Getting into a car accident can be a major headache, even if the damage is minor. Once you file a claim, you might wonder, “How long does an auto insurance company have to settle a claim?” The short answer is, usually around 30 days. However, it can vary depending on a few other factors.
- Insurance claims typically take about one month to resolve.
- The length of time that it takes to resolve a claim depends on the state and the type of claim.
- Typically, bodily injury claims take longer to settle than property damage claims.
- In some states, you can wait up to one year or longer to file a claim after a collision.
How long does an insurance claim take?
A car insurance claims process can be resolved in as little as a few weeks, or as long as a few months. The length of time that it takes to settle a claim depends on the insurer, the state and the type of claim.
Most states protect consumers by encouraging insurance companies to handle car accident claims promptly. Some states even require a specific settlement period, like 30 days. Here are some examples:
- California – Insurers have 40 days to accept or reject a claim and then 30 days to issue payment once a settlement is agreed upon.
- North Carolina – Insurers have 30 days to acknowledge a claim and then 10 days after settlement to pay the claim.
- Texas – Insurers have 30 days to accept or reject a claim and then five days to issue payment once a settlement is agreed upon.
However, the amount of time for the claims process usually depends on the specific claim. For instance, personal injury claims take longer to resolve than property damage claims.
Factors that may delay a claim process
Certain factors can delay the claim process. Here are some of the biggest ones you might run into:
- Severity of the injuries: If a driver is badly injured in a car accident, expect the settlement to take longer. The driver has to finish treatment in order to determine how much money they can get.
- Dispute over which driver was responsible: After an accident, it’s not always immediately clear who was responsible. If there is a dispute about each driver’s negligence, it’s going to take the insurance companies longer to settle the claim.
- Back-and-forth negotiations: In general, settlement negotiations can take a lot of time. There’s usually a good amount of back-and-forth between lawyers, victims, and the car insurance companies.
How to prevent delays when filing an insurance claim
Dealing with a delayed claim can be incredibly frustrating, especially if you’re the one waiting for compensation. Below are some ways that you can prevent a delay when filing a claim:
- Provide evidence upfront: After the accident, take lots of photos of the damage, write down when and where the accident took place, and a description of what happened. That way, the insurance company won’t have to track down this information in the future.
- Research the laws in your state: As mentioned, some states require insurance companies to settle claims within a certain time period. Know the laws in your state, and if the insurance company is taking too long, let them know or hire a lawyer to back you up.
- Be proactive: The truth is, settling claims can take time. If you feel like your insurer is dragging their feet, don’t be afraid to reach out proactively and get an update. Don’t wait for them to contact you.
If you find yourself waiting months for a claim to get resolved, there are a few things you can do to speed up the process. Here are some suggestions:
- Keep a log of every conversation you have with the insurer, including the date and next steps.
- Respond to requests and complete paperwork as soon as possible to keep things moving forward.
- Digitize copies of accident reports and damage evidence in case you need to share them around.
- Never lie to your insurance company — it will eventually come the light, and it will slow down the process significantly.
How to file a car insurance claim
Filing a claim should ideally start at the scene of the accident. After you assess the situation and make sure all drivers involved are OK, here are the steps you should take:
1.Call the police: Calling the police after an accident is a smart idea, even if there are no injuries. An officer can investigate the collision and take statements, which can expedite the claim process.
2.Exchange information with other drivers: Get contact information and insurance details from the other drivers involved, including their insurance company and policy number.
3.Gather evidence of the damage: Take photos of the damage to both vehicles and the accident scene. Insurers can use this information to figure out who’s to blame.
4.Call your car insurance company: If you were at fault, contact your insurance company’s claim department. You’ll be given paperwork to complete, which is where you’ll attach the photo evidence and police report. Your insurance company will contact the other driver’s insurer, and the two will handle the claim.
If you did not cause the accident, you’ll want to follow the steps above and file a claim with the responsible party’s insurance company. It’s also a good idea to alert your insurance company to keep them in the loop even if a claim won’t be filed through them.
When not to file an auto insurance claim
If you have car insurance, you should file a claim whenever your car gets damaged, right? Well, not exactly.
Before you report a claim, you’ll want to think about:
- The amount of damage
- Your deductible
- How a claim will impact your rate
- Whether anyone else was involved in the accident
If your car suffered damage that was less than or similar to your deductible amount, it’s probably best for you to handle the repairs yourself. Otherwise, you’ll have to pay your deductible and your insurance company could raise your rate. Insurers increase car insurance premiums between 26% and 32%, on average, after an accident. That’s between $360 to $460 extra premium a year, on average.
Also, you may not want to file a claim if the only vehicle involved is yours, depending on the severity of the damage.
How do insurance companies pay out claims?
If you cause the accident, your property damage coverage will pay for the other driver’s vehicle repairs and your bodily injury coverage will pay for their accident-related expenses if they were injured. The only exception is in no-fault states, where a driver’s personal injury protection (PIP) coverage pays for their injuries.
If you have a full coverage policy with collision coverage, your insurance company will pay an insurance settlement for your vehicle’s repairs, up to your car’s actual cash value. You will also have to pay your collision deductible.
So, who gets the money? If another driver is to blame and that driver’s insurance is paying for repairs, the insurer usually pays the insurance settlement to you or the body shop directly. However, if you have a lease or finance your car, the insurer will likely make the claim check out to you and the leaseholder or lienholder.
How long after an accident can you file an insurance claim?
The length of time you have to file a claim after a crash varies based on your state and the type of claim.
In many states, the statute of limitations is between two and four years. Check with your state’s insurance department to see how long you have to file.
Frequently asked questions
What do I do if the insurance company delays my claim?
If your insurance company is taking forever to process a claim, reach out to the adjuster to get an update and ask how you can expedite the process. If your state specifies a time limit in which insurers must resolve claims, make a note of the deadline and if the date passes, notify your insurance company right away.
What if the insurance company doesn’t pay what they promised?
In this case, you have the right to know why your claim payout was lowered or denied. If you believe that you deserve a higher payout, your best option is to consult a lawyer who can talk to the insurer on your behalf. In some states, you may be able to take your insurer to small claims court to get the money you’re entitled to.
What is insurance bad faith?
An insurance bad faith claim is when your insurance company deliberately does something to hurt your chances of receiving a fair payout. Examples include denying claims, underpaying claims, taking a long time to process a claim or misrepresenting your policy so you get a lower payout. If you suspect insurance bad faith, address the issue with your insurance company and if that does not resolve the issue, be prepared to consult an attorney.
Can you sue an insurance company for taking too long with your claim?
You are allowed to sue your insurance company for taking too long to resolve a claim. But if your state doesn’t have laws around the length of time an insurer has to resolve a claim, you probably don’t have grounds for a lawsuit.