Candace Baker, Car Insurance Writer
@candacebaker
Insurance companies in New Jersey have 30 days to 45 days to settle a claim after it is filed, depending on the type of claim. For all claims, insurers have 10 working days to acknowledge the claim and send the necessary paperwork.
Time Frames for Settling Insurance Claims in New Jersey
- All claims: 10 business days to acknowledge the claim
- First-party claims: 30 calendar days to either make a payment or provide you with written notice explaining the reason for the delay
- Third-party claims: 45 calendar days to investigate and make a payment
First-party claims are when you file a claim with your own insurance company, while third-party claims are filed with someone else’s insurance company when you are not at fault.
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.
People also ask
How long does it take for insurance to pay out for a car accident?
It usually takes 30 days for insurance to pay out for 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 answer by WalletHub, Financial CompanyHow can you tell who is at fault in a car accident?
You can tell who is at fault in a car accident by considering driver and witness statements, dash cam footage, the location of vehicle damage, the position of the vehicles, or any citations issued after the accident. Insurance companies will also use adjustors and accident reconstruction experts to determine fault in car accidents. These expects consider factors such as the point of impact, evidence of sudden acceleration, and the angle of the steering wheel.
...
read full answer by WalletHub, Financial CompanyIs New Jersey a no-fault state?
Yes, New Jersey is a no-fault state. New Jersey uses a “choice” no-fault insurance system, meaning you are allowed to opt out of the no-fault rules, which require New Jersey drivers to purchase personal injury protection (PIP) insurance to cover their own medical bills after an accident regardless of who was at fault. Additionally, no-fault laws in New Jersey place limitations on a driver's right to sue after an accident. Drivers in New Jersey who do not...
read full answer by Delaney Simchuk, Car Insurance WriterDid we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertisers compensate WalletHub when you click on a link, or your application is approved, or your account is opened. Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.