No one expects their insurance company to refuse to pay for a claim, but unfortunately, it happens all too often. When you’ve been in an accident or facing a significant loss, dealing with a company that isn’t willing to help can be overwhelming.
It can leave you feeling helpless and frustrated, wondering what to do next. Fortunately, you can take steps to fight back and protect your rights.
You will learn here what to do if your insurance company refuses to pay for a claim. This article will provide tips and strategies to help you get your deserved settlement. So, don’t give up no matter how tough the situation seems. Keep reading and learn what actions you can take to get the payment you deserve.
Review the Policy Documents Carefully
If your insurance company refuses to pay your claim, your first step should be to review your insurance policy documents. You should pay close attention to the policy’s coverage limits, exclusions, and conditions.
You can use this information to ensure the insurance company has evaluated your claim correctly. Often, insurance companies deny claims that are covered by the policy. Reviewing your insurance policy documents, you can check for errors or misunderstandings during your claim evaluation.
Talk to Your Insurance Company
If you’ve reviewed the policy documents and believe the insurance company has made a mistake, the next step is to start a conversation with their representatives. Try to obtain relevant information about why the company refused to pay. Have them explain the details of the decision in writing, too.
Afterward, you can demand a written response based on the reasoning behind their decision. This would legally bind them to stand by their decision, and it becomes a reason for you to appeal the matter. Keeping calm and polite while insisting on your rights would be best during this communication.
Seek Help from a Lawyer
Of course, seeking legal advice is always an option when dealing with an insurance company that refuses to pay your claim. A lawyer specialized in insurance disputes can help you determine what legal action you can take to appeal your case.
However, don’t just settle for any lawyer. You should consult someone who specializes in the specific type of claim you’re dealing with and has an excellent track record in the field. For example, if you’re claiming due to a car accident, it would be wiser to look for a car accident lawyer. They have the expertise and knowledge to handle your case successfully.
File a Complaint with the FTC
As someone who has experienced an insurance claim denial or a big insurance company delaying your payment, you know how frustrating and overwhelming it can be. The good news is that there is a body that you can complain to if your insurer won’t pay.
What is the FTC?
The Federal Trade Commission (FTC) is a US government agency established in 1914 that protects consumers from unfair, deceptive, or fraudulent business practices. It investigates complaints against companies and enforces laws that protect consumers from unlawful anti-competitive behavior.
How can the FTC help you?
If you have suffered harm from a business’s unfair or deceptive practices, the FTC can help you address the issue. This harm could include monetary loss, damage to your credit, or other negative consequences. The FTC can investigate your complaint and take action against the company if it has violated any laws.
How to file a complaint with the FTC?
The easiest way to file a complaint is through the FTC’s Consumer Complaint Assistant. You can complete an online form or call the FTC’s toll-free number at 1-877-FTC-HELP (1-877-382-4357) to file a complaint. Ensure you have all the necessary information about the company, such as the name, address, and phone number.
What happens after you file a complaint with the FTC?
Once you file a complaint, the FTC will review it and determine if they need action. The agency may forward your complaint to another agency or regulator if appropriate. You will also receive a complaint reference number, which you can use to track the progress of your complaint.
Final Thoughts
Nobody ever wants to be in a situation where their insurance company refuses to honor a claim. It’s a scary and frustrating experience that can leave you with financial headaches and emotional stress. If you’re stuck in this situation, don’t lose hope.
Arm yourself with the knowledge to fight back by following the above steps. Remember that taking a stance on your rights is your entitlement as a policyholder, and it’s your right to ask the insurance company to keep their end of the bargain.