:

• Reach out to your agent: Start by getting in touch with your insurance agent, especially if you bought your policy through them. Your agent can act as your advocate and help resolve the issue. They have the same interests as you and can be a valuable ally.
• Escalate to the manager: If your agent is unable to help, don't hesitate to contact their manager. This is often the next logical step to navigate the process effectively. Most of the time, issues can be resolved at this level without needing to escalate further.
• Understand the appeal process: Before taking your complaint outside the company, it's essential to understand the insurance company's appeal process. While they may not readily offer this information, you should inquire about it. Some companies may have appeal options available on their websites.
• Follow up in writing: Depending on the insurance company's policies, you may need to submit a formal appeal in writing. Be sure to do so within the specified timeframe, such as 180 days for some companies.
• Provide supporting documentation: When making your appeal, ensure you have all the necessary supporting documents. This includes email correspondence, phone call logs, photographs, and any other relevant information that strengthens your case.
• Keep a record of communication: It is essential to maintain a detailed record of your interactions with the insurance company. This includes emails, letters, and phone calls. This documentation can be crucial if you need to take your complaint to the next level.
• Be persistent but respectful: Remember to remain respectful and professional in your interactions with your insurance agent and their manager. Clearly communicate your concerns and be persistent in seeking a resolution, but avoid escalating the situation unnecessarily.

By following these steps, you can effectively engage your insurance agent and work towards resolving your issue. If this doesn't lead to a satisfactory outcome, you can then consider taking your complaint to the next level, such as contacting an executive at the insurance company or seeking help from a third party, like an ombudsman.

Frequently asked questions