How long does an insurance company have to settle a claim?

States have regulations dictating how long insurance companies must wait before deciding on a claim and paying out a claim, and insurance companies must always respect those laws. Calculate the time required for an insurance company to handle your claim. In most areas, an insurance provider has between 10 and 45 days to resolve a claim, and on average, an automobile insurance claim is settled in 30 days. It takes 35 working days for insurance companies in New York to pay claims, although in Virginia they are required to do it "reasonably quickly."

Tips for Keeping Busy While Awaiting a Settlement
Responding swiftly to information requests from the insurance company will assist expedite the claim settlement process. There are other choices available to you if the resolution of your claim is taking too long. As a first step, you may contact your insurance company directly about why the delay is occurring. As a last resort, you might contact your state's insurance regulator for aid. An attorney may be necessary if you have reason to suspect your insurance is operating dishonestly.


An insurance company's time frame for resolving a claim is defined as "reasonable."
Insurance companies are not required to settle vehicle accident claims within a specific time frame, as previously stated. There is no timeframe established for insurers to accept or refuse claims; the legislation merely defines how long they have to pay out claims once they have been accepted. Insurers are required to resolve disputes within a "reasonable period of time". But the question is: What does this mean? After a vehicle accident, how long should it take an insurance company to resolve the claim?

Depending on the specifics of the circumstance, the response is either yes or no. It's safe to assume that insurance companies will require additional time to thoroughly investigate and assess claims containing a greater number of variables and aspects before they can be resolved. On the other hand, claims that are very basic tend to be resolved significantly more quickly. A claim amount can be settled in as little as a few weeks or as long as a year or longer, depending on how complex the case is.

Here are just a few of the numerous factors that might influence how quickly your insurance company accepts or denies your claim:

  • The extent of your wounds is evident.
  • What your losses/damages have been
  • The accident's complication is evident.
  • The number of people that were at fault.
  • Communication between you and the insurance adjuster to determine if and how much culpability is shared
  • Documents and proof are readily available for review.
  • Disagreements on who is at fault, who is covered, etc.
  • Whether or not witnesses give contradictory accounts

The insurance provider is obligated to handle your claim "promptly," but you are also expected to report the accident and make a claim within a reasonable length of time. Insurance companies are more likely to contest or refuse your claim if you do not meet their requirements.

Also Read: What are the 5 main types of insurance?

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