Insurance companies in Texas have 35 business days to settle a claim after it is filed. Texas insurance companies also have specific timeframes in which they must acknowledge the claim and then decide whether or not to accept it, before paying out the final settlement.
Insurance Claim Timeline in Texas
15 business 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.
15 business days to make a decision on the claim after receiving completed proof-of-loss forms.
5 business 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.
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.… read full answer
Some states have specific laws dictating how long an insurance company has to make a ruling and pay out on a claim. For example, insurers in California have 40 days to accept or deny a claim and 30 days to issue payment once the settlement has been accepted. And in Texas, insurers must decide on a claim within 45 days and make the payment within five days of approval.
Not all states provide exact timeframes, though. In Massachusetts, for example, insurance companies must pay claims where fault is clear within a “prompt and reasonable” period of time.
Factors That Affect the Claim Timeline
State timeframes for insurance claims (some states are stricter than others)
Type of claim being filed (bodily injury takes longer than property damage)
Extent of physical damage or injuries (severe accidents can take a long time to settle)
Communication between drivers, insurance companies, and adjusters (slow communication delays the claim timeline)
Understanding of policy and coverage (you might think your policy covers you in a situation when it really doesn’t)
Ability to pay insurance deductible (your insurance company won’t pay out until you’ve paid your deductible)
In particular, the type of claim being filed and the extent of the physical damage or injuries involved can significantly impact the payout timeline. Bodily injury claims take the longest to settle because multiple parties are involved, including your doctor, the car insurance company, and your health insurance provider.
Injury settlements usually have to wait until the patient has reached the point of maximum medical improvement (MMI). This is when an individual has made a full recovery or has a full assessment of the extent of their injuries and the expected long-term medical costs. If it takes longer than 30 days for the patient to recover, then the settlement could be pushed back.
Conversely, a straightforward property damage claim where fault is clear can be settled in as little as two weeks.
If Your Insurance Company Is Not Cooperating
Even if your state doesn’t have specific laws establishing a claims timeline, you still have the right to be paid quickly and efficiently by the insurance company. If your insurance company is acting in an unethical manner and delaying payment without a clear reason, you can file a “bad faith” lawsuit. In addition to your original settlement amount, you could be paid extra for interest and penalties.
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
How to Determine Fault in a Car Accident
Take pictures of the vehicle damage and accident scene.
Find witnesses who saw what happened.
Give your statement to the police and file a report, to aid in their investigation.
Provide the insurance adjuster with all of your evidence and information.
Who Determines Fault After a Car Accident?
When you file a claim after a car accident, the insurance company will assign an adjuster to your case. Adjustors evaluate all of the evidence related to the accident and determine who is at fault.
Insurance adjusters make this decision using the legal definition of negligence, which is when a driver fails to exercise the same amount of caution that a “reasonable person” would under the same circumstances.
States have different ways of handling at-fault accidents based on the degree of negligence shown by each driver. Each system affects how damages can be awarded differently, too.
State Negligence Laws & Fault in Car Accidents
Expenses are covered based on the degree of responsibility that each driver has for the accident. Used in 12 states, including California and Florida.
Modified Comparative Negligence
Your expenses will only be covered by the other driver’s insurance if you are less than 51% at fault. Used in 33 states, including Texas and Illinois.
You cannot recoup expenses at all if you share any blame for the accident. Used in five states, including Maryland and Virginia, plus the District of Columbia.
How to Make the Fault Determination Process Easier
The more information and evidence that you gather after a car accident, the easier the insurance adjuster’s job will be. Since liability can sometimes come down to your word versus the other driver’s, get the names and contact information of any witnesses to the accident. Also, prior to leaving the scene, take plenty of pictures of the damage to both vehicles, the debris from the accident, and anything in your surroundings that could be relevant.
You might need to call the police and file a report, too, depending on the extent of any injuries and property damage. Officers might issue citations as they investigate the accident, and while a citation doesn’t legally prove who was at fault, it could be used as evidence of negligence in a lawsuit.
No, Texas is not a no-fault state for auto insurance. Texas is an “at-fault” or “tort” state, which means the person who is at fault for a car accident is responsible for paying for other people’s injuries and property damage resulting from the accident. Additionally, unlike in no-fault states, drivers in Texas can file lawsuits to seek compensation for even basic medical expenses after an accident.… read full answer
In typical no-fault states, drivers are required to carry personal injury protection (PIP) insurance to pay for their own medical expenses after a car accident, regardless of fault. In Texas, PIP is not required.
Key Things to Know About Insurance in Texas
When an accident occurs, the insurance company for each driver who was involved will assign an adjuster to determine who was at fault. To collect payment for their losses, victims must file a claim with the at-fault driver’s insurance company.
Depending on how long fault takes to be determined, drivers can file a claim with their own insurance company if they have coverage applicable to their own expenses, such as collision and comprehensive Their insurer can then recoup the cost from the at-fault driver’s insurer if the policyholder is not determined to be at fault.
Texas uses a modified comparative (51%) negligence system, meaning drivers can't collect any damages from the other parties if they were 51% or more at fault. If they were less than 51% at fault, drivers can collect damages minus the percentage that they were at fault. So if they were 30% at fault, they can recover 70% of what they spent on damages after the crash.
Being an “at-fault” / “tort” state helps keep Texas’s insurance costs relatively low, compared to no-fault states.
Texas requires all drivers to carry liability insurance, a type of insurance that pays for others’ expenses after you cause an accident, such as damage to others’ vehicles and their medical expenses.
In addition to Texas’s minimum coverage requirements, you may want to purchase types of coverage that will pay for your own expenses after an accident. For example, collision and comprehensive insurance will cover damage to your vehicle, regardless of fault.
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