Detailed Answer

Understanding Insurance Company Reliance on Accident Reports

Insurance companies often rely on law enforcement or accident reports when evaluating claims. In South Dakota, the Unfair Insurance Claims Practices Act (Title 58, Chapter 12 of the South Dakota Codified Laws) prohibits insurers from misrepresenting facts, denying claims without a reasonable investigation, or relying on inaccurate information to undervalue or reject a claim. See SDCL 58-12-2(1) (misrepresenting facts or policy provisions) and SDCL 58-12-2(8) (failing to promptly investigate or acknowledge communications).

Key Steps to Challenge an Inaccurate Report

1. Obtain the Official Accident Report. Request a certified copy from the law enforcement agency that filed the report.
2. Identify Any Inaccuracies. Compare the report against your own notes, photographs and witness statements to pinpoint errors.
3. Request a Correction or Supplement. Contact the law enforcement agency’s records division and submit supporting evidence. Many departments allow you to file an amendment or supplement.
4. Notify Your Insurer in Writing. Send the corrected report or evidence via certified mail. Cite the insurer’s duty under SDCL 58-12-19 (requirement to promptly affirm or deny coverage) and demand a reevaluation.
5. File a Complaint with the Division of Insurance. If the insurer continues to rely on the inaccurate report, you can lodge a complaint online with the South Dakota Division of Insurance under SDCL 58-3A-37 (unfair claims practices).
6. Consider Legal Action for Bad Faith. South Dakota law recognizes a duty of good faith in insurance claims. You may have grounds for a bad faith lawsuit if the insurer unreasonably denies or undervalues your claim. Consult a qualified attorney to evaluate your options.

Legal Protections Under South Dakota Law

Key provisions of South Dakota’s Unfair Insurance Claims Practices Act include:

• Misrepresenting facts or policy provisions: SDCL 58-12-2(1) (link).
• Failing to promptly investigate and resolve claims: SDCL 58-12-2(8) (link).

When to Seek Legal Advice

If your insurer persists in denying or undervaluing your claim based on an inaccurate report, consider consulting an attorney experienced in insurance disputes. A lawyer can help assess whether you have a bad faith claim and represent you in court or settlement negotiations.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in South Dakota for advice tailored to your situation.

Helpful Hints

• Keep all communications with the insurer in writing and date-stamped.
• Document names and roles of everyone you talk to at the law enforcement agency and insurance company.
• Gather independent evidence: photos, medical records and witness statements.
• Meet all policy deadlines—file corrections and claims promptly.
• Retain copies of every document, report and correspondence.
• When filing a complaint with the Division of Insurance, include your policy number and copies of both the original and corrected reports.