Handling AA Car Insurance Claim Problems

If your AA Car Insurance claim was denied, you might have several means of recourse. After getting into an accident, the insurance company will examine your claim and will send you a letter indicating whether they will cover it after they complete their investigation. There are many reasons for a legitimate denial to your claim, so it is important to protect yourself.

Know Your Claim

A common reason for a denial is that one or more items being claimed were specifically excluded from the policy. Before you signed the policy, you should have thoroughly understood the declarations page, the insuring agreement, the definitions, the exclusions and any endorsements. Most courts interpret exclusions very narrowly, which is generally beneficial for you, the claimant.

Another common reason for denial is that you had not paid the premiums. In that case your claim will automatically be denied and you do not have grounds for recourse. The company will also deny your claim if you misrepresent or falsify any information. Make sure that you are honest about the incident on the claim form. Do not exaggerate any claims in an effort to get more money.

If you are not sure about any answer on the claim form, tell the agent that you will answer later, and report it at that time. Any false information will give the company an excuse to deny coverage, even if the claim is otherwise legitimate.

Get Everything in Writing

 You are responsible for proving that you should be covered for the damage. The insurance company is responsible for thoroughly proving that they are denying you for legitimate reasons. A good rule of thumb is to get everything in writing. Be sure to request the coverage denial letter and a certified copy of the policy.

Recourse for an Illegitimate Denial

First, write to the insurance company telling them where they are mistaken. Be sure to provide any and all documentation for this that is available.  If the company realizes it is mistaken, they will reopen our claim and re-investigate.

Then, you can refer your denial to the State Insurance Commissioner. If this does not work, hire a bad faith attorney to discuss the denial with the company. Finally, if none of these avenues are fruitful, sue the insurance company for breach of contract or state insurance code violations. Most courts will side with the claimant, unless the insurer did everything strictly by the rules.

With another Driver’s Insurance Company

If your claim is with the other driver’s insurance company, you should hire an attorney to negotiate a settlement, or sue the other driver.  In some states you will have the option of filing a complaint with its Department of Insurance for Third Party Bad Faith.

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