Detailed Answer
After a collision, Wisconsin law requires your auto insurer to investigate and resolve your claim promptly and in good faith. If an insurer unreasonably delays, underpays, or denies your claim without a valid reason, you can take these steps to challenge their tactics.
1. Know the Insurer’s Legal Duties
Under Wis. Stat. § 632.24, an insurer must act in good faith when handling first-party claims. The Wisconsin Administrative Code Ins 6.11 lists unfair claims settlement practices such as:
- Failing to acknowledge and act promptly on communications regarding a claim.
- Unreasonably denying or delaying settlements.
- Offering substantially less than the amounts reasonably believed to be owed.
Read the code at Ins 6.11.
2. Document Every Interaction
Keep copies of all correspondence, emails, phone-call logs, repair estimates, medical bills, photos of damage, and the accident report. Documentation strengthens your position if you escalate the dispute.
3. Send a Formal Demand Letter
Within 30 days of your last insurer communication, mail a certified demand letter. State the facts, cite your policy provisions, demand full payment, and set a firm deadline (e.g., 10–14 days). Clear written demands often spur insurers to act.
4. File a Complaint with the Office of the Commissioner of Insurance (OCI)
If delays or denials continue, you can file an administrative complaint under Wis. Stat. § 601.41. OCI investigates unfair insurance practices and can order corrective action. Submit your complaint online at OCI Consumer Complaint.
5. Pursue Legal Remedies
If administrative steps fail, consider a civil lawsuit for breach of contract or bad faith. Under Wis. Stat. § 632.24 you may recover policy benefits plus interest and attorney fees if you prove the insurer acted without a reasonable basis.
Key Statutes & Rules:
- Wis. Stat. § 632.24 – Insurer’s duty of good faith
- Admin. Code Ins 6.11 – Unfair claims practices
- OCI Complaint Process (Wis. Stat. § 601.41)
Helpful Hints
- Create a detailed timeline of every call, email, and letter.
- Always follow up phone conversations with an email summarizing what was said.
- Request a clear, written explanation for any partial payment or denial.
- Review your policy’s deadlines for filing suit or appraisal clauses.
- Consider early consultation with an attorney if the insurer ignores your demands.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney about your specific situation.