What are some realistic options for insurance claim denial?

Question

My friends leased car was stolen, the city called to tell him it was recovered but they had destroyed it already. Now the insurance company refuses to pay the claim and the dealer is after him for the money. Him suing the insurance company is a joke as they have unending finances. Is subrogation an option for the dealer to sue the insurance company or any other option available?

Answer 1

The previous poster is correct.  

Why is the insurance company not paying???? they have to give you a reason in writing in most states if they formally deny the claim.

Also have  big issues with why the city "destroyed" the car.  If the vehicle was stolen, then it would alert in the NICB.  If the vehilce had not been settled the city had no right to destroy the car.

You need to fill in the blanks.  1 and 1 is not adding up to 2 here.

Answer 2

What exactly are you suing the insurance company FOR?  

They gave a reason, why they didn't pay the claim.  You can file a complaint in writing, with the state insurance commissioner, to see if they can overturn the denial reason.  Insurance is contract - so the WHY they won't pay, is crucial.  

The city destroying the car, is not relevant.

Yes, he still owes the owner of the car, for the money.  Subrogation, means "transfer your right to recovery to someone else".  Sure he can transfer the right to collect from the insurance company, but LIKELY, the insurance company doesn't OWE him any money for this, depending on why they cancelled.  

You're not going to get a good answer here, because the most crucial piece of information is missing - WHY the insurance company denied the claim.