How to Dispute an Auto Insurance Claim in 2024
Wondering how to dispute and appeal an auto insurance claim? You can dispute the claim by providing an appeal letter and sufficient evidence to prove the denial wrong but may have to involve a lawyer. Also, each state decides how long you have when disputing insurance claims and payouts, usually up to 5 years.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
UPDATED: Feb 14, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 14, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- You have the option to appeal your auto insurance claim if you don’t agree with it
- The appeals process involves gathering evidence, writing an appeal letter, and in some cases, hiring an attorney
- Winning a claims appeal depends on the reason for the denial and your ability to prove it wrong
Getting into an auto accident and going through the process of filing an auto insurance claim can be a major headache if you don’t have all your ducks in a row.
Even worse is finding out you won’t have the coverage you need, and your claim is being denied. Claims can be denied for a lot of reasons, but the good news is that you can appeal. So do you know how to dispute and appeal an auto insurance claim? We’ll explain below.
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How to Appeal an Auto Insurance Claim That’s Been Denied
If you’ve had to file a car insurance claim denied by your insurance company, you may wonder what your rights are, and how you can appeal.
There is a list of steps you can take to appeal your auto insurance claim. They include the following:
- Review your claim denial or settlement offer letter. It’s important to understand the insurance company’s stance on your claim. Usually, it’ll point out why they made the decision they did and it might give you a starting point for refuting the denial or lowball settlement offer.
- Research your auto insurance claims rights. Knowing your rights will put you in a better position to appeal your claim.
- Write a Claims Appeal Letter. Once you’ve reviewed the information contained in the auto insurance claim denial, start gathering the information you need to dispute the insurance claim and write your claims appeal letter.
Once you’ve written your claims appeal letter, it’s time to provide all of your evidence to dispute your claim.
Each state has a different statute of limitations. Let’s look at a summary of the statute of limitations of every state.
| State | Bodily Injury | Property Damage |
|---|---|---|
| Alabama | 2 years | 2 years |
| Alaska | 2 years | 6 years |
| Arizona | 2 years | 2 years |
| Arkansas | 3 years | 3 years |
| California | 2 years | 3 years |
| Colorado | 3 years | 3 years |
| Connecticut | 2 years | 3 years |
| Delaware | 2 years | 2 years |
| District of Columbia (D.C.) | 3 years | 3 years |
| Florida | 4 years | 4 years |
| Georgia | 2 years | 4 years |
| Hawaii | 2 years | 2 years |
| Idaho | 2 years | 3 years |
| Illinois | 2–3 years | 5 years |
| Indiana | 2 years | 2 years |
| Iowa | 2 years | 5 years |
| Kansas | 1 year | 2 years |
| Kentucky | 1 year | 2 years |
| Louisiana | 1 year | 1 year |
| Maine | 6 years | 6 years |
| Maryland | 3 years | 3 years |
| Massachusetts | 3 years | 3 years |
| Michigan | 3 years | 3 years |
| Minnesota | 2 years | 6 years |
| Mississippi | 3 years | 3 years |
| Missouri | 5 years | 5 years |
| Montana | 3 years | 2 years |
| Nebraska | 4 years | 4 years |
| Nevada | 2 years | 3 years |
| New Hampshire | 3 years | 3 years |
| New Jersey | 2 years | 6 years |
| New Mexico | 3 years | 4 years |
| New York | 3 years | 3 years |
| North Carolina | 3 years | 3 years |
| North Dakota | 6 years | 6 years |
| Ohio | 2 years | 2 years |
| Oklahoma | 2 years | 2 years |
| Oregon | 2 years | 6 years |
| Pennsylvania | 2 years | 2 years |
| Rhode Island | 3 years | 10 years |
| South Carolina | 3 years | 3 years |
| South Dakota | 3 years | 6 years |
| Tennessee | 1 year | 3 years |
| Texas | 2 years | 2 years |
| Utah | 4 years | 3 years |
| Vermont | 3 years | 3 years |
| Virginia | 2 years | 5 years |
| Washington | 3 years | 3 years |
| West Virginia | 2 years | 2 years |
| Wisconsin | 3 years | 3 years |
| Wyoming | 4 years | 4 years |
You see how the statutes are different for each state. If you’re ever in an accident out of your home state, research the statute of limitations in case your claim is denied or if you have to pursue legal action.
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Evidence for Disputing Insurance Claims and Payouts
Once you’ve gathered enough evidence, you’ll need to provide it to the insurance company to dispute your claim. Some of the evidence might include:
- Dates
- Receipts
- Physical and digital copies of documents related to your claim
- Photos of property damage and injuries
- Invoices from medical providers and auto repair shops
The more information you have, the smoother the claims process will go. Sometimes, a claim is denied solely because of missing information. So make sure you have all of the information you need to submit to the insurance company to dispute your claim.
Common Denial Reasons
- The claim exceeds the policy limits
- You weren’t named on the insurance policy
- You missed a payment or filing deadline for the claim
- You were at fault in the accident
Make sure none of this applies to you before you file an appeal.
To prevent your claim from being denied, you can do the following:
- Choose a higher coverage level
- Add drivers to your policy
- Update your auto insurance company with any changes
Doing the above can help decrease the chances of your claim being denied.
When you enroll in an auto insurance policy, you’ll have something called a coverage limit or coverage rule. Each coverage limit varies by state. The Insurance Information Institute lists these coverage limits on its website, and we’ll summarize that information in a table below.
| States | Coverages | Limits |
|---|---|---|
| Alabama | Bodily injury and property damage liability | 25/50/25 |
| Alaska | Bodily injury and property damage liability | 50/100/25 |
| Arizona | Bodily injury and property damage liability | 15/30/10 |
| Arkansas | Bodily injury and property damage liability; personal injury protection | 25/50/25 |
| California | Bodily injury and property damage liability | 15/30/5 |
| Colorado | Bodily injury and property damage liability | 25/50/15 |
| Connecticut | Bodily injury and property damage liability; uninsured/underinsured motorist protection | 25/50/20 |
| Delaware | Bodily injury and property damage liability; personal injury protection | 25/50/10 |
| Washington, D.C. | Bodily injury and property damage liability; uninsured/underinsured motorist protection | 25/50/10 |
| Florida | Property damage liability and personal injury protection | 10/20/10 |
| Georgia | Bodily injury and property damage liability | 25/50/25 |
| Hawaii | Bodily injury and property damage liability; personal injury protection | 20/40/10 |
| Idaho | Bodily injury and property damage liability | 25/50/15 |
| Illinois | Bodily injury and property damage liability; uninsured/underinsured motorist protection | 25/50/20 |
| Indiana | Bodily injury and property damage liability | 25/50/25 |
| Iowa | Bodily injury and property damage liability | 20/40/15 |
| Kansas | Bodily injury and property damage liability; personal injury protection | 25/50/25 |
| Kentucky | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist protection | 25/50/25 |
| Louisiana | Bodily injury and property damage liability | 15/30/25 |
| Maine | Bodily injury and property damage liability; uninsured/underinsured motorist coverage; medical payments | 50/100/25 |
| Maryland | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist coverage | 30/60/15 |
| Massachusetts | Bodily injury and property damage liability; personal injury protection | 20/40/5 |
| Michigan | Bodily injury and property damage liability; personal injury protection | 20/40/10 |
| Minnesota | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist coverage | 30/60/10 |
| Mississippi | Bodily injury and property damage liability | 25/50/25 |
| Missouri | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/25 |
| Montana | Bodily injury and property damage liability | 25/50/20 |
| Nebraska | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/25 |
| Nevada | Bodily injury and property damage liability | 25/50/20 |
| New Hampshire | Financial responsibility only | 25/50/25 |
| New Jersey | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist coverage | 15/30/5 |
| New Mexico | Bodily injury and property damage liability | 25/50/10 |
| New York | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist coverage | 25/50/10 |
| North Carolina | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 30/60/25 |
| North Dakota | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist coverage | 25/50/25 |
| Ohio | Bodily injury and property damage liability | 25/50/25 |
| Oklahoma | Bodily injury and property damage liability | 25/50/25 |
| Oregon | Bodily injury and property damage liability; personal injury protection; uninsured/underinsured motorist coverage | 25/50/20 |
| Pennsylvania | Bodily injury and property damage liability; personal injury protection | 15/30/5 |
| Rhode Island | Bodily injury and property damage liability | 25/50/25 |
| South Carolina | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/25 |
| South Dakota | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/25 |
| Tennessee | Bodily injury and property damage liability | 25/50/15 |
| Texas | Bodily injury and property damage liability; personal injury protection | 30/60/25 |
| Utah | Bodily injury and property damage liability; personal injury protection | 25/65/15 |
| Vermont | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/10 |
| Virginia | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/20 |
| Washington | Bodily injury and property damage liability | 25/50/10 |
| West Virginia | Bodily injury and property damage liability; uninsured/underinsured motorist coverage | 25/50/25 |
| Wisconsin | Bodily injury and property damage liability; uninsured/underinsured motorist coverage; medical payments | 25/50/10 |
| Wyoming | Bodily injury and property damage liability | 25/50/20 |
Notice a lot of acronyms? Here’s what they stand for: BI stands for bodily injury, PD is property damage, Liab is liability, PIP is personal injury protection, medical payments are labeled as Med Pay, UM is uninsured motorist, and UIM is underinsured motorist.
When a Claim is Denied by an Underinsured At-Fault Driver
In some cases, you might face a situation where you’re not at fault and the other party’s insurance denied the claim. In that case, you’ll want your insurance company to go to work for you.
Claims might be denied because the at-fault driver’s car insurance coverage doesn’t cover bodily injury or property damage. That’s when underinsured motorist insurance kicks in.
Underinsured motorist coverage (UIM) pays costs for you, the no-fault driver when the at-fault driver doesn’t have enough to cover the damages. If your claim is denied by the company of an underinsured at-fault driver then your auto insurance company can often work with you to help appeal the auto insurance claim decision.
Learn How to Appeal an Auto Insurance Claim
It is possible to appeal a decision from your car insurance company if you’re not satisfied with their settlement offer or if they have denied your claim for reasons you don’t think apply to your situation. You will need to gather documents and information to support your appeal, and you may need to engage a lawyer.
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Frequently Asked Questions
What is an auto insurance claim dispute?
An auto insurance claim dispute refers to a situation where the insured party disagrees with the decision made by their insurance company regarding their auto insurance claim. This disagreement can be related to coverage, liability determination, claim settlement amount, or any other aspect of the claim.
What are the common reasons for disputing an auto insurance claim?
The six most common reasons for disputing an auto insurance claim include:
- Disagreement over liability for the accident
- Denial of coverage
- Undervaluation of the claim
- Delays in claim processing
- Disputes regarding repairs or replacement parts
- Dissatisfaction with the settlement amount offered
How should I start the dispute process?
To start the dispute process, you should contact your insurance company directly and inform them of your disagreement with their decision. Provide them with any supporting documentation or evidence that you believe strengthens your position. It’s essential to communicate your concerns clearly and in writing.
What steps should I take to dispute an auto insurance claim?
The following five steps can be helpful when disputing an auto insurance claim:
- Review your insurance policy: Familiarize yourself with the terms, conditions, and coverage limits of your policy.
- Gather evidence: Collect all relevant documents, such as accident reports, photographs, witness statements, and medical records.
- Communicate with your insurance company: Contact your insurer and explain the details of your dispute in writing. Provide any supporting evidence and keep a record of all correspondence.
- Consider mediation or arbitration: If your insurer doesn’t resolve the dispute to your satisfaction, you may explore alternative dispute resolution methods such as mediation or arbitration.
- Consult an attorney: If the dispute remains unresolved, you may want to seek legal advice from an attorney specializing in insurance claims.
What is the appeals process for an auto insurance claim?
The appeals process for an auto insurance claim typically involves the following five steps:
- Understand your insurer’s appeals process: Review your insurance company’s policy or contact their customer service to understand the specific steps involved in filing an appeal.
- File an appeal: Submit a formal appeal letter to your insurance company, clearly stating the reasons for your disagreement and providing any supporting evidence.
- Provide additional information: If requested by your insurer, supply any additional documentation or information that supports your appeal.
- Follow up: Keep track of your appeal’s progress by maintaining regular communication with your insurance company. Document all correspondence and conversations.
- Seek external assistance if needed: If the appeal is denied, you may consider reaching out to your state insurance department or regulatory body for further assistance.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.