The question of how long an insurance claim takes is one of the most frustrating questions that insurance customers have for their insurance company. If you are asking this question, you are definitely not alone because you are among the millions of people waiting for their claims to be approved. Insurance claims can take any time, so you have to keep that in the back of your mind.
How long an insurance company takes to pay out a claim is totally dependent on the company and the amount of your claim. Some claims might be fast and so it might take a while for the company to get around the workings and the processes. However, in this article today we are trying our best to answer that question. We are going to be taking a look at the factors affecting the length of a claim filed by a customer.
How long does an Insurance Claim take?
This question is a very frustrating one. If you have been in a car accident or have an incident that you filed a claim for, you might have experienced a delay in your claim getting paid. Why is this entirely the fault of the company? It is due to several factors. It takes time for the company to pay your claim. After filing your claim, you are often left to wonder “How long does it take an insurance company to process a claim?”
One thing that you should know is that insurance claims can easily be played out within a few weeks or even months. Depending on the type of claim and the company that is involved, So there is no specific time frame for a company to pay out a claim. However, they will normally put it within a month. If it’s been about a month since you filed your claim, then the process is already taking too long.
How long does it take to accept or reject a Claim?
Most insurance companies normally take a lot of time before paying out their claims in the United States of America. So what state has a law that forces an insurance company to either accept or reject a claim within a specific period? This is so that the customer can have an idea of when the claim money is going to be paid.
Below are some of the states and the time frames it takes for an insurance company to either accept or reject a claim once filed:
- In California, insurance companies are usually given between 1 and 40 days to accept a claim filed by any of their customers. They are also mandated to pay out a claim within 30 days of the accepted date.
- North Carolina-North Carolina insurance companies are giving a total of 30 days, which is a month to accept or reject a claim. Then they are given a total of 10 days to make payment for the claim if the company accepts it.
- Texas: Texas has the smallest time frame for an insurance company to pay out their claim once it has been accepted. Insurance companies in Texas have at least 30 days to accept a claim and then 5 days to issue payment to the customer.
Why do Insurance companies take so long to pay out?
Now that you have seen an acceptable baseline for the number of days for a company to accept or reject a claim, let us look at some reasons why it takes so long for them to pay out. There are a wide variety of reasons why these companies delay in paying out claims to customers. Below are some of these reasons:
- The seriousness of the injury
- In the event of an accident, argue about who is at fault.
- Back-and-forth negotiations between lawyers
- Insurance claims are not dependent on one person.
- Errors when filing your claim.
These are some of the reasons why it takes time for certain companies or many insurance companies to pay out claims to their customers.
How to prevent delays to your Claims
If you are the one waiting for compensation from a claim that you filed, dealing with a delay in the claim is generally frustrating. As a result of this, the next time you want to fight and claim, there are certain things that you need to do so that you reduce the delay in your claim. To prevent delays in your claim, follow the below instructions:
- Please provide the current evidence of the incident upfront.
- Conduct thorough research on your state’s insurance claim policy or the law.
- Don’t be afraid to reach out to your insurance company if they are taking too long.
- Respond to all the requests and the paperwork sent to you by the company immediately.
- Do not lie to your insurance company.
These are some of the ways you can use to prevent delays in insurance claim payment when you file a claim. Pay special attention to the last one who says, “Do not lie to your insurance company because it will only make matters worse and take longer time to resolve.”
Frequently Asked Questions
How long after an accident can you file a claim?
If you are able to, you should find your car accident claim immediately. But if you are not, there is a certain time frame that is given by 30 states in which I see that you cannot file your claim anymore. Some states give you one year to file a claim. That gives you up to three years. However, you should immediately file your claim after an accident.
What if the insurance company doesn’t pay what they promised?
If the insurance company does not agree to pay what they promised, you have the option to appeal. It is your right to appeal your declined insurance claim by your insurance company.
Can you sue an Insurance Company for taking too long with your claim?
You are only allowed to sue your insurance company for taking too long to pay your claim if they have exceeded the time limit given by your state. On the other hand, if you still do not have a time limit on claiming the tenant, you have no right to sue them.
How soon can you file a claim after getting Insurance?
There is no timeframe for filing an insurance claim after getting your insurance in place. As long as there is a disaster or an incident that is covered by your insurance, you can file a claim. This means that if you purchase a car insurance policy this minute and you get into an accident the next minute, you can file a claim instantly.
Who is involved in the claims process?
Claims involve a number of different parties. Is it a car insurance claim you are filing? There are many parties that are involved. These are the parties’ drivers involved in the incident. Insurance adjusters from the involved companies, auto mechanics, healthcare facilities and staff, lawyers, if there are disputes or lawsuits, etc.