Detailed Answer
If your auto damage claim was closed without notice, you can take practical steps to get the insurer to reopen the claim. Below is a clear, step-by-step process you can follow under South Dakota law. This information explains common procedures and options; it is not legal advice.
1. Confirm the closure and gather the file information
Call the insurer’s claims phone number and ask for the claim number, date of closure, reason the company closed the claim, and the name and contact information of the adjuster who handled the file. Ask for any documents they used to make the decision and for a statement of your file’s status in writing (email or letter).
2. Preserve and gather evidence
Collect all documents and proof that support why the claim should remain open: photos of the damage, repair estimates, repair invoices, tow or storage receipts, police reports (if any), medical records (if applicable), emails, text messages, and any new evidence that post-dates the original closure. Preserve the vehicle’s condition and any replaced parts if possible until the dispute resolves.
3. Make a prompt written request to reopen
Send a written request to the insurer asking that the carrier reopen the claim. Put the request in writing and include:
- Policy number and claim number
- Specific reason(s) you believe the claim was closed in error (for example: new evidence, incomplete inspection, missed repairs)
- Copies of any supporting documents or new evidence
- A clear request for the insurer to reopen the claim and re-evaluate damage and repair estimates
- A deadline for response (commonly 10–14 days from receipt)
Send the letter by certified mail with return receipt, or by a trackable commercial delivery method. Keep copies of everything you send.
4. Use the insurer’s internal appeal or dispute process
Most insurers have an appeal, complaint, or “claim review” procedure. Ask for the internal appeal steps and follow them precisely. Keep records of all calls, including dates, times, names, and what was said.
5. Escalate to the South Dakota Division of Insurance if needed
If the insurer refuses to reopen the claim or does not respond, you can file a complaint with the South Dakota Division of Insurance. The Division can review whether the insurer followed state insurance laws and may help obtain information from the company. See the Division’s consumer pages: South Dakota Division of Insurance.
6. Consider formal dispute tools in your policy
Read your policy. It may include dispute-resolution mechanisms such as an appraisal clause for property damage (independent appraisers and an umpire) or mandatory arbitration. If your policy contains those procedures, follow them carefully because they can affect your right to sue.
7. Preserve your legal rights and consider legal action
If the insurer still refuses to reopen the claim and you have strong evidence, you may consider filing a civil action. For property damage and many other tort claims, South Dakota’s statutes of limitations apply — check Title 15 of the South Dakota Codified Laws for applicable deadlines before you miss them: SDCL Title 15 (Civil Actions). For insurance-specific law and general rules governing insurer conduct, see SDCL Title 58: SDCL Title 58 (Insurance).
8. When to hire an attorney
Consider consulting a lawyer if the insurer’s refusal causes significant financial loss, if the case involves complex coverage issues, or if the insurer engaged in bad-faith conduct. An attorney can help evaluate whether the carrier violated insurance statutes or acted unlawfully under South Dakota law and can explain court or arbitration options.
Practical timeline (typical)
- Day 0–3: Confirm closure and request written explanation.
- Day 3–10: Gather and send supporting documents; submit written reopen request.
- Day 10–30: Follow insurer’s internal appeal process; escalate if no adequate response.
- After 30 days: If unresolved, file a complaint with the South Dakota Division of Insurance and evaluate legal options.
Important legal note: South Dakota insurance law (see SDCL Title 58) restricts unfair settlement practices and requires insurers to act in good faith when processing claims. The Division of Insurance can accept consumer complaints and investigate potential violations: https://dlr.sd.gov/insurance/.
This content is for general informational purposes only and is not legal advice. Consult a licensed attorney to discuss your particular situation.
Helpful Hints
- Document everything. Keep a claim diary with dates, times, names, and summaries of all communications.
- Send key communications in writing (email or certified mail) so you have proof of timing and content.
- Do not sign a global release or final settlement check that closes all claims unless you understand and accept that it resolves the matter fully.
- Ask for a copy of the insurer’s claim file. South Dakota law and insurer policies often require the company to provide certain information on request.
- If repairs are needed quickly (safety concerns), get an independent estimate and notify the insurer in writing that you will pursue necessary repairs — keep receipts.
- If the insurer won’t reopen the claim but you have new evidence (new photos, invoices, or expert opinions), clearly highlight that evidence in your reopening request; new facts can justify reopening.
- Use the Division of Insurance as a resource for complaints and guidance: dlr.sd.gov/insurance.
- Act quickly to protect any legal rights. Statutes of limitations can bar claims if you wait too long; see SDCL Title 15 for timing rules: SDCL Title 15.
Sample short reopen request (use your own facts)
To: [Insurer Name] – Claims Dept.
Re: Policy #[policy #], Claim #[claim #]
I received notice that this claim was closed on [date]. I request that you reopen and re-evaluate the claim because [brief reason — e.g., new repair estimate, additional damage discovered, missing inspection]. Enclosed are copies of [list evidence]. Please confirm receipt and advise within 14 days whether you will reopen this claim.
Sincerely,
[Your name] | [contact info]