What happens if I disagree with State Farm’s decision on my car insurance claim?

Recently, you filed a claim for damage to your vehicle with your auto insurance company, State Farm. Unfortunately, you just learned that the company denied your claim. This stressful experience probably has you wondering what happens if you disagree with State Farm’s decision on your car insurance claim.

Keep reading to learn the answer to this question and some advice about the importance of knowing the types of car insurance coverage included in your policy.

What to Do First if You Disagree With State Farm’s Decision on Your Car Insurance Claim

Here is some good news: if State Farm denies your auto insurance claim, it is not necessarily the end of the process. You have the legal right to appeal the denial if you disagree with State Farm’s decision on your car insurance claim.

Before you start drafting a letter of appeal, it is important to learn as much as possible about why the company denied your claim. You may have received a snail mail letter detailing why State Farm denied your claim. (For more information, read our “What information do I need to file a car insurance claim with State Farm?“).

If you have questions about the denial or what the letter states, call your agent, if you have one, to get clarification.

Collect Evidence When You Disagree With State Farm’s Decision on Your Car Insurance Claim

Once you know why State Farm denied your claim, you can collect evidence to help with your appeal. Evidence can include:

• Police reports
• Medical reports
• Photos and videos from the accident scene
• Statements from eyewitnesses

In addition, be sure to have a copy of your car insurance policy and what it covers. Suppose State Farm incorrectly concluded that you don’t have adequate car insurance coverage, but you have full coverage on your vehicle, including comprehensive car insurance.

Have the policy ready as part of your appeal.

How To Write a Letter Of Appeal if You Disagree With State Farm’s Decision on Your Car Insurance Claim

After gathering your evidence, it is time to work on your appeal letter. If you spotted an error in the claims denial letter, you can clearly explain what was incorrect and provide proof to support your argument.

You can also review each piece of evidence and provide as much detail as possible about how and why each document supports your claim.

Reasons Why State Farm Might Deny a Claim

State Farm can deny an auto insurance claim for several reasons. For instance, if you accidentally forgot to pay your auto insurance bill, your claim will probably be denied. In addition, while some auto insurance companies have a grace period, not all of them do, so staying on top of your policy payments is extra important.

Another reason companies deny claims is if the claim includes any false or misleading details. If this is the case, the appeals letter is an ideal opportunity to correct or clarify anything in error in the original claim.

Finally, State Farm may deny your claim if you lack the correct car insurance coverage needed to pay for an accident. For instance, you might not have collision coverage on a very old vehicle, so if it’s in an accident, your damages might not be covered.

Read more:

• How does the car insurance claims process differ for uninsured/underinsured motorist coverage with State Farm?
• What should I do if my car insurance claim is denied?

Case Studies: Disagreeing With State Farm’s Decision on Car Insurance Claims

Case Study 1: Denied Claim Due to Insufficient Evidence

John filed a claim with State Farm after his car was damaged in an accident. However, State Farm denied his claim, citing insufficient evidence. John believed that the evidence he provided was enough to prove the accident wasn’t his fault.

He decided to appeal the decision and collected additional evidence, including witness statements and accident reconstruction reports. After submitting a detailed appeal letter with the new evidence, State Farm reviewed the case again and overturned their initial decision, approving John’s claim.

Case Study 2: Claim Denied Based on Policy Coverage

Mary’s car was stolen, and she filed a claim with State Farm. Unfortunately, State Farm denied her claim, stating that her policy did not cover theft. Disagreeing with the decision, Mary researched her policy and found that she had indeed purchased comprehensive coverage, which should cover theft.

She gathered her policy documents and sent a clear and concise appeal letter to State Farm, highlighting the coverage in her policy. After reviewing the appeal and confirming the coverage, State Farm admitted their mistake and approved Mary’s claim.

Case Study 3: Claim Denied Due to Late Payment

David was involved in an accident and filed a claim with State Farm. However, State Farm denied his claim, stating that his policy had lapsed due to non-payment.

Disappointed with the decision, David realized that he had forgotten to pay his insurance premium on time. Despite this, he decided to appeal, explaining the circumstances that led to the late payment and providing proof of payment.

Understanding the situation, State Farm reviewed the appeal and decided to grant an exception, considering David’s history as a long-time customer with a good payment record. They approved his claim after he made the outstanding premium payment.

Final Thoughts on What Happens if You Disagree With State Farm’s Decision on Your Car Insurance Claim

Receiving a letter of denial in the mail can be very distressing, especially after already being in a car accident. However, State Farm’s decision could change.

By learning why State Farm denied your claim, collecting evidence to support your case, and writing a compelling letter of appeal, you might get a better ending to your auto insurance claim.

In addition, to help prevent a claim from possibly being denied again, you can contact your agent, if you have one, to ask about how much car insurance you need to cover you in the event of an accident.