What happens if I disagree with State Farm’s decision on my auto insurance claim?

Learning that State Farm will underpay or not compensate you at all can be puzzling and frustrating at the same time. But what happens if you disagree with State Farm’s decision on your auto insurance claim can depend on if you take action or accept the potentially unfair treatment.

While even the best affordable auto insurance companies can make decisions you disagree with, you still have the right to contest the results and take control of the situation. (For more information, read our “What happens if I disagree with the insurance company’s decision on my claim?“).

When You Disagree With State Farm’s Decision on Your Auto Insurance Claim

When you check the status of your auto insurance claim and notice State Farm will deny it, you should first remain calm and review your policy details.

It may be a case of a simple misunderstanding on your part. For example, you may need a different type of auto insurance to cover vehicle damage from a tree or foreign object. In this case, you need comprehensive coverage, but you may mistakenly think minimum state-required coverage is enough.

To avoid this, learn how to know if you chose the right auto insurance coverage. You may also be unaware of your coverage limitations. The terms of your policy should highlight overall limits or maximum coverage amounts for specific types of claims.

Read more:

• How do I file an auto insurance claim with State Farm?
• What information do I need to file an auto insurance claim with State Farm?

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Contact State Farm for More Information

If you comb through your policy and believe you should receive compensation, your next step is to call State Farm at 1-800 732-5246. Tell the representative or adjuster you don’t understand the denial or underpayment.

They may be able to clear up the dispute quickly by letting you know your evidence and documentation were lacking. Alternatively, they may notice a mistake on State Farm’s end that they can resolve.

State Farm may have denied your claim for several other reasons, including suspected misrepresentation. That means the company believes you were dishonest about your driving record and personal details upon acquiring coverage.

State Farm may also determine that you were negligent in causing damages or loss, or it may disagree with you about how extensive the damage is, leading to an underpayment. It may also be that you took too long to file your claim or didn’t pay your monthly premiums on time.

If speaking to State Farm still doesn’t provide clarity, look for mail from State Farm regarding the claim denial. It should include either a claim appeal form or information on how to submit a claim appeal letter.

Check out our State Farm auto insurance review to learn more about the company.

How to File an Appeal When You Disagree With State Farm’s Decision on Your Auto Insurance Claim

Filing an appeal is essentially summarizing why you don’t agree with State Farm’s decision. Contact State Farm to inquire about the best way to file an appeal, but you can usually do so by sending a letter.

In your appeal, explain the reasons why you don’t agree with State Farm. Emphasize your supporting evidence, such as police reports, witness statements, and other details, and include any other relevant information you may have missed when you filed the initial claim.

After you submit your appeal, call State Farm to confirm the company received it. You can still fight for compensation if State Farm disagrees with your appeal.

When to Seek Legal Guidance if You Disagree With State Farm

Unfortunately, sometimes insurance companies can be difficult to work with. If you believe your insurance company is treating you unfairly and owes you money, you can consult a lawyer specializing in insurance law.

Depending on the circumstances and applicable laws, they can guide you on further legal options, such as arbitration or filing a lawsuit.

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Disagreeing With State Farm on Your Auto Insurance Claim: The Takeaway

Giving State Farm the benefit of the doubt can go a long way when you disagree about your auto insurance claim results. Discovering a simple misunderstanding or human error is often the key to resolution. Then, if all else fails, you can file an appeal and speak to a lawyer to seek compensation.