What To Do When Your Insurance Company Denies The Claim?

The compilation of records in the list comes from state insurance departments, which individuals can turn to for assistance if they believe an insurance company is not treating them fairly. Here is some way you can do when insurance company denies the claim.


It is no surprise that most complaints are about how claims are handled, which is the main reason people get insurance. According to the NAIC report in June 2021, about 18% of complaints were due to delays in receiving claims. The next common complaint, making up over 13% of all complaints, was unsatisfactory claim amounts offered by insurance companies. Denial of claims made up just over 12.5% of all complaints.

It’s important to note the types of insurance that receive the most complaints. The findings reveal that accident and health insurance disputes are the most frequent, making up approximately 41% of complaints. Auto insurance comes next with a little over 30.5%, followed by homeowners insurance at over 15%. Life and annuity complaints make up about 8% of the list, while the remaining complaints are relatively minor.

It is crucial for consumers to be aware of the highest number of complaints in each insurance category. For example, when making a health insurance claim, it is important to be cautious, and the same level of vigilance should be maintained for auto or homeowners claims. Here are four steps you can take to combat an insurer who is delaying payment, rejecting your claim, or making an inadequate settlement offer.

Keep Pristine Records

Claims are important, so it’s crucial to document your actions before an accident. To insure your belongings at home, it’s helpful to keep receipts and records, especially for expensive items. One suggestion is to use a video camera to record all the contents of your home and store the video in a secure location outside your house, like the office or a safe deposit box. If you need to dispute a claim, make sure to keep a detailed record of your conversations, including who you spoke to, when, and what was discussed.

Untrustworthy insurance companies try hard to complicate the claims process, so having proof of their sneakiness can greatly benefit your case.

Utilize the State Regulator to Your Benefit

It is advisable to consider taking an insurance company to court only as a final option. This is because it can prolong the claim process and cause significant delays in receiving the necessary funds for home replacement or medical bill payments. Initially, it is recommended to try resolving the issue by directly communicating with your insurance agent or provider in a calm and patient manner. It is important to document every step of the process. If they prove uncooperative, seeking assistance from a state insurance regulator can help expedite the process.

Know Your Insurance Policy and Rights

Reviewing an insurance policy, whether it’s new or existing, can provide valuable information about the claim process. It includes important details such as coverage, claim filing requirements, submission deadlines, and how damage reimbursement is calculated.

It can be beneficial to have a lawyer’s assistance during a deposition when an insurance company is questioning you about an accident or the worth of your belongings for property and casualty insurance. This is particularly important if the amounts involved are significant. It is equally crucial to understand your rights in case of a disagreement, which should be clearly outlined in a policy or discussed with your agent, insurance company, or state regulator.

Be Persistent

Encountering problems with insurance claims can be a frustrating and time-consuming experience. However, most cases are handled correctly and ethically by insurance firms. In challenging situations, individuals should stay proactive by regularly following up with their insurance provider and keeping detailed records of the entire process.

Conclusion of Article Insurance Company Denies The Claim

There are also studies available that evaluate different insurance companies. It’s a good idea to investigate your current provider and refer to other studies when looking for a new one. While most insurance claims are handled well and on time, it’s important to be aware of potential challenges if things don’t go smoothly.