• Auto insurance laws can vary widely between states.car image by Arman Zhenikeyev from Fotolia.com
  
  Auto insurance claims laws are written and enforced by each individual state in the U.S. Laws can vary widely between states. States are generally categorized into two major groups regarding the types of claims laws which apply: tort states and no-fault states. For specific laws that pertain to your location visit your state's department or bureau of information website.
  
  

Tort States

• Tort states are ones in which insurance companies settle claims according to the traditional fault-based method of assigning liability to individual parties in an accident. In a tort state, the party found to be responsible for the accident is then liable for all the damages arising from that accident, both bodily injury and property damage costs. If more than one party is found responsible, each will be liable for the corresponding percentage of total costs.
  
  

No-Fault States

• No-fault states mandate that medical costs arising from a claim be settled by each party's individual auto insurance company up to the policy limits chosen by the customer. Lawsuits between drivers for medical costs are limited or prohibited by the no-fault insurance option. Some states allow for lawsuits only after a certain damage threshold has been met. The threshold amount depends on the state you are in.
  
  

Arbitration

• Most auto insurance companies have an arbitration or appraisal clause in their policies which allows you to seek a disinterested third party to help reach a settlement agreement between you and your company during a claim. Typically you will have to pay the cost of the arbitration or appraisal. The decisions reached by this third party are binding to both you and the insurance company.
  
  

Policy Language

• Most states require that an insurance company's claims process be outlined in its policies. A review of your auto policy will likely tell you what to expect when you file a claim. Policies are reviewed by the state's department or bureau of insurance before they are available for sale and purchase, so the claims process in your policy will comply with state law.
  
  

Department of Insurance Complaints

• The department or bureau of insurance in each state receives and records consumer complaints. If you are dissatisfied with a claim situation or believe you are being treated unfairly or in a manner which violates the law, you can file a complaint with the regulatory agency in your state. It will investigate your situation and take corrective action against the insurance company if required.