Candace Baker, Car Insurance Writer
Insurance companies in Alabama have 75 days to settle a claim after it is filed. Alabama insurance companies also have specific time frames in which they must acknowledge the claim and then decide whether to accept it, before paying out the final settlement.
Insurance Claim Timeline in Alabama
- 15 days to acknowledge the claim and send the policyholder instructions and paperwork. This includes proof of loss forms, which serve as a sworn statement from the policyholder about the scope of the damage or injuries.
- 30 days to make a decision on the claim after receiving completed proof of loss forms.
- 30 days to make the final payment if the claim is approved.
There are several factors that can affect exactly how long it takes for an insurance company to settle a claim. For example, claims involving serious or multiple injuries take longer to settle. Additionally, poor communication between the driver, insurance company, and insurance adjuster can slow down the process.
Still, you are entitled to an efficient settlement. If you think that your insurance company is violating the law or operating unethically, you can file a “bad faith” lawsuit, which may award you the original settlement amount with added interest and penalties.
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