How Long Does an Insurance Claim Take? 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 it takes an insurance company to process a claim. The short answer is, usually around 30 days. However, it can vary depending on a few other factors.
Car owners often have other questions about insurance claims. Through this page, you will be able to get all your answers about how long an insurance claim takes.
How Long Does an Insurance Claim Take?
In as little as a few weeks, the car insurance claim process, or as long as a few months, Moreover, the time frame of an insurance claim depends on the insurer, the state, and the type of claim.
A lot of states protect consumers by encouraging insurance companies to handle car accident cases promptly. Some states even require a specific settlement period, like 30 days. Here are some examples:
- In North Carolina, insurers have 30 days to acknowledge a claim and 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.
- In California, to accept or reject a claim, the insurers have 40 days and then 30 days to issue payment once a settlement is agreed upon.
Moreover, 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.
What an Insurance Claim
An insurance claim is when a policyholder requests your insurance company to pay for something your insurance covers, such as a car accident, a house fire, or a visit to the emergency room.
How Do Insurance Claims Work?
To receive payment from your insurance company for a covered event, you’ll have to make a claim. This generally involves completing a form documenting the covered event and requesting payment and then submitting the form to the insurance company. If your claim is accepted, you may have to pay a deductible, which is the amount you’re responsible for paying before insurance kicks in.
Auto, homeowners, and some health insurance policies have a deductible, and how they work can differ depending on the type of insurance. The deductible is $500. If you file an auto insurance claim for $3,000 worth of damages, the insurance will pay out $2,500 ($3,000 minus the deductible). A dollar amount may be the deductible for a homeowner’s policy (as well as auto insurance) or a percentage of the insured value of your home.
If your home is insured for $300,000 and you have a 1% deductible, your deductible would be $3,00. Natural disasters covered by homeowners’ coverage, such as earthquakes, floods, and hurricanes, may have deductibles of up to 20%.
Sometimes you have to pay the deductible to whoever is repairing your car or home. In other words, your insurance company simply subtracts your deductible from the amount they pay out for your claim. In others, your insurance company simply subtracted your deductible from the amount they paid out for your claim.
How soon can you file a claim after getting insurance?
On a normal basis, most states give you two years to file a car insurance claim, but depending on where your accident happened, you may have anywhere from one to 10 years to file. The claim type varied the time limits, even within the same state. For example, the time allowed for a comprehensive claim may be different from that for a bodily injury claim.
Every state has its own statute of limitations, which tells you how long you can wait to file a claim or lawsuit, and it can differ depending on what you are claiming, like bodily injury or property damage.
Is there a time limit for insurance claim settlements?
The insurance company has about 30 days to investigate your auto insurance claim, though the number of days varies by state. Most state laws require claims to be processed promptly and without unnecessary delays, but it can take longer to process and settle, especially if the accident was serious or coverage investigation is needed.