Detailed Answer
After a collision, Indiana law requires insurers to handle claims promptly and fairly. If your insurer delays communication, refuses to pay, or uses denial tactics, you can take several steps to challenge their conduct:
- Review your policy and timelines. Check your auto insurance policy for deadlines to file a claim. Under the Unfair Claim Settlement Practices Act (IC 27-4-1), insurers must acknowledge or deny claims within a reasonable time, generally within 15 business days of receiving proof of loss.
- Gather and organize evidence. Compile photographs, police reports, repair estimates, and medical records. Create a clear timeline of events and communications.
- Send a detailed demand letter. Mail a certified letter to your insurer summarizing the accident, citing policy provisions, attaching evidence, and requesting payment. Set a firm deadline (e.g., 10 days) for a response. Reference IC 27-4-1 to remind them of their statutory obligations.
- File a complaint with the Indiana Department of Insurance. If the insurer ignores your demand or unreasonably denies your claim, submit a complaint online at the Indiana Department of Insurance. The Department investigates unfair claim practices and can impose penalties on the insurer.
- Consider mediation or appraisal. Many policies include an appraisal or mediation clause to resolve value disputes. These alternative dispute resolution methods keep you out of court and can lead to a binding decision.
- File a lawsuit for bad faith. If you suffered significant financial harm, you may bring a bad faith claim in civil court. Indiana courts require insurers to act in good faith. You can recover damages for breach of contract and related losses. Consult an attorney for deadlines (Statute of Limitations: generally two years under IC 34-11-2-4).
Disclaimer: This article does not provide legal advice. For guidance tailored to your situation, consult a qualified attorney licensed in Indiana.
Helpful Hints
- Maintain a log of all phone calls, emails, and letters.
- Send correspondence via certified mail, return receipt requested.
- Take clear, detailed photos of vehicle damage and the accident scene.
- Keep copies of repair estimates and medical bills.
- Track deadlines carefully: mark them on a calendar or use reminders.
- Review your policy’s internal appeal or dispute resolution process.
- Explore free or low-cost legal clinics if you cannot afford an attorney.