Can an Insurance Company Deny a Claim Due to “Other Insurance” Coverage?

Question from Rocgin, Can an Insurance Company Deny a Claim Due to “Other Insurance” Coverage?

Answer from AI:

Understanding “Other Insurance” Clauses

Insurance policies often contain an “other insurance” clause. This clause is designed to prevent double recovery when more than one insurance policy covers the same loss. In this case, the previous insurance company may be invoking this clause because there was another active policy at the time of the accident. However, the interpretation and application of “other insurance” clauses can vary depending on the specific language of the policy and the laws of your state.

Challenging the Insurance Company’s Decision

If you believe the insurance company is incorrectly denying your claim, there are several steps you can take:

1. Review the Policy: Carefully read the policy language and the “other insurance” clause. If the language is unclear or ambiguous, it may be interpreted in your favor.
2. Consult with a Lawyer: An attorney specializing in insurance law can provide advice tailored to your situation. They can help you understand the policy language, the relevant laws, and your options for challenging the insurance company’s decision.
3. File a Complaint: If you believe the insurance company is acting in bad faith, you can file a complaint with your state’s insurance regulator. In the US, this is typically the Department of Insurance or a similar agency.
4. Consider Legal Action: If the insurance company continues to deny your claim, you may need to take legal action. This could involve filing a lawsuit against the insurance company.

Understanding the “Totaled” Determination

When an insurance company declares a car “totaled,” it means they believe the cost to repair the car exceeds its current value. This determination is based on the insurance company’s assessment of the damage and the car’s value. If you disagree with this assessment, you can challenge it. You may need to provide evidence, such as estimates from repair shops or appraisals of the car’s value.

Addressing the Charged Premium

If the insurance company charged a premium for a period after they denied your claim, this could potentially be a violation of your state’s insurance laws or regulations. You may want to consult with a lawyer or contact your state’s insurance regulator to discuss this issue.

Remember, this information is general in nature and may not apply to your specific situation. It’s always a good idea to consult with a legal professional for personalized advice. You can find more information about insurance laws and regulations on the National Association of Insurance Commissioners website.