The time needed to process an auto insurance claim correctly varies according to each situation. Each claim is unique and every insurance company has different procedures for claims. That being said most states do mandate how long an insurance company can take to settle a claim. Some states are vague by only stating it must be within a "reasonable" amount of time while other states give an exact time period in with an insurance claim must be settled.

For example the New Jersey Automobile Insurance Bill of Rights states that claims should be handled promptly and fairly. The New Jersey Administrative Code goes on to state that there should be no unreasonable delay and unless there are specific jurisdiction laws physical damage claims should be settled within 30 days. If it is not settled by check, repair of vehicle or replacement in 30 days then the insurance company should provide the insured with a written letter of explanation.

In Washington State their code requires the insurer to acknowledge notification of a claim with 15 working days. Your insurance company is required to provide any necessary claim forms, instructions, and reasonable assistance so that you can comply with the policy conditions and any reasonable requirements.

The WA code also requires the insurance company to complete its investigation within thirty days after notification of a claim, unless such investigation cannot reasonably be completed within that time. If the company can’t complete the investigation within 30 days they are required to keep you updated on the progress of their investigation.

In New Hampshire, the insurance company must acknowledge receipt of your claim report within 10 working days, and keep you informed at least every 30 days as to the status of the claim. There is no specific time limit in which the company must settle your claim. Since each claim is different, the length of time to settle may vary. Once an amount is agreed upon between you and the company, payment must be made within 5 working days.

To find out what the laws or statutes are regarding the claim process in your state try contacting your state's insurance regulatory body. This state agency usually has a consumer division that can answer questions such as yours regarding the length of time an insurer can take to settle a claim on a car that was stolen and not recovered.