Auto Insurance Claims: Special Invesigations, special investigations unit, certified mail

Question
QUESTION: My car was recently vandalized by someone taking a knife and keying the entire car, lights, and windows.  Once it was at the shop the insurance company started mentioning that it would be subject to betterment.  The car and paint were in good condition to begin with.  Then they called and said it was being denined and sent to the special investigations unit.  About three years ago I had a homeowners claim for theft and it wnet to special investiagtions because I was living in another state at the time.  I finally dropped the claim due to family commitments that I had where we were living and I couldn't keep traveling back and forth trying to resolve this.  I have been with this company 8 years and have only had one auto claim where someone else was at fault.  What should I do?

ANSWER: If you had coverage at the time of loss, you are owed compensation. If they are denying your claim, you can file a complaint with your state's insurance department, which will have an online facility for submitting one. While insurance departments are notorious for their inaction with respect to supporting consumers, it is your first recourse at this point. Also, you may want to seek the aid of an attorney with a specialty in policyholders' issues, bad faith, etc.

Make all your communications with the insurance company in writing and send them by certified mail or fax for expediency. Make them send you their denial of the claim in writing and state their reasons for the denying your claim.

---------- FOLLOW-UP ----------

QUESTION: We are meeting with the special investigator tomorrow.  Is there anything we should know going into this meeting?  Is it common for the insurance company to send this type of claim to special investigations?  Also, is this betterment clause something you are seeing more of?  We had never heard of it before this.

Answer
Just tell the investigator the truth. Betterment is something that insurance companies will deduct from the claim payout in cases in which the replacement of a wear item like a tire will put you in a better position than you were prior to the loss. Batteries, brake pads and tires are often subject to betterment. I would object to any betterment deductions taken on paint, glass, headlamps or an item that is designed to last the lifetime of the car. If they insist on the betterment deduction, make them show that your entire car is now more valuable than it was prior to the damage.