How long does it take for an auto insurance company to pay out a claim?

How long it takes for an insurance company to pay out a claim depends on your state and the circumstances. Most states require insurers to pay out a claim within 15 to 60 days, but the length of time also depends on what you claimed. 

You can speed up the process by maintaining good communication with your auto insurance provider. Find affordable car insurance quotes using our tool now.

Filing an auto insurance claim can be a stressful experience. However, auto insurance claims become even more stressful, when it’s taking a long time to receive your payout from your car insurance company. Learn how to calculate the actual cash value of your car.

How long does it take for an insurance company to pay out a claim? How long do you have to wait before receiving a check from your insurance company, and how do they calculate the loss ratio? Today, we’re answering any questions you might have about insurance payouts and timelines.

If you’re ready to buy car insurance, make sure you have the right auto insurance for your needs, just in case you have to make a claim.

Most Auto Insurance Companies Try to Settle Claims Within 30 Days

How long does it take insurance companies to pay out? Most auto insurance companies have a goal of turnaround time for insurance claims within 30 days.

That means if you get into a car accident on June 1, then your claim should be settled by July 1. Whether you’re in a fender bender or you’ve totaled your vehicle, the insurance company wants to complete your car accident claim within 30 days, maximum. That means that the insurance adjuster aims to have your claim settled, paid, and completed.

This video from Allstate touches on some things you should expect during the claim process.

 

https://youtu.be/4Ofv8WlnIH8

Of course, the actual length of time varies widely between insurance claims. More complicated claims may take months, for example. If there’s a dispute between the insurance company and the insured driver, then this can increase the length of the claims process even further.

If there are no disputes on your claim and you have provided complete documentation, then you have what’s known as a “clean claim.” A clean claim is for a straightforward accident with complete documentation and no major disputes.

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State Laws Vary for Auto Insurance Claims Timeframe

Some states have laws requiring companies to process a claim within 15 to 60 days. Some states have laws requiring insurance companies to process a claim within a certain length of time. That car insurance claim time frame is usually between 15 and 60 days, but it varies by state. 

Many states have laws requiring an insurance company to acknowledge that a claim has been made within 15 days of the customer making the claim, for example.

Other states have laws regarding the length of time the insurance company has to pay a claim. Insurance companies in New Jersey, for example, need to pay a bodily injury claim or personal injury claim within 60 days. Meanwhile, insurance companies in Texas, need to pay a claim within 5 days of the customer accepting the claim.

Insurance companies who don’t comply with state-mandated deadlines may face interest, fines, or penalties. This is why a claims adjuster would strive to complete the investigation and process the claims within the shortest amount of time possible.

Laws vary everywhere. The answer to how long does it take for an insurance company to pay out a claim in Florida, Texas, the UK, Jamaica, South Africa, Ireland, and Australia will all look different.

Your Auto Insurance Company May Pay For Some Expenses Immediately

So, how do insurance companies pay out claims? Immediately after an incident takes place, the insurance company may provide you with a certain amount of money to cover initial expenses – like roadside assistance.

Sometimes, these claims are deposited into your account immediately. In other cases, the insurance company reimburses you for these expenses before the remaining claim is processed — say, within five to eight business days. Remember that the claims payment will vary depending on your insurance rate.

Some Auto Insurance Claims Take Longer to Process

If you were in a minor fender bender, then your claim should be complete within a relatively short period. It’s an easy case with minor vehicle damage or injury to yourself.

However, if your claim involves medical bills, lost wages, and other compensation, then it can significantly increase the length of time of your payout. Medical claims, for example, take the longest to process.

The insurance company will need to coordinate with your healthcare provider for the actual cash value or total expenses incurred by your hospital bill. They may need to request medical records. It can take months before you receive complete compensation.

Read more:

• What happens if I disagree with Allstate’s decision on my auto insurance claim?
• How long does it typically take for Allstate to process an auto insurance claim?
• How long does it typically take for Nationwide to process an auto insurance claim?
• How long does it typically take for State Farm to process an auto insurance claim?

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What can delay the payment of an auto insurance claim?

What if your insurance claim is taking too long to settle? Several things can delay the payout from your insurance company, including all of the following:

Poor communication

Maybe you’re bad at responding to your insurance company. Maybe your insurance company is bad at responding to you. In any case, poor communication can significantly delay your claim payout.

You’re unhappy with your coverage, or you’re disputing parts of your coverage

Some people are surprised to discover what’s covered and what isn’t covered under their auto insurance policy. You might dispute certain coverage with your insurance company, which can add time to the claim payment.

You’re unhappy with the repairs

Your car has been repaired, but you’re unhappy with the repairs. In this case, you might request the auto shop to fix the issue and then ask the insurance company to pay for the added repairs.

It’s a natural disaster claim

If a natural disaster recently swept through your city, then there may be thousands of people simultaneously making auto insurance claims. This is common after a hailstorm or severe thunderstorm.

You haven’t paid for the deductible

Your insurance company can begin the repair process when they receive your auto insurance deductibles. If you don’t have cash for the deductible, then your claims process will be delayed until you pay the deductible.

You really want to make sure you make your claim in a timely fashion. Most claims are made quickly, but there are statutes of limitations in place just in case. NOLO lists these limits, as you can see in the table below. Search to find your state.

Statute of Limitations for Car Insurance Claims by State

Make the claim as soon as you can to ensure a timely payout. Ultimately, it’s in the insurance company’s best interest to pay your claim as quickly as possible. The faster they pay your claim, the more satisfied you’ll be with their business.

Typically, a “clean claim” with no disputes and complete documentation will be paid within 30 days, maximum. However, more complicated cases with disputes or incomplete documentation could take several months.

Make sure you have the right coverage for any damage you might have to claim in the future.

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1. 1. https://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

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