Auto and other insurance companies routinely deny claims submitted to them by their insured. Even when the claim is completely legitimate, there is still a chance that it will be denied, this is known as insurance bad faith, and is punishable in the State of California. This can often be a very stressful situation for the insured. Not only is the underlying loss still pending, but most insured do not know what to do next.

Perhaps the most important thing to know is that you, the insured, have options. Some insurance companies have a method of appealing a denied claim. Determine what that method is and determine all the applicable deadlines. Calendar those deadlines for yourself. When an auto insurer denies a claim, it is possible to submit an appeal to the state Insurance Commissioner.

Review your policy and the stated reason for the denial. You may not agree with the stated reason, or may believe that the stated reason is erroneous.

If you have a good understanding of what to do in the appeals process, gather your documents and submit your appeal in a timely fashion. Keep copies of all documents that you submit, including the denial letter and all other documents regarding the underlying loss. A chronology of events is often helpful in organizing your records regarding the claim. Make sure to send confirming letters or emails regarding conversations that you may have with any representative of that insurance company.

In almost all cases, it is a good idea to at least consult with an attorney. Have the attorney review your documents and your records of the appeal. Have the attorney look at the denial to evaluate the denial to see whether the denial was made in good faith. If the denial was made in bad faith, you may have an action against your insurance company.

Remember, organize and seek help earlier, rather than later. You will be glad that you did.