You’re upset that your auto insurance company won’t pay to repair your car after an accident. Perhaps you feel like they unjustly denied your renewal or spiked your premium when you’ve been a good driver all year. If you tried to explain your position to them without results, consider filing a complaint with the Department of Insurance in your state.
“They will investigate your complaint and work with the insurance company to resolve it,” said Janet Ruiz, spokesperson for the Insurance Information Institute in San Diego.
According to data from the National Association of Insurance Commissioners (NAIC), tens of thousands of complaints are overturned each year.
Learn more: How does car insurance work? The basics explained.
It might be hard to know when it’s worth going through the time and effort to file an insurance complaint. Here are the most common reasons consumers file complaints against their insurers:
-
It’s been weeks or months since you’ve filed a claim, but there’s been no word whatsoever from the insurance company about a resolution
-
You felt disrespected or mistreated by the claims adjuster
-
The adjuster or your insurance agent mishandled your claim
-
Your claim has been denied without an explanation
-
Your settlement offer seems unfairly low, though they won’t tell you why
-
The insurance company refuses to issue you a policy or renew your existing policy without a valid reason
-
You’re quoted a higher-than-normal price on an auto policy that is not commensurate with your driving record, age, or other determining factors
Learn more: How to switch car insurance companies
First, find the link to your state insurance department’s complaint process on the NAIC website — the search tool is halfway down the page. Most states will have online or written complaint forms that you can fill out, asking you to complete the following information:
-
Your name, address, and telephone number
-
The name of your insurer
-
What type of policy and your policy number
-
Your insurance agent’s contact information, if applicable
-
The nature of your complaint
-
Any documents, photos, and correspondence with the insurer or your agent, including emails and texts that support your complaint
-
The type of resolution you’re looking for
While the complaint process is similar across states, there can be marked differences. Below are four states’ procedures to serve as examples.
The California Department of Insurance provides an online form to file a complaint and downloadable forms that you can mail to the state. However, the department recommends that consumers file a complaint online, as mailing paper forms may delay the process.
Expert tip: The Golden State’s complaint form also informs consumers that if they have filed a bad faith insurance claim against their insurer regarding their dispute, the state will defer its investigation until the lawsuit has been decided in court or settled. However, consumers should still lodge a complaint with the state while the lawsuit is ongoing so the state can have a record of it. After the lawsuit is concluded, the consumer and their bad-faith attorney can submit evidence of insurance law violations.
Learn more: Car insurance requirements in California — and ways to save money
In the Garden State, formal complaints against insurance companies must be submitted in writing — in dark ink and with no highlighted sections so all information is legible. In addition to the standard information mentioned above, the New Jersey Department of Banking and Insurance also asks consumers to include a copy of their auto insurance ID card, a copy of the policy declarations page, and, if applicable, notices of either a nonrenewal, premium increase, or claim denial.
Learn more: Car insurance rates are rising in New Jersey. Here’s how to save.
The Texas Department of Insurance offers thorough step-by-step guides walking consumers through the process of filing a complaint, with optional guides in Spanish. For help with an auto insurance complaint, the Lone Star State recommends consumers follow these steps:
-
Step 1: First, talk to your insurance company to resolve the issue. If you disagree with their decision, let them know why.
-
Step 2: Ask your insurer for an appraisal. It’s a three-appraiser process; The insurance company will provide its own appraiser; you hire and pay for your own appraiser; and you pay half of the cost for a third appraiser, chosen by the other two appraisers, to serve as the “umpire.”
-
Step 3: File a complaint with the state if you disagree with the appraisal results or if you believe your insurer violated any laws. The department details what it can do to resolve issues and what it can’t do, like overrule the decision regarding who was at fault in an accident.
-
Step 4: The department will contact the insurance company, which has 15 days to respond to the complaint, with an option to extend that time for another 10 days. Then the department will let you know how the insurer’s response impacts your complaint.
-
Step 5: If you are dissatisfied with the results of your complaint, the department provides resources to obtain legal help from a bad-faith attorney.
Learn more: Car insurance costs are big in Texas. Here’s how to get the cheapest rates.
In Colorado, consumers are urged to first contact the Colorado Division of Insurance to explain their situation so a complaint analyst can determine whether the agency can help them and what that assistance would look like — including helping them file a complaint, said Bobbie Baca, the division’s director of consumer services for property, casualty, and title insurance.
“While complaints are often warranted, it often happens that a complaint results from a misunderstanding of the complicated world of insurance,” Baca said. “Complaint resolutions may include claim settlements, facilitating communications, and reversal of non-renewals or cancellations.”
Indeed, a total of $4,995,340 last year was recovered for Colorado consumers through the division’s investigations into their auto insurance complaints, according to the FY 2023-24 Colorado DOI Annual Complaint & Recoveries Report.
Expert tip: It’s best to file a complaint with your state’s insurance department rather than with the Better Business Bureau or on other sites. The state departments are officially designated to process complaints and are the only ones that can take enforcement action if necessary.
Below are five tips to help you file a complaint against your car insurance company, from how to go about it alone to when it’s time to seek legal counsel.
Tip 1: Start with your insurance agent. Try to resolve the issue first with your insurer or agent, and if they are not willing or able, ask for their supervisor’s contact information.
“If you are still not satisfied, let them know that you will file a complaint with the Department of Insurance,” Ruiz said. “They may be able to find a resolution without going through the complaint process.”
Tip 2: Know when to skip the phone call. If the concern is directly related to the behavior of your agent, it may be better to skip calling your state’s insurance department and file a complaint first, Baca advised.
Tip 3: Compile supporting financial evidence. When including documents to support your complaint, be sure to have estimates from body repair shops and other figures disputing the insurer’s decision.
Tip 4: Locate an arbitrator. See if the terms of your policy dictate that you first go through either an arbitration or appraisal process with the insurance company. You can find an arbitrator from the American Arbitration Association.
Tip 5: Consider a bad-faith attorney. As a final option, you may want to hire a bad-faith attorney, though state insurance departments typically offer their services for free, Baca said. “We can answer a lot of questions, provide education, point people in the right direction, and if it is something we can investigate, we can help them file a formal complaint,” she said. “If the division is unable to assist the consumer, that is when they may want to consider talking with an attorney.”
Expert tip: Remember, once you hire an attorney, you will no longer be able to communicate directly with your insurance company, Ruiz advised.
Tim Manni edited this article.
