Auto Insurance Claims: denial of claim for stolen vehicle-fraud, california dept of insurance, only viable option

Question
Last week, after 4 months of the claim process, my insurance carrier, Allied, denied my claim for my stolen vehicle, due to fraud.  They have yet to furnish in writing the reasons for the denial.  Verbally they said there were inconsistencies in my responses given.  The vehicle was in fact stolen and I had nothing to do with it, and now am wondering how to react.  I am going to file a complaint with the California Dept of Insurance, and am guessing i need to obtain an attorney.  Is hiring an attorney to sue my own insurance company my only viable option?  I just changed jobs and do not have money to pay an attorney to represent me. Obviously contingency would work for me; I am unsure as to how to proceed?  suggestions?
thanks much, paul

Answer
Hi Paul,

You should wait until you receive the formal written claim denial letter. Then file the complaint with the insurance department. As far as I know the insurance company can only deny the claim on the basis of fraud if they have enough evidence to refer your case to the state attorney for prosecution of same. If they do not have the evidence to prosecute you for insurance fraud they have to pay the claim. You may want to speak to an attorney just in case.

I hope this helps
Richard Hixenbaugh