Latest news with #JanetRuiz
Yahoo
09-07-2025
- Automotive
- Yahoo
How and when to file a complaint against your car insurance company
You're upset that your auto insurance company won't pay to repair your car after an accident. Perhaps you feel like they unjustly denied your renewal or spiked your premium when you've been a good driver all year. If you tried to explain your position to them without results, consider filing a complaint with the Department of Insurance in your state. 'They will investigate your complaint and work with the insurance company to resolve it,' said Janet Ruiz, spokesperson for the Insurance Information Institute in San Diego. According to data from the National Association of Insurance Commissioners (NAIC), tens of thousands of complaints are overturned each year. This embedded content is not available in your region. Learn more: How does car insurance work? The basics explained. It might be hard to know when it's worth going through the time and effort to file an insurance complaint. Here are the most common reasons consumers file complaints against their insurers: It's been weeks or months since you've filed a claim, but there's been no word whatsoever from the insurance company about a resolution You felt disrespected or mistreated by the claims adjuster The adjuster or your insurance agent mishandled your claim Your claim has been denied without an explanation Your settlement offer seems unfairly low, though they won't tell you why The insurance company refuses to issue you a policy or renew your existing policy without a valid reason You're quoted a higher-than-normal price on an auto policy that is not commensurate with your driving record, age, or other determining factors Learn more: How to switch car insurance companies First, find the link to your state insurance department's complaint process on the NAIC website — the search tool is halfway down the page. Most states will have online or written complaint forms that you can fill out, asking you to complete the following information: Your name, address, and telephone number The name of your insurer What type of policy and your policy number Your insurance agent's contact information, if applicable The nature of your complaint Any documents, photos, and correspondence with the insurer or your agent, including emails and texts that support your complaint The type of resolution you're looking for While the complaint process is similar across states, there can be marked differences. Below are four states' procedures to serve as examples. The California Department of Insurance provides an online form to file a complaint and downloadable forms that you can mail to the state. However, the department recommends that consumers file a complaint online, as mailing paper forms may delay the process. The Golden State's complaint form also informs consumers that if they have filed a bad faith insurance claim against their insurer regarding their dispute, the state will defer its investigation until the lawsuit has been decided in court or settled. However, consumers should still lodge a complaint with the state while the lawsuit is ongoing so the state can have a record of it. After the lawsuit is concluded, the consumer and their bad-faith attorney can submit evidence of insurance law violations. Learn more: Car insurance requirements in California — and ways to save money In the Garden State, formal complaints against insurance companies must be submitted in writing — in dark ink and with no highlighted sections so all information is legible. In addition to the standard information mentioned above, the New Jersey Department of Banking and Insurance also asks consumers to include a copy of their auto insurance ID card, a copy of the policy declarations page, and, if applicable, notices of either a nonrenewal, premium increase, or claim denial. Learn more: Car insurance rates are rising in New Jersey. Here's how to save. The Texas Department of Insurance offers thorough step-by-step guides walking consumers through the process of filing a complaint, with optional guides in Spanish. For help with an auto insurance complaint, the Lone Star State recommends consumers follow these steps: Step 1: First, talk to your insurance company to resolve the issue. If you disagree with their decision, let them know why. Step 2: Ask your insurer for an appraisal. It's a three-appraiser process; The insurance company will provide its own appraiser; you hire and pay for your own appraiser; and you pay half of the cost for a third appraiser, chosen by the other two appraisers, to serve as the 'umpire.' Step 3: File a complaint with the state if you disagree with the appraisal results or if you believe your insurer violated any laws. The department details what it can do to resolve issues and what it can't do, like overrule the decision regarding who was at fault in an accident. Step 4: The department will contact the insurance company, which has 15 days to respond to the complaint, with an option to extend that time for another 10 days. Then the department will let you know how the insurer's response impacts your complaint. Step 5: If you are dissatisfied with the results of your complaint, the department provides resources to obtain legal help from a bad-faith attorney. Learn more: Car insurance costs are big in Texas. Here's how to get the cheapest rates. In Colorado, consumers are urged to first contact the Colorado Division of Insurance to explain their situation so a complaint analyst can determine whether the agency can help them and what that assistance would look like — including helping them file a complaint, said Bobbie Baca, the division's director of consumer services for property, casualty, and title insurance. 'While complaints are often warranted, it often happens that a complaint results from a misunderstanding of the complicated world of insurance,' Baca said. 'Complaint resolutions may include claim settlements, facilitating communications, and reversal of non-renewals or cancellations.' Indeed, a total of $4,995,340 last year was recovered for Colorado consumers through the division's investigations into their auto insurance complaints, according to the FY 2023-24 Colorado DOI Annual Complaint & Recoveries Report. It's best to file a complaint with your state's insurance department rather than with the Better Business Bureau or on other sites. The state departments are officially designated to process complaints and are the only ones that can take enforcement action if necessary. Below are five tips to help you file a complaint against your car insurance company, from how to go about it alone to when it's time to seek legal counsel. Tip 1: Start with your insurance agent. Try to resolve the issue first with your insurer or agent, and if they are not willing or able, ask for their supervisor's contact information. 'If you are still not satisfied, let them know that you will file a complaint with the Department of Insurance,' Ruiz said. 'They may be able to find a resolution without going through the complaint process.' Tip 2: Know when to skip the phone call. If the concern is directly related to the behavior of your agent, it may be better to skip calling your state's insurance department and file a complaint first, Baca advised. Tip 3: Compile supporting financial evidence. When including documents to support your complaint, be sure to have estimates from body repair shops and other figures disputing the insurer's decision. Tip 4: Locate an arbitrator. See if the terms of your policy dictate that you first go through either an arbitration or appraisal process with the insurance company. You can find an arbitrator from the American Arbitration Association. Tip 5: Consider a bad-faith attorney. As a final option, you may want to hire a bad-faith attorney, though state insurance departments typically offer their services for free, Baca said. 'We can answer a lot of questions, provide education, point people in the right direction, and if it is something we can investigate, we can help them file a formal complaint,' she said. 'If the division is unable to assist the consumer, that is when they may want to consider talking with an attorney.' Remember, once you hire an attorney, you will no longer be able to communicate directly with your insurance company, Ruiz advised. Tim Manni edited this article.
San Francisco Chronicle
02-06-2025
- Business
- San Francisco Chronicle
Here are 17 activities State Farm considers too risky to insure under one California policy
What do corn mazes, mushroom farms and professional athletes have in common? They all have the dubious honor of being considered too risky to insure under a State Farm policy that offers extra liability coverage, per a filing earlier this year. The underwriting guidelines apply to the embattled insurer's California Personal Liability Umbrella Program, a product for policyholders who want protection beyond what's included in a basic personal liability policy. It provides a minimum of $1 million for covered claims, which could include liabilities like steep attorney's fees, damages from a lawsuit, or medical bills for someone the policyholder injured. State Farm requested a 39% rate hike for the product earlier this year, citing the need to offset rising claim costs stemming from 'more accidents, escalating medical bills and larger legal settlements,' a company spokesperson said at the time. State regulators have yet to decide whether to approve the hike. That request is separate from State Farm's home insurance rate increases; the company received approval from state regulators in May to temporarily increase rates by an average of 17% and is still pursuing a permanent 30% rate hike, which would add an additional 11%. State Farm stopped accepting new applications for the umbrella policy in California two years ago, according to the filing. But for customers considering renewing their coverage, State Farm's underwriting guidelines include a laundry list of disqualifying activities or characteristics. Some might not raise any eyebrows — applicants with prior fraud convictions are barred, for example — but other restrictions are more esoteric, like farms that offer Pick-Your-Own produce. Here's a selection of the sometimes eclectic list of traits and activities State Farm considers 'unacceptable': Highly specific underwriting guidelines for personal liability umbrella policies is not a new phenomenon, though insurers sometimes add new ineligibilities if they deem activities to have become riskier over time, said Janet Ruiz, a spokesperson for the Insurance Information Institute. She declined to comment specifically on State Farm's guidelines. Premiums for umbrella policies have increased in recent years in part due to rising medical costs, more lawsuits and occasional 'astronomical verdicts' in some legal cases, Ruiz said. She still recommends umbrella policies, especially for people with significant assets, but she is also hoping for tort reform to reign in rising legal payouts. 'It's an important balance,' Ruiz said. 'People should get paid for the damages, but when they get excessive amounts, we all pay for it, in the cost but also some of the exclusions.'
Axios
16-04-2025
- Business
- Axios
State Farm's "Titanic"-like financial crisis, explained
State Farm, California's largest home insurer, is facing an unprecedented financial crisis following the destructive blazes in Los Angeles, which cost the company $7.6 billion in losses. Why it matters: Though the state's insurance commissioner has approved major reforms to expand coverage options and account for the rising cost of wildfires, the rollout has been slow as the state reviews how to implement the new regulations. How it works: The reforms allow companies like State Farm to use forward-looking models instead of historical data and pass down reinsurance costs to customers. The new catastrophe models must go through an approval process before insurers can base rates on them. State of play: State Farm, which has already paid $1.75 billion on 9,500 claims from the fires as of March, is seeking a 17% emergency rate increase for homeowners — down from 22%, its previous request. The insurer also wants to raise premiums by 15% for renters and 38% for rental dwellings. It's asking for $400 million in funding from its parent company if the rate hike is approved. Threat level: The state's Department of Insurance has supported the company's request — pending further evidence — even equating State Farm to the Titanic in a recent hearing. What they're saying: The insurer's strained financial outlook poses no surprise to many industry experts, who have said that California has long needed to make reforms to its outdated regulations, said Janet Ruiz, a spokesperson at the Insurance Information Institute. If State Farm doesn't adjust rates, the company risks being downgraded by rating bureaus, affecting its ability to meet mortgage requirements, Ruiz said. Friction point: Consumer Watchdog, a consumer advocacy group, has been fighting to stop the rate increase, which executive director Carmen Balber said could "unfairly burden consumers without resolving the insurer's financial issues." The big picture: Climate change has made California more vulnerable to wildfires, a risk that has led many insurers, including State Farm, to drop thousands of policies or pull out of the market altogether. The FAIR Plan, the state's insurer of last resort, is absorbing that demand — offering some protection for homeowners at the expense of its own financial condition. The LA fires further strained the state's volatile insurance market as one of the costliest wildfire events in U.S. history, with estimated damages reaching up to $131 billion. Between the lines: Homeowners are also shouldering the costs after the FAIR plan requested a $1 billion bailout to keep it solvent. It will be collecting that money from private insurance companies that are allowed to pass on half of that cost to its policyholders. It's yet another toll on the consumer, Balber said, adding that it sets a bad precedent if companies can continue to pass down assessment costs in the future. What we're watching: The advocacy group is suing to prevent the consumer surcharge — a move that has triggered staunch opposition from the industry. Denni Ritter, a spokesperson at the American Property Casualty Association, called the lawsuit "a reckless and self-serving stunt that threatens to make California's insurance crisis even worse." What's next: The judge in the State Farm case is expected to make a decision in the coming weeks on the premium increase before going to the insurance commissioner for final approval.
