Challenging Auto Insurance Rulings: Your Rights And Steps

If you disagree with an auto insurance company's ruling, there are several steps you can take to protest their decision. Firstly, it is important to understand the basis of their ruling, including how they determined the value of your vehicle and the repairs required. You can then gather evidence, such as independent appraisals, sticker details, prices for comparable vehicles, photos of the car before the accident, and receipts for any additional features. This evidence, along with a counteroffer, can be sent to the insurance company. If they do not agree to your counteroffer, you can explore other options, such as contacting your state's insurance regulator, seeking arbitration, or filing a lawsuit as a last resort. It is worth noting that insurance companies are only required to pay the actual cash value (ACV) of the car, not the cost of a replacement or the original price.

Gather evidence, including an independent appraisal, the car's sticker details, and photos of the car before the accident

Gathering evidence is a crucial step in protesting a ruling by an auto insurance company. Here are some detailed tips on how to gather evidence effectively:

Independent Appraisal

Obtain an independent appraisal of your vehicle's value. This can be done through local body shops and garages. Make sure to get the inspection details in writing so that you can present this information to the insurance company. An independent appraisal will provide an unbiased assessment of your car's value, which can be used to support your case.

The Car's Sticker Details

Locate the sticker details that were on the car when it was purchased. These details contain essential information about the car's value, make, and model year. This information is crucial in determining the car's worth and can be used as a reference point for your counteroffer.

Photos of the Car Before the Accident

Take multiple photos of your car from various angles before any damage occurred. These photos will serve as a visual reference for the condition of your vehicle before the accident. Be sure to capture any unique features or modifications made to the car. Additionally, take close-up photos of any existing damage to the vehicle to have a comprehensive record.

Additional Evidence

In addition to the items above, there are several other types of evidence that can support your case:

• Prices for comparable vehicles: Research and collect information on the prices of similar vehicles in the market. This will help demonstrate the value of your car relative to others.
• Receipts for added features: If you have made any upgrades or added any features to your car, be sure to include the receipts for these purchases. This will show the additional investments you have made in your vehicle.
• Police report: Obtain a copy of the police report generated in connection with the accident. This report will contain important details about the incident and can be used to support your claim.
• Witness statements: Collect contact information from any witnesses who saw the accident or can provide information about the condition of your car before the incident. Their statements can provide valuable third-party perspectives.

By gathering these types of evidence, you will be well-prepared to build a strong case when protesting a ruling by an auto insurance company. Remember to organise and safely store all your documentation, as it will be crucial in supporting your claim.

Send a counteroffer to the insurance company

If you're unhappy with the settlement offer from your insurance company, you can send them a counteroffer along with evidence justifying your car's value. Here are some steps to guide you through the process:

Step 1: Gather Evidence

Start by gathering evidence to support your counteroffer. This can include an independent appraisal, the car's sticker details, prices for comparable vehicles, photos of the car before the accident, and receipts for any additional features or modifications. You can obtain a free estimate of your car's value from websites like Kelley Blue Book (kbb.com) and the National Automobile Dealers Association (nada.org).

Step 2: Provide Evidence of a Low Estimate

If the insurance company's estimate of your car's value is too low, you can provide evidence to the contrary. This may include maintenance and inspection records that show the vehicle had fewer miles or was in better condition than stated by the insurance adjuster. You can also get estimates from repair shops and salvage yards to show that their repair estimate is too high.

Step 3: Provide Evidence of a High Scrap Value

If the insurance company intends to sell your car for scrap, you can provide evidence that their estimate of the vehicle's scrap value is too high. This makes it less appealing for them to total it and sell as scrap.

Step 4: Submit Your Counteroffer and Evidence

Once you have gathered all the necessary evidence, submit your counteroffer along with the supporting documentation to the insurance company. Remember to start your research into your car's value as soon as possible and don't wait for their initial offer.

Step 5: Consider Hiring an Appraiser or Lawyer

If you feel the need, consider hiring an independent appraiser or even a lawyer to help you build your case. This may be especially useful if you believe your car is worth more than the insurance company's original estimate due to factors like low mileage and good condition before the crash.

Contact your state's insurance regulator for help

If you are unhappy with an auto insurance company's ruling, you can contact your state's insurance regulator for help. This is often the official complaint receiver for insurance issues. They will investigate the matter and allow the insurer to explain their view. If an insurance law has been broken, the case will be referred to the market conduct division for enforcement.

To begin the process, you will need to gather evidence to support your case. This includes an independent appraisal, the car's sticker details, prices for comparable vehicles, photos of the car before the accident, and receipts for any additional features. You can find independent appraisers through local body shops and garages.

Once you have your evidence, send it, along with a counteroffer, to the insurance company. If they do not agree, you can then contact your state's insurance regulator. They will conduct an investigation to determine the value of your vehicle and whether your insurer acted unjustly.

It is important to note that insurance companies are only required to pay the actual cash value of your vehicle, not the cost of a replacement or the original price. Additionally, state laws and insurance companies determine when a car is declared a total loss, so you may not be able to fight your insurer's decision. However, if their decision violates state laws, you should contact your state's insurance regulator for assistance.

Ask for third-party arbitration

Arbitration is a common way to resolve disputes with auto insurance companies. It is a form of alternative dispute resolution (ADR) and is often preferred because it is less formal, faster, and cheaper than courtroom trials. It is also legally binding, meaning the arbitrator's decision is final and cannot be appealed.

If you are in a dispute with your auto insurance company, you can request third-party arbitration as a way to resolve the issue. Here is a step-by-step guide on how to do this:

• Understand the arbitration process: Arbitration involves presenting your case to a neutral third-party, called an arbitrator. The arbitrator will hear both sides of the dispute and make a binding decision. This process is often faster and cheaper than filing a lawsuit, but it is not free, so be prepared for some costs.
• Check your insurance policy: Review your insurance policy to see if it includes a mandatory arbitration clause. Many insurance companies include these clauses, requiring you to go to arbitration instead of court. If your policy has this clause, you must submit your claim to arbitration.
• Agree on an arbitrator: If arbitration is voluntary, you and the insurance company will need to agree on an arbitrator. You can suggest an arbitrator, but both sides must agree. The arbitrator can be an experienced attorney or a professional arbitrator and must be impartial.
• Prepare your case: Gather all the relevant evidence and documents to support your claim. This may include medical records, accident reports, vehicle damage estimates, witness statements, and any other information that strengthens your case. Organize your documents and create a clear, concise presentation of your side of the story.
• Participate in the arbitration hearing: During the hearing, both you and the insurance company will present your cases to the arbitrator. You will have the opportunity to testify, present evidence, and call witnesses. The process is less formal than a courtroom trial but follows a similar structure.
• Receive the arbitrator's decision: After the hearing, the arbitrator will review all the information and make a decision. This decision is typically binding and final. You will receive the decision in writing, usually within 14 to 30 days after the hearing.

Remember, arbitration is just one option for resolving disputes with auto insurance companies. You can also try negotiating directly with the company, filing a complaint with your state's insurance regulator, or, as a last resort, filing a lawsuit. Each situation is unique, so be sure to carefully consider your options and seek legal advice if needed.

File a lawsuit as a last resort

If you've exhausted all other options, you may want to consider filing a lawsuit against your auto insurance company. However, it's important to remember that this is a complex, time-consuming, and expensive process, and there are some things you should keep in mind before taking this step.

Firstly, you should be aware of the reasons an insurance company might deny your claim. Some common reasons include lack of coverage, application errors, claim errors, insurance fraud, and bad faith denial. It's important to review your policy and understand the specific terms and exclusions to better assess the validity of the denial.

If you believe your insurer has improperly denied your claim or engaged in bad faith insurance practices, you can explore legal options, including suing your insurance company. State legislatures have passed laws to protect insurance consumers, and your state department of insurance can provide guidance and support.

Before initiating a lawsuit, it's crucial to consult with a qualified attorney, especially one experienced in insurance litigation. They can help you navigate the complex legal landscape and determine if you have a strong case. Additionally, keep in mind that you may need to sue the other driver first and obtain a judgment before proceeding against their insurance company, depending on your state's laws.

To prepare for a potential lawsuit, it's essential to document all correspondence with the insurance company, maintain records of your insured property, and keep track of any expenses incurred.

Remember, a lawsuit should be a last resort, as settling without litigation is often a more cost-effective and timely solution.

Frequently asked questions