Vehicle Write-off or Repair: 5-Step Strategy for Dealing with Insurers

Dealing With Insurance Claims

Just a few months ago, the owner of a popular downtown bar in Toronto came to us because his vehicle was severely vandalized, to the point that his vehicle was written off. He contacted his insurer immediately after the loss in order to report the damage that his vehicle sustained and to begin the claims process. His insurer made him an offer to settle the claim but the offer was significantly deficient. When the bar owner attended the office of his insurer to dispute the valuation of his vehicle, the insurer withdrew the offer altogether and denied the claim altogether. They simply told him that “the claim was being investigated.” Shocked and not knowing where to turn, the bar owner contacted us.

We met with the bar owner and explained the process for resolving his claim.

Our 5-step process for resolving the claim:

1. We do what the insurer ought to have done in the first place. We listen to you and take down all the relevant information.
2. We prepare a “demand letter” to the insurer. We lay out all the facts and advise the insurer of YOUR legal rights. We then give the insurer 7-10 business days to answer our demand for payment of the claim.
3. We gauge the response from the insurer and discuss it with you. The insurer will respond in one of three ways:
   • Agree to pay the claim; or
   • Engage in negotiations with the view of resolving the claim; or
   • Maintain its denial.
4. If the insurer maintains its denial, we will then discuss with you the option of starting a legal claim (lawsuit). We will explain all of the steps involved, costs, and the expected outcome. You have control over each step of the process.
5. The last step is a lawsuit. Once we sue the insurer, it has no choice but to defend. Most lawsuits end up resolving without a trial. The reason is simple. It is expensive for everyone (and risky) to go to trial. However, there are many opportunities throughout the lawsuit to resolve the claim.

In the case of the bar owner, the insurer’s response to our demand letter was to agree to pay the claim. It cost him very little to resolve the matter and it demonstrated what we have been saying all along: Insurers try to avoid lawsuits. It’s too expensive for them. Once they are faced with a legal team with experience in insurance law, they evaluate their positions very carefully before issuing or maintaining a denial.

If you or a loved one are dealing with an insurance company that is denying a claim, with seemingly no merit, contact a lawyer with experience in insurance law immediately. All cases are unique and deserve special consideration and care. Just remember, a claim can only be started up to one year after the loss occurs, so it is very important to get a good lawyer on your side immediately.