What to do if an auto insurer will not honor a claim?

I had filed a claim file with my auto insurer and the shop where I took the vehicle was given the OK to fix my vehicle. After my vehicle got fixed, I attempted to call my insurance company many times to ask questions. However, I was always transferred to a different person with no straight answers. After a month. I needed my vehicle for work so I called again and was told they would not pay for the repairs. I was told I lied about the accident. Now I am out $6510 that I don’t have and had to borrow to get the truck out. The shop said that they will stand by me and help in anyway and have never heard of an insurer doing this. Do have a chance of getting my money back?

Asked on August 21, 2013 under Accident Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Insurance policies are contracts. That means that the insurer is obligated to 1) provide whatever payment or coverage it agreed to provide in the policy; and 2) deal with you, as the other party to the contract, in good faith and fairly/honestly (not doing so violates the "implied covenant of good faith and fair dealing," or the obligation to deal fairly with the other party, which the law addes to all contracts). If you believe the insurer is violating its contractual obligations, your recourse is to sue them for breach of contract, to force them to honor their contractual obligations.

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