How long an insurance claim takes to settle depends on the details of the claim. However, on average you can expect your insurance company to pay a claim in about 30 days.
Last updated: Jul 5, 2024 Compare quotes in less than 5 minutes
Written by Elizabeth Rivelli
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The average car insurance claim time frame is 30 days. However, how long it takes to settle a car insurance claim completely depends on factors like the accident's severity, any injuries and questions of fault.
While there are state laws regulating the claims process, not all states have a time limit for insurance claim settlement.
If you've filed a claim and are waiting for that check, it can feel endless; however, many factors affect the length of the claims process. How long does an insurance claim take? How do insurance companies pay out claims? Is there a way to prevent claim delays? Read on to find out.
The car insurance claim process can be resolved in as little as a few weeks or as long as a few months. The average wait time for an insurance payout depends on the insurer, the state, and the type of claim. A total loss claim payout may take longer than a quick repair, which might be completed in a matter of days.
Personal injury claims usually take longer to settle than those involving only property damage. Situations where a claim might take longer include:
Every claim is a little different, so it's best to ask your adjuster for an estimate of how long the claim process will take.
How long it takes for a claim to be investigated depends on the type of claim and severity of the damage. For some small claims, you may only need to submit photos of the damage and that's the extent of the investigation. In a more serious accident, the adjuster will likely need to see the damage, investigate the circumstances of the accident, talk to witnesses and determine fault.
In most states, insurance companies have to accept or deny your claim within a certain time limit. The adjuster will need to complete the investigation in that time frame.
In most cases, you should hear from your adjuster within a few business days of filing your claim. This may be in the form of an email, a phone call or a letter in the mail. The initial contact will likely confirm that the claim has been received and is being investigated and provide you with the next steps.
How long it takes to settle a claim and how long it takes between finalizing the settlement and getting the insurance check are two different timeframes. While the timeframe for an insurance claim investigation, determining fault, and agreeing on the settlement amount can vary, the amount of time to get a check when all of that is done is generally set by law.
Once the claim is closed, you can expect a check five to 30 days later, depending on state law.
A total loss check should pay out within the same time frame as any other claim. Once the insurance company determines that the vehicle is a total loss, it will issue a check. Some states have laws regarding how long the insurance company has to issue that check.
State laws regulate insurance companies, which set the timeframe for claims to be settled and paid.
Most states protect consumers by requiring insurance companies to handle car accident claims promptly. Some states even require a specific claim settlement timeline, often 30 days. Here are some examples:
There are a variety of reasons for delayed claim payouts. Some of these factors are in your control, but unfortunately, some of them aren't. Here are a few of the biggest reasons:
It's also important to mention that some insurance companies are just slower to pay out claims than others. For example, if you work with a small insurance carrier that only has one adjuster, it could take much longer to receive your payout. Large insurance companies have teams of adjusters who work to resolve claims all day long.
However, there are laws against undue claims delays. An insurance company needs to provide a payout within a certain number of days from the time the claim is settled and everything is finalized.
Dealing with a delayed claim can be incredibly frustrating. Below are some ways that you can prevent a delay when filing a claim:
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:
"It's important to choose a reputable insurance provider to avoid issues like delayed claims," says Lauren Mckenzie, a licensed insurance broker at LearnandServe.org, an affiliate of A Plus Insurance.
TIP Carefully research your insurance company before you buy a policy. Working with a reputable insurance company is the best way to ensure timely claims processing. Don't choose your insurance just for a cheap rate; it may cost you in the long run.
"Just because a company may be the cheapest, doesn't mean it has the best ratings when it comes to claim processing. Pay close attention to reviews and third-party ratings to get a good sense of a company's customer satisfaction and claim satisfaction before you buy a policy," Mckenzie says.
If your insurance company is taking a long time to process a claim, you can take matters into your own hands. Reach out to the adjuster who is overseeing your claim and ask for an update on where they are in the process -- and what you can do to expedite things.
"The best thing you can do to speed up the claim process is to make sure you are cooperating," Mckenzie says. "In many cases, insurance adjusters need additional information from you and other drivers involved. And if someone can't be reached, it slows the claims process down."
If your state specifies a time limit in which insurers must resolve claims, make a note of the deadline. If the date passes, notify your insurance company right away. Depending on your state's laws, you might have grounds for a lawsuit if the claim doesn't get resolved promptly.
If you have reason to believe that your insurance company is slowing down the claims process there are a few things you can do.
You are allowed to sue your insurance company for taking too long to resolve a claim, but bear in mind that if your state doesn’t have laws around the length of time an insurer has to resolve a claim, you may not have grounds for a lawsuit.
Speak to a lawyer if you feel your claim is being unduly delayed; many lawyers offer a free consultation and can determine whether or not you have a case during that process. Bear in mind that lawyers are expensive; make sure a lawsuit is worthwhile before you start the process.
Just because you think a loss is covered, doesn't mean that you are automatically entitled to a payout. There are a number of situations where your car insurance company will not give you any money after a claim. they include:
"All claims are subject to investigation. For example, if the incident in question happened before you got car insurance, it will get denied because your policy does not cover you retroactively, " Mckenzie says.
"If you get into an accident and don't call the police, there's no official report to verify the details of the incident. If the claim adjuster can't determine what happened and who was liable using other evidence, your claim might get denied, " Mckenzie says.
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.
An insurance "bad faith" claims handling is when your insurance company deliberately does something to hurt your chances of receiving a fair payout. Examples include denying legitimate 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.
Your insurance policy is essentially a contract between you and your insurer. Therefore, your insurance company is obligated to provide a payout when you experience a loss that is covered under the terms of the policy.
However, keep in mind that certain circumstances can prevent you from getting the money. For example, if you get into an accident and, during the investigation, the insurance adjuster discovers that you lied on your application. In such a case your claim could get denied, even though the loss was technically covered based on the policy agreement.
