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Q

How long can an insurance company take to settle a car insurance claim?


A

We wish could tell you exactly how long your specific claim will take to be settled, but it just isn't that simple. There is not a nationwide appointed amount of time that an auto insurance company must settle your claim by, though your particular state may have set a deadline for them.

How long a car insurance company will take to process and settle a claim varies according to each situation, but that time period is based on both state laws and the insurance company's guidelines.

Many states have specific time requirements mandated by law or arbitration clauses. Unfortunately, some states are vague in their settlement time period by only saying in their laws that an automobile insurance company must settle a claim within a "reasonable" amount of time.

This type of statement of course is very subjective. Reasonable time to a person that is waiting on their car to be repaired may be two days, while two weeks may seem reasonable to the insurance company paying out the claim.

Thankfully,there are other states are more specific in their laws and give an exact time period in with an insurance claim must be settled. Typically when states give a specific time period it will 30 days.

Claims may be allowed by law take longer to settle, if there are extenuating factors, such as more time to investigate a stolen car, as long as the company provides you with an explanation and continues to notify you of where the claim stands.

Most car insurance companies work to settle your claim as soon as possible. It is in their best interest to investigate and repair your vehicle or offer you a settlement amount as promptly as possible so that their incurred costs, such as storage fees, rental car costs and other miscellaneous expenses, do not become excessive.

To find out what your state laws are in regards to how long an auto insurance claim can take to be settled, speak to your agent or contact your state's insurance regulator

If your agent is not able to explain to you what to do in this situation or fulfill your car insurance needs, contact a CarInsurance.com agent and they can explain not only insurance terms and claim procedures but also tell you how they can get you low cost car insurance.


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