Detailed Answer
This article explains how to respond when your auto insurer delays or denies your collision claim under Tennessee law. It covers relevant statutes, administrative remedies, and steps you can take to hold the insurer accountable. Disclaimer: This is for informational purposes only and does not constitute legal advice.
1. Understand Tennessee’s Unfair Claims Settlement Practices Act
The Unfair Claims Settlement Practices Act (UCSPA) governs insurer conduct in Tennessee. It lists prohibited tactics such as unreasonable delays, failure to acknowledge communications, and denying claims without a reasonable basis. See Tenn. Code Ann. § 56-7-105 (link).
2. Document All Communications and Claim History
Keep a detailed log of every correspondence—emails, letters, phone calls. Note dates, times, the person you spoke with, and a summary of the conversation. Save copies of appraisal reports, repair estimates, medical bills, and demand letters you submit.
3. Send a Formal Demand Letter
Draft a written demand outlining the facts of the collision, your coverage, the amount owed, and the insurer’s legal duty under the insurance contract. Demand payment within a reasonable timeframe (e.g., 14 days). Certified mail with return receipt provides proof of delivery.
4. File a Complaint with the Tennessee Department of Commerce & Insurance
If your insurer ignores or rejects your demand, lodge an administrative complaint online. The department investigates unfair claim settlement practices and can order penalties. Visit the Tennessee Division of Insurance Consumer Resources: File a Complaint.
5. Explore Civil Remedies
Under Tenn. Code Ann. § 56-7-109, a first-party insured may sue for statutory penalties and attorney’s fees when an insurer violates the UCSPA. In addition, you can pursue breach of contract and, in limited circumstances, bad faith claims in Tennessee courts. The statute of limitations for breach of contract is three years. (Tenn. Code Ann. § 28-3-109.)
6. Consider Alternative Dispute Resolution
Your insurance policy may require mediation or appraisal before litigation. Review your policy’s dispute resolution clause. Mediation can yield a faster, less expensive resolution.
Helpful Hints
- Review your policy definitions and deadlines; missing a deadline can forfeit your rights.
- Keep all repair invoices and estimates in one file for easy reference.
- Use certified mail or email read receipts to document insurer communications.
- Consult a licensed Tennessee attorney for personalized advice on complex bad faith or statutory penalty claims.
- Regularly follow up in writing if the insurer does not respond within 15–30 days.