Texas has the second highest rate of auto insurance claim denials in the country

Texas has 2nd highest rate of auto insurance claim denials in the U.S.

A recent report found Texas has the second-highest rate of auto claim denials in the country.

Houston - Auto insurance claim denials are a growing problem for drivers.  It can mean having to pay expensive repair bills or going without a car.

By the numbers:

A recent report found Texas has the second-highest rate of auto claim denials in the country. The Florida law firm Anidjar & Levine reports that nationwide, 5% to 10% of auto insurance claims are denied at some stage. They report that about 4,200 Texans file complaints about denials with the Department of Insurance each year.

Local woman's insurance claim

Local perspective:

Driver Shelby Ramirez says her car has been undriveable, sitting at the service center since June 12. 

"That day it was storming, and I had to go to work," she explained.

Weather data shows severe thunderstorm warnings were issued for Galveston County that day.  Ramirez was on West Fairmont Parkway at Driftwood in La Porte when she says lightning hit the street by her car.

"It came down right there and there was a loud pop.  The car just died," she said.

Ramirez says she called La Porte police to protect her and her vehicle while she waited for a tow truck.  A police report shows they responded.  And Ramirez says the Sterling McCall service center in Clear Lake sent her this diagnosis: 

"... while charging the battery, we diagnosed the ‘main controller’ and noticed a distinct electrical smell and significant amount of heat coming from the front controller.  ... My professional opinion is that when the lightning struck next to this vehicle, it had transferred through the driver wheel which was wet at the time."

But Ramirez says her insurer, Liberty Mutual Insurance, denied her claim, writing:

"After inspection, it has been confirmed that the vehicle was not struck by lightning. Your coverage excludes damage ... due ... to wear and tear, ... mechanical or electrical breakdown or failure ... Because your damage was caused by one of these perils, you have no coverage for the claim."

"They’re supposed to be protecting me, is what I thought, but they’re protecting themselves," Ramirez reacted.

We contacted Liberty Mutual, which responded, "We do not publicly comment on the details of our customers’ claims; however, I have shared Ms. Ramirez’s concerns with our claims team, and someone will reach out to her to discuss."

"The person who reached out to you is one of many. I’ve seen thousands of these. This happens every day," said Eric Dick, an attorney who specializes in insurance cases.

What to do if your claim is denied

What you can do:

Experts say drivers can take steps to try to reverse an insurance denial.

When an auto insurance claim is denied, the insurer must provide the reason.  Experts say it's a good idea to follow up.  They may simply need more information about what happened.

You can also gather more evidence, and send them a letter of appeal.

Drivers can also file a complaint with the state Department of Insurance, which can help mediae.  

But drivers can also hire an attorney, and the earlier in the process, the better.  

"They have to prove their exclusions whenever you sue them, meaning you only have to prove a direct physical loss," explained Dick.

Meantime, Ramirez says the service center lent her a car, but that time has run out.   

"My daughter, she lives in Oklahoma, and her baby’s due next week. I don’t have anything to drive there to be with her," she said.

Ramirez says she's filed a complaint with the Texas Department of Insurance. 

Liberty Mutual told us they would contact her to discuss her claim further, but Ramirez says she hasn't heard from them yet.