WalletHub, Financial Company
@WalletHub
An insurance company has 10-45 days to settle a claim in most states, and it takes about 30 days on average to settle a car insurance claim. For instance, insurers in New York must pay a claim within 35 business days, while Virginia insurers must settle a claim “reasonably promptly.”
Insurance companies always have to follow state laws, which are sometimes divided into separate timeframes to acknowledge a claim, decide on a claim, and pay a claim. The table below lists the total amount of time that an insurer has to complete the process.
How Long Car Insurance Companies Have to Settle a Claim by State
| State | Claim Settlement Time Limit |
| 75 days | |
| 40 working days | |
| 40 days | |
| 45 working days | |
| 85 days | |
| "Reasonably promptly" | |
| "With reasonable promptness" | |
| 45 days | |
| 64 days | |
| 40 days | |
| 45 days | |
| "Reasonably and promptly" | |
| 45 days | |
| "Reasonably promptly" | |
| 75 days | |
| 25 working days | |
| 45 days | |
| "Reasonably promptly" | |
| "Within a reasonable time following receipt of written notice" | |
| 30 working days | |
| "Promptly" | |
| "Promptly" | |
| 45 business days | |
| 40 to 50 days | |
| 25 days | |
| "Reasonably promptly" | |
| 45 working days | |
| 80 working days | |
| 35 working days | |
| Between 40 and 100 days | |
| "Reasonably promptly" | |
| 35 business days | |
| "Reasonably promptly" | |
| With "reasonable promptness" | |
| 46 days | |
| 75 days | |
| 60 days | |
| 25 days | |
| 55 business days | |
| With "reasonable promptness" | |
| No specific requirement | |
| With "reasonable promptness" | |
| 35 business days | |
| 45 days | |
| 35 business days | |
| "Reasonably promptly" | |
| 45 working days | |
| 40 working days plus a “prompt” investigation | |
| 10 days | |
| "Reasonably promptly" |
What to Do While Waiting for a Claim Settlement
While you’re waiting for an insurance claim to be settled, you can help speed up the process by responding quickly to any requests for information.
If your claim is taking too long to settle, you have several options. You can start by directly asking your insurer what is causing the delay. If you don’t receive a satisfactory response, you can reach out to your state’s insurance regulator for help. And if you believe your insurer is acting in bad faith, you might want to hire an attorney.
For more information, check out WalletHub’s complete guide to auto insurance claims.
People also ask
What is a waiver of subrogation?
A waiver of subrogation is a legal clause that prevents an insurance company from recovering the money they paid on a claim from the responsible party’s insurer. In car insurance, a waiver of subrogation usually keeps the not-at-fault driver’s insurer from recouping claims payments from an at-fault driver.
Waiver of Subrogation Example
Say Driver B ran a red light and hit you when you were driving legally. You need your car repaired soon,...
read full answerHow long does it take for insurance to pay out for a car accident?
It usually takes 30 days for insurance to pay out after a car accident. Most car insurance companies try to resolve accident claims as quickly as possible, which typically leads to a payout within a month of a claim being filed. However, it might take longer depending on several factors, including the state, the type of claim being filed, and the severity of damage or injuries.
Some states have specific laws dictating how long...
read full answerCan I keep insurance money from a car accident?
Yes, you can keep car insurance money from a car accident, rather than using the money for repairs, if you own your car outright and the insurance company did not pay the mechanic directly. Depending on the details of your insurance policy, you may not be required to use your claim settlement check to repair your car. But you should keep in mind that if you don’t repair the damage and it results in subsequent problems, your...
read full answerDid we answer your question?