Guide to Arizona Insurance Complaints (and Other Options)

Are you dealing with a dispute against an insurance company and can’t seem to reach a resolution? Does the insurance company refuse to pay out a covered claim with your auto, home, health and/or renter’s insurance?  If you live in Arizona, here are 4 steps you can take against an insurance company to get the justice you deserve:

1. Send an official demand letter directly to the insurance company.

2. File a BBB complaint against the insurance company. 

3. File a government complaint against the insurance company. 

4. Sue the Insurance Company in small claims court. 
   

Did you know we have a free tool powered by AI that helps you create a demand letter to an insurance company? This is one of the first steps many consumers take. Check out our demand letter tool.

These are the most common types of complaints against insurance companies that we see: 

• Your auto insurance company decides to only reimburse you 50% of what you paid a mechanic to fix your car even though your auto policy includes full coverage.

• Your home insurance company fails to pay for a water damage claim even though water damage included in your insurance policy. 

• Your health insurance company isn’t honoring the terms of the health coverage you purchased. 

• Your pet insurance company won’t cover a covered claim that isn’t related to a pre-existing condition. Learn more about filing a complaint against a pet insurance company. 

• Your home warranty company won’t reimburse the company that you hired to fix an issue related to a covered claim in your contract.  Learn more about filing a complaint against a home warranty company. 

Sending a demand letter to an insurance company is a very important first step to seek the justice you deserve.  In your demand letter you will outline a set of requests you would like your insurance company to take in order to settle the dispute. 

For example, if the insurance company ignores your requests for reimbursement for a claim falling within the purchased insurance policy, you can make this request in the letter. A demand letter also serves as a notice to the insurance company that if they don’t meet your demands, you intend to sue them in small claims court. 

Here are some other reasons to send a demand letter: 

• A demand letter may lead to a settlement without further legal action (and legal costs).

• A demand letter outlines what happened and starts helping you prepare for filing a lawsuit or a complaint with the Arizona Department of Insurance. 

• At the hearing, you can show your demand letter to the judge as evidence of your attempts to resolve your insurance with the insurance company and their failed attempts at doing what was right without you having to sue them. 

Did you know we have a free tool powered by AI that helps you create a demand letter to an insurance company? Check out our demand letter tool.

Here is a video on how our demand letter tool works:

The Better Business Bureau (“BBB”) acts as a consumer advocate by accepting and forwarding complaints against businesses like insurance companies. 

While the BBB is not a government agency and can’t force the business to resolve your complaint, insurance companies take BBB reviews seriously for the following reasons: 

• If the company is accredited with the BBB and doesn't respond to a BBB complaint, the business’s accreditation may be revoked, and the complaint becomes part of their BBB profile.

• If the company is not accredited with the BBB, the complaint will become part of their BBB profile.

• BBB reviews provide other consumers with confidence when engaging with a company. Companies do not want negative BBB complaints.

• Make sure to check the insurance company’s profile before submitting a BBB complaint. If the company has a history of not responding to complaints, you may be wasting your time filing a complaint with the BBB. 

Learn more in our step-by-step guide to filing a complaint against an insurance company with the BBB. 

If you have a problem with an insurance company, you may want to file a complaint with an Arizona government agency that regulates insurance companies. While the Federal Insurance Office oversees insurance companies at a federal level, the best place to file a complaint is at the state level.

Arizona Department of Insurance and Financial Institutions

If you are an Arizona (or have an insurance policy in Arizona), all insurance complaints with the government are handled by the Arizona Department of Insurance and Financial Institutions (DIFI). DIFI is  responsible for regulating the insurance industry and investigating complaints against insurance companies. 

If you are outside of Arizona, review our 50-State Guide to Insurance Complaints instead. 

The Arizona Department of Insurance and Financial Institutions accepts complaints using their online complaint form. 

If you have any questions you may contact DIFI by: 

• Email: [email protected]

• Phone: 602-364-2499

Check out some threads on Reddit about consumers who have filed complaints against insurance companies with the Arizona DIFI.

Important Steps When Filing a Complaint with the Arizona DIFI

Another way to deal with a complaint against an insurance company is to sue the insurance company in an Arizona small claims court. If you have not filed your small claims lawsuit, review our 50-state guide to small claims court. In small claims court, a judge decides whether you or the insurance company is right.

When preparing for small claims court, you will want to create a trial presentation. A trial presentation is a document you will take to court with you to help you present your strongest case before a Judge.  This presentation will be a visual designed to present your evidence, argument, and analysis in a way that the Judge will understand. If you need help preparing your trial presentation for the court hearing refer to our how to create a presentation for your small claims hearing.