McKayla Girardin, Car Insurance Writer
@mckayla_girardin
If your stolen car insurance claim is denied, you can appeal the decision after reviewing the reason for the claim denial. If you believe your claim was wrongfully denied, the best thing you can do is find a lawyer who specializes in bad-faith insurance claims to help with the appeal.
What to Do When a Stolen-Car Insurance Claim is Denied: 5 Steps
1. Request more information from your insurance company.
Your insurer will likely send a letter that outlines their reason for denying the claim, but if your claim was denied and you haven’t received any information about why, reach out to them to get the documentation. Without the documentation explaining their decision, you cannot begin to determine if the claim was wrongfully denied or not.
2. Provide additional details, if needed.
If you have more information about the theft, such as police reports, you should submit it to your insurer. That alone could sway their decision.
3. Find a lawyer.
The easiest way to handle an insurance claim appeal is by having a lawyer who is experienced and knowledgeable. When an insurance company denies a claim for what seems like no reason, this is referred to as a bad-faith action. In other words, they are denying your claim without respect to the faith that you, as an insured driver, have put in them through your contract and premiums.
4. Appeal the decision.
An experienced lawyer will help you determine if your claim was wrongfully denied and can help you handle the appeals process.
5. Pursue legal action, if necessary.
Ultimately, if your insurance company continues to deny your claim, further legal action could be needed. This may include suing your insurer, for example.
Reasons for Stolen-Car Insurance Claims to be Denied
Although some insurance companies may deny stolen-car claims wrongfully, there are some common reasons why an insurer would deny a claim.
- The insurance company determined that it was a fraudulent claim.
- The amount you request in your claim is more than your car’s actual cash value.
- You are behind on a payment or forgot to renew your policy.
To learn more, check out WalletHub’s guide to car insurance claims.
People also ask
How do I fight a denied car insurance claim?
To fight a denied car insurance claim, you should submit a letter appealing the insurance company’s decision and seek help from an experienced lawyer. Your appeal letter should include your claim number, your policy number, and information that counters the insurance company’s reasons for denying your claim. Appeal letters can be sent through regular mail.
How to Fight a Denied Car Insurance Claim
- Request a letter of explanation. Typically, your insurer will...
Does car insurance cover theft?
Yes, car insurance covers theft if you have comprehensive coverage, which is optional. Comprehensive auto insurance can help replace your car if it’s stolen or repair damage to your car resulting from break-ins or vandalism.
It is important to note that normal liability car insurance won’t cover theft because it only protects other drivers from bodily injury and property damage resulting from an accident you cause.
What Insurance Covers If Your Car Is Stolen
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