Northern Beaches Mums Group
Northern Beaches Mums Group

The Insight on Car Insurance Dispute Resolution Process

While most claims on car insurance are accepted, many of them end up in disputes. What happens if there is a disagreement between the insurance company and the customer on the decision made by the company?

Therefore, it is essential for all car owners to understand the car insurance dispute resolution process and what steps to take in case of a dispute.

The process of car insurance dispute resolution:

In case your car has been damaged in a collision and you feel that the insurance company isn’t acting fair, you should know your options as a customer. One of the first steps in the car insurance dispute resolution process is to file a complaint and ask the company to reconsider its decision.

Typically, all licensed insurance companies follow a standard complaint-handling protocol. However, some of the nuances of the process can vary from company to company. Before disputing the claim, get a detailed explanation of the company’s decision and try to understand the technicalities about the insurance policy.

There could be many reasons as to why the insurance company rejects or negate your claim, and it may opine that the policy does not cover the damage for which you are making a claim. Here are some of the most common reasons as to why your insurer may also decide to pay none or only a portion of the claim.

  • A list of exclusions pertaining to specific situations and circumstances that do not cover your claim.
  • The customer has not met the outlined conditions and responsibilities in the policy.
  • The policy has not been renewed and thus is cancelled.
  • Failure to disclose can impact the ability to claim on the policy.
  • Then customer has not maintained his vehicle properly and thus increased the risk of damage.

If things do not work out, contact the company’s complaint officer who takes care of the complaint process.? Discuss the scenario with him regarding the insurance claim and ask him to provide you with a letter that states the final position of the insurance company on your complaint.

Steps that can be considered for the car insurance dispute resolution procedure:

  • Go for mediation, which is an informal process where the insurance company representative sits down with you and discusses your case. The mediation meeting can be held via phone or in person.
  • You and your insurance company may consider the option of a neutral evaluation in order to resolve the dispute. A private evaluator is hired who then reviews the mediation process and gives a neutral opinion. However, his decision is non-binding for both parties, and either can agree or disagree with him.
  • If the issue does not get resolved, the next step in the car insurance dispute resolution process is to apply for an appointed arbitrator. However, the initiative must come from you, and there is a time limit to apply for the step.
  • The Customers can make an appeal within a month from the perspective of law. Take the guidance of a legal counsel to ensure that there is a legal technicality involved that can impact the case in your favour. Both you and the insurance company can initiate an appeal in the car insurance dispute resolution system.

The general codes of practice for the insurance companies demand them to be fair and honest in dealings with their customers. Still, every customer should be aware of the auto insurance dispute resolution process and understand the steps involved. It is essential to pick a reputed and honest insurance company and get the right coverage for your vehicle. The aim is to keep your vehicle safe and protected and get fair claims in case of any damage.