What happens if I disagree with State Farm’s decision on my auto insurance claim?
What happens if you disagree with State Farm’s decision on your auto insurance claim depends on why the company isn’t paying you. Getting to the bottom of State Farm’s decision on your claim determines what happens next. Learn more about the State Farm claims process and how to dispute State Farm's decision on a claim.
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Insurance and Finance Writer
Merriya Valleri is a skilled insurance writer with over a decade of professional writing experience. Merriya has a strong desire to make understanding insurance an easy task while providing readers with accurate and up-to-date information. Merriya has written articles focusing on health, life, and auto insurance. She enjoys working in the insurance field, and is constantly learning in order to ...
Merriya Valleri
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Chris Abrams
Updated March 2025
- If State Farm denies or underpays your claim, you should call a representative and check your policy and coverage limitations
- State Farm may deny or underpay your claim if the company suspects fraud or misrepresentation, but human error and insufficient evidence are more likely
- If you remain confident that the denial or underpayment is unfair, you can file an appeal
Learning that State Farm will underpay or not compensate you at all can be puzzling and frustrating at the same time. But what happens if you disagree with State Farm’s decision on your auto insurance claim can depend on if you take action or accept the potentially unfair treatment.
While even the best affordable auto insurance companies can make decisions you disagree with, you still have the right to contest the results and take control of the situation. (For more information, read our “What happens if I disagree with the insurance company’s decision on my claim?“).
When You Disagree With State Farm’s Decision on Your Auto Insurance Claim
When you check the status of your auto insurance claim and notice State Farm will deny it, you should first remain calm and review your policy details.
It may be a case of a simple misunderstanding on your part. For example, you may need a different type of auto insurance to cover vehicle damage from a tree or foreign object. In this case, you need comprehensive coverage, but you may mistakenly think minimum state-required coverage is enough.
To avoid this, learn how to know if you chose the right auto insurance coverage. You may also be unaware of your coverage limitations. The terms of your policy should highlight overall limits or maximum coverage amounts for specific types of claims.
Read more:
- How do I file an auto insurance claim with State Farm?
- What information do I need to file an auto insurance claim with State Farm?
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Contact State Farm for More Information
If you comb through your policy and believe you should receive compensation, your next step is to call State Farm at 1-800 732-5246. Tell the representative or adjuster you don’t understand the denial or underpayment.
They may be able to clear up the dispute quickly by letting you know your evidence and documentation were lacking. Alternatively, they may notice a mistake on State Farm’s end that they can resolve.
State Farm may have denied your claim for several other reasons, including suspected misrepresentation. That means the company believes you were dishonest about your driving record and personal details upon acquiring coverage.
State Farm may also determine that you were negligent in causing damages or loss, or it may disagree with you about how extensive the damage is, leading to an underpayment. It may also be that you took too long to file your claim or didn’t pay your monthly premiums on time.
If speaking to State Farm still doesn’t provide clarity, look for mail from State Farm regarding the claim denial. It should include either a claim appeal form or information on how to submit a claim appeal letter.
Check out our State Farm auto insurance review to learn more about the company.
How to File an Appeal When You Disagree With State Farm’s Decision on Your Auto Insurance Claim
Filing an appeal is essentially summarizing why you don’t agree with State Farm’s decision. Contact State Farm to inquire about the best way to file an appeal, but you can usually do so by sending a letter.
In your appeal, explain the reasons why you don’t agree with State Farm. Emphasize your supporting evidence, such as police reports, witness statements, and other details, and include any other relevant information you may have missed when you filed the initial claim.
After you submit your appeal, call State Farm to confirm the company received it. You can still fight for compensation if State Farm disagrees with your appeal.
When to Seek Legal Guidance if You Disagree With State Farm
Unfortunately, sometimes insurance companies can be difficult to work with. If you believe your insurance company is treating you unfairly and owes you money, you can consult a lawyer specializing in insurance law.
Depending on the circumstances and applicable laws, they can guide you on further legal options, such as arbitration or filing a lawsuit.
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Disagreeing With State Farm on Your Auto Insurance Claim: The Takeaway
Giving State Farm the benefit of the doubt can go a long way when you disagree about your auto insurance claim results. Discovering a simple misunderstanding or human error is often the key to resolution. Then, if all else fails, you can file an appeal and speak to a lawyer to seek compensation.
Frequently Asked Questions
What happens if I don’t reply to an insurance claim?
If you are at fault, the other driver’s insurance company will seek compensation from your insurance company, regardless of whether you ignore the situation. Therefore, cooperating with your insurance company, the other driver, and their insurance company is always a good idea.
What do I do if my car insurance company does not respond to my claim?
How long it takes to for an auto insurance company to pay out a claim can vary depending on the complexity of the claim. It’s best to exercise patience and communicate with your adjuster as much as possible. Your insurance company will never blatantly ignore your claim.
What auto insurance companies have the best customer service?
Some affordable auto insurance companies with great customer service include Erie Insurance, USAA, and Auto-Owners.
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