Resolving a dispute with your insurance company can be a hassle, but there are ways of making it less so. Here are some things you should know that can make it a less stressful experience.
Some of the more common reasons for disagreements with insurance companies often stem from things like the amount due on a bill, the amount the company paid on a claim, or maybe the non-payment on a claim. Policy holders can often become frustrated, and with good reason. Individuals assume they will have a hard time dealing with any large company like an insurance carrier, but there are some things that can make it easier.
Just remember, you have rights. The state you live in dictates what insurance companies are allowed do when dealing with individuals. States have enacted laws to prevent unfair practices by insurance companies against individuals. Sates may have different laws but you can learn about them by calling your state insurance department or looking on their website.
Some common regulations are ones that prevent insurance companies from misrepresenting your policy, they can’t knowingly tell you your policy means something that it does not, or that make it illegal for an insurance company to ask for unnecessary forms in order to delay an investigation or payment on a claim. Unnecessary and time-consuming tactics by insurance companies are illegal.
You agent is there to help you, use your agent or broker as an ally. Your agent or broker has a relationship with the insurance company and knows where to go for help.
It is often a good idea to write a letter to the appropriate officer at the insurance company. In your letter, you can state what the problem is and what you think would be a fair resolution.
Legal action should only be considered as a last resort, if nothing else works you can take them to court. Depending on the amount in question you may be able to settle the whole thing in small claims court without a lengthy court battle.
