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Claims

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    What to do if insurance denies claim and more claims tips

    After an accident, if you have a dispute with your insurance company (or the insurance company of an at-fault driver) on the amount or the value of damage to your vehicle, there are additional avenues you may try outside of direct negotiation.

    If you do not agree with the compensation or your claim has been denied outright, here are some things you can do.

    • Obtain additional evidence to provide to the insurer. New information may bring clarity.
    • Work with a neutral third party. In certain situations, a "mediator” can help resolve your dispute in an informal, voluntary and non-binding process called mediation. If you are unable to reach a settlement, you may continue with your claim. You are not bound to a settlement, unless all parties agree to the terms.
    • Connect with an arbitrator. In some situations, an arbitrator may work with you and the other party to reach a result, or he or she may just simply dictate the result. This is a binding process called arbitration, with the right to appeal to the court.
    • Review the appraisers or umpire selected. Depending on the appraisers and/or umpire selected by you and the other party, your dispute over the amount of a loss is resolved with their help. This appraisal would be done in accordance with the appraisal clause in your policy.
    • File a lawsuit. As a last resort, you may file a lawsuit to resolve the claim (also known as litigation). Your policy may require you to participate in some of the above options prior to filing a lawsuit. Be sure to check your policy language.

    This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

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    American Family Insurance is our brand name. Auto policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company, Madison, WI. Property policies are underwritten by Homesite Indemnity Company, Homesite Insurance Company, Homesite Insurance Company of California, Homesite Insurance Company of Florida, Homesite Insurance Company of Georgia, Homesite Insurance Company of Illinois, Homesite Insurance Company of New York, Homesite Insurance Company of the Midwest or Homesite Lloyd's of Texas, Boston, MA. American Family Connect Insurance Agency, Inc., places policies with related and unrelated companies. In Texas, certain property coverages may be underwritten by Ranchers & Farmers Mutual Insurance Company. Each company has sole financial responsibility for its products. Products, pricing, discounts, benefits, and availability vary by state and may be subject to change. Exclusions apply.

    Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.

    This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.