You can do a few things if you think your insurance company didn’t pay enough to cover your damages or denied your claim without a good reason. Click on the type of policy to learn more. You can also call our Help Line at 800-252-3439, 8 a. m. to 5 p. m. Monday to Friday.
How to Dispute an Unfair Car Insurance Settlement
Dealing with car insurance claims can be frustrating, especially if you feel the settlement offer is too low. If you’ve been in an accident and aren’t happy with your car insurance company’s damage estimate or total loss valuation, you have options. This comprehensive guide explains how to dispute a car insurance settlement and negotiate for a fairer payout.
When Disputing a Settlement Makes Sense
In most cases, insurance companies will provide a reasonable settlement offer based on the damage, value of your car, and coverage you have. However, if they offer an amount that seems unjustified, disputing the settlement can make sense in situations like:
- The repair quote seems too low for the damage.
- The total loss valuation is below market value.
- Certain damage items were excluded from the estimate.
- Your deductible or rate increase seems excessive.
- The settlement doesn’t cover all your losses.
Before disputing, gather documentation proving the value of your car and extent of damage to justify a higher claim amount
Steps to Dispute Your Car Insurance Settlement
If you decide to move forward with disputing your car insurance claim, here is the recommended process:
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Review the estimate and settlement details closely. Make sure you understand what is and isn’t covered. Look for any obvious omissions or errors.
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Compare the settlement to quotes from repair shops or dealerships. Get written estimates showing a higher cost to fix or replace your vehicle.
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Present this documentation to your claims adjuster and politely request they reevaluate the settlement offer. Provide specifics on what seems unfair or inaccurate.
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If the initial adjuster won’t budge, escalate your dispute to a supervisor. Remain calm but firm that you deserve fair compensation.
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Consult your policy to see if there is an appeals process. Many insurers allow you to request reconsideration.
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If needed, obtain an independent appraisal from an auto repair expert showing evidence the insurance company undervalued damages.
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Contact your state insurance commissioner if you believe the insurer is acting in bad faith and not honoring your policy. File a complaint detailing your situation.
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Consult a lawyer who specializes in car insurance disputes as a last resort if you still can’t reach a satisfactory settlement through the insurer.
Tips to Improve Your Chances of a Better Settlement
Follow these tips when negotiating your car insurance claim settlement:
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Act quickly before accepting the initial offer. Waiting makes it harder to dispute.
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Be polite but persistent when communicating with your insurer. Document all interactions.
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Gather repair estimates, appraisals, comps, and other hard evidence to justify your position.
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Determine a reasonable counteroffer amount based on market values and cost of repairs.
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Highlight relevant sections of your policy showing what is owed to you.
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Escalate to managers if needed, but avoid threatening litigation as a first step.
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Consider mediation before taking legal action, which should be a last resort.
Avoid Pitfalls When Disputing Your Settlement
Some common mistakes to avoid when trying to negotiate an improved car insurance settlement include:
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Failing to understand or follow the required claims process outlined in your policy.
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Waiting too long after receiving the initial settlement offer before disputing it.
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Being overly aggressive, threatening, or accusing when interacting with claims staff.
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Making unrealistic demands not backed up by tangible evidence.
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Refusing to communicate or negotiate reasonably with your insurance company.
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Accepting an offer before exploring whether a higher amount is justified.
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Signing a release that gives up your right to future compensation related to the loss.
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Hiring a lawyer prematurely before attempting to work it out directly with the insurer.
When to Accept the Initial Settlement Offer
In certain cases, it may be advisable to accept the original settlement from your insurer without dispute:
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If the amount seems reasonably fair and aligned with your policy.
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If you lack the time, energy, or resources to negotiate effectively.
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If disputed items are subject to reasonable doubt or debate.
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If the potential increase from disputing would be minimal compared to time spent.
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If you have an urgent need for compensation and can’t afford delays from haggling or litigation.
Seeking Legal Help for Settlement Disputes
If you’ve made good faith efforts to resolve a lowball settlement directly with your insurer to no avail, consulting a lawyer may be your next step. An attorney can provide expert guidance on:
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Evaluating whether the original settlement breaches your policy contract.
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Determining if you have grounds to accuse the insurer of acting in bad faith.
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Assessing if litigation against your insurance provider could be warranted.
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Negotiating a better deal by putting legal pressure on the insurer.
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Recovering damages not just for your car repairs or value but also for associated losses.
Keep in mind legal action should generally be a last resort after you’ve diligently attempted to work it out with your insurer directly. Disputing a settlement takes time and effort but can result in the fair compensation you deserve. With persistence and evidence supporting your position, an improved offer is often attainable.
Homeowners or renters policy
If you disagree with the adjusters final estimate, tell the company why. The company may have overlooked something and may make adjustments. Make sure to send any supporting documentation, such as a contractor’s estimate for the repairs. If you still disagree, you have several options to challenge your insurer’s decision.
Your policy may include an appraisal process to resolve complaints. The appraisal process begins with you and the company each hiring an appraiser. The two appraisers then choose a third appraiser as the umpire. Your appraiser and the companys appraiser make their own estimates of your loss. If they are not the same, the umpire makes the final call, which you and the company must follow. You are responsible for the expenses of the appraiser you hire and for half of the umpires expenses. Check your policy for any deadlines to demand appraisal. If you need help finding an appraiser, search for a “property damage appraiser” or check with your contractor.
If you think an insurance company has treated you unfairly, you can file a complaint with us. Learn how to get help with a home insurance complaint.
Some people hire a public insurance adjuster if they don’t agree with the insurance company’s adjuster about the amount or type of damage. Public adjusters charge fees for their services. Before you hire a public adjuster, make sure you understand what you’ll have to pay. Learn more about public adjusters.
You have the right to sue the insurance company in court if you’re not happy with how the case turned out. You can use these resources to find legal help. You can also ask for alternative dispute resolution, which lets you settle your differences without going to court through mediation with a neutral third party.
You should first try to work things out with your insurance company by talking to your adjuster or company. If you still aren’t satisfied, you have several options to challenge your insurer’s decision.
Your policy may include an appraisal process to resolve complaints. Appraisal allows you and the company to hire separate damage appraisers. The two appraisers choose a third appraiser to act as an umpire. The appraisers review your claim, and the umpire rules on any disagreements. The appraisal decision is binding on the amount of the damage. There may be disagreements about what is covered. You can try to settle the coverage issue after the appraisal. You must pay for your appraiser and half of the umpires costs.
If you think an insurance company has treated you unfairly, you can file a complaint with us. Learn how to get help with an auto insurance complaint.
For more information about auto claims, see My car was flooded.
How to Dispute And Win A Car Insurance Total Loss So You Can Avoid Having Your Car A Total Loss
FAQ
How do I argue an auto insurance claim?
How do I disagree with an insurance claim?
What happens when insurance companies disagree?
How do I respond to a first car accident settlement offer?
In response to a first car accident settlement offer, your options include putting together a demand letter and making a counteroffer, and don’t worry that the insurance company might “revoke” its first offer.
What should I do if my insurance claim is disputed?
Maintain a record of all your communications. In fact, it is prudent to do this during the initial claims process, not just the dispute. Make copies of any letter or document you send to the insurer or to any third party involved in the claim, such as an agent or adjuster.
How does a car accident settlement work?
Car Accident Settlements and Car Insurance If you’re involved in a car accident, chances are you’ll end up making some kind of claim for injury or vehicle damage (maybe both). That claim can get resolved in a number of ways, usually by a settlement that you receive from the at-fault driver’s car insurance carrier.
How do I settle a car insurance claim?
Be certain to include your claim number and contact information. Review your auto insurance policy. Most companies offer either arbitration or appraisal services to help settle differences and disputes. Your insurance policy will explain these options. Contact your state insurance department.