Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
After a collision, Wyoming insurers must handle claims fairly and promptly. If your insurance company delays or denies payment without a valid reason, you can take several steps to challenge those tactics under Wyoming law.
1. Review Your Policy and Request a Written Explanation
Carefully read your auto policy to understand coverage, exclusions, and timelines. If the insurer denies or delays your claim, send a written request for the specific reason and cite the date of your original claim. Keep copies of all correspondence.
2. Cite Wyoming’s Unfair Claim Settlement Practices
Wyoming law prohibits unfair practices, including unreasonable delays or denials. See Wyo. Stat. § 26-9-124 (Unfair Claim Settlement Practices). This statute lists prohibited acts such as:
- Failing to acknowledge or act promptly on communications.
- Not attempting in good faith to investigate claims.
- Unreasonable denial of claims without proper investigation.
3. File a Complaint with the Wyoming Department of Insurance
If your insurer doesn’t respond or you believe it acted unfairly, file a formal complaint with the Wyoming Department of Insurance (Consumer Complaint Portal). The Department investigates unfair practices and can order corrective action.
4. Use Internal Appeals and Demand Letters
Most policies include an internal appeal process. Follow the insurer’s appeal guidelines precisely. If the appeal fails, send a demand letter outlining your claim, referencing the statute, and stating you may pursue legal action for bad faith.
5. Consider Appraisal or Mediation
Many auto policies allow appraisal or mediation to resolve value disputes. Appraisal involves independent appraisers and an umpire. Mediation is a facilitated negotiation process. Both can force settlement without a lawsuit.
6. File a Bad Faith Claim or Lawsuit
If all else fails, consult an attorney about filing a bad faith insurance claim in Wyoming state court. A successful bad faith claim can recover policy benefits plus extra damages and attorney fees. You typically have four years from the date of the denial to file suit under Wyo. Stat. § 1-3-105 (Statute of Limitations).
Helpful Hints
- Document everything: phone calls, emails, dates, times, and names.
- Send all written requests via certified mail with return receipt.
- Keep a timeline of your claim and insurer responses.
- Use the Department of Insurance as a resource before suing.
- Meet all policy deadlines for notice, proof of loss, and appeals.
- Consider dispute resolution clauses: appraisal, mediation, or arbitration.
- Ask for a coverage determination in writing if you get a partial denial.