Disclaimer: This content is for educational purposes and does not constitute legal advice.
Detailed Answer
When you file an auto insurance claim after a collision in Utah and your insurer delays or denies it, you can take several steps. Utah law prohibits unfair claim settlement practices. Under Utah Code Ann. § 31A-26-303, an insurer must promptly, fairly, and equitably settle covered claims. If it fails, you may pursue an internal appeal, file a complaint with the Utah Insurance Department, or bring a civil action under Utah Code Ann. § 31A-26-313.
1. Review Your Policy and Document the Collision
First, read your policy’s coverage and exclusions. Note deadlines for filing claims. Gather photos, police reports, repair estimates, and correspondence with the insurer. A clear record strengthens your position.
2. File an Internal Appeal
Most insurers provide an appeal procedure. Submit your documentation and a written demand for reconsideration. Cite delays or denials in violation of Utah Code Ann. § 31A-26-303(3)(a) (requiring good-faith claim handling).
3. File a Complaint With the Utah Insurance Department
If the appeal fails or the insurer stalls, file a complaint online at insurance.utah.gov/file-an-complaint. The Department investigates unfair practices under Utah Code Ann. § 31A-26-303.
4. Send a Formal Demand Letter
Draft a demand letter outlining your claim, supporting facts, and a deadline (e.g., 30 days) for a response. Send it by certified mail to the insurer’s claims department. This letter can form part of your evidence if you proceed to court.
5. Consider Alternative Dispute Resolution
Check your policy for arbitration or mediation clauses. Alternative dispute resolution can resolve issues faster and at lower cost. Utah’s Uniform Arbitration Act (Utah Code Ann. §§ 78B-11-101 et seq.) governs arbitration proceedings.
6. File a Lawsuit for Breach of Contract and Bad Faith
If necessary, file suit in Utah district court. You may claim breach of the insurance contract and a civil remedy for unfair settlement practices under Utah Code Ann. § 31A-26-313. Utah law also allows recovery of attorney fees and court costs if you prevail (Utah Code Ann. § 78B-6-1102).
Helpful Hints
- Keep detailed records of calls, letters, and emails with your insurer.
- Meet policy deadlines for reporting and appealing claims.
- Send all important correspondence by certified mail, return receipt requested.
- Review Utah Code Ann. § 31A-26-303 and § 31A-26-313 to understand insurer obligations.
- Consider consulting a qualified attorney if the insurer persists in unfair practices.
- Use the Utah Insurance Department as a resource for complaints and consumer guides.