Do you know why your insurance company can deny your claim?
In some states like Michigan, your insurance company has huge leeway to deny your claim on a stolen car. Statistically, this seems to happen more frequently when the car owner is nonwhite, a troubling trend. And if an insurance company does this to you, you probably can’t do anything about it.
That’s because a state like Michigan only allows people to sue for the value of the claim. So if the insurance company owes you $20,000 for your stolen car, even if you win, it only has to pay you that $20,000. Lawyer fees? On you. Damages caused by the insurance company denying your claim? Not happening.
And since insurance companies know this, they’re much more likely to deny claims.