Are there any specific time limits for an insurance company to pay a claim?
• My auto was declared a total loss. Is my insurance company required to pay me the replacement cost ? • The accident I was in was determined not to be my fault. The insurance company is offering far less for my vehicle than what I owe. Don’t they have to at least pay-off my loan ? • May I keep my auto if I have a claim and the insurance company declares it a total loss? • Am I entitled to a rental vehicle and for how long? • Do I have to hire a lawyer to defend me if I’m sued because of an auto accident? Q: Is automobile insurance required? A: Most states require car owners to buy a minimum amount of bodily injury and property damage liability insurance before they can legally drive their cars. All states have financial responsibility laws, which means that people involved in an automobile accident will be required to furnish proof of financial responsibility up to certain minimum dollar limits. Most drivers purchase automobile liability insurance to comply with state financial respon
• A: While there are no specific time limits for the settlement of claims, most states require insurance companies to pay all claims in a prompt and reasonable amount of time. However, what constitutes “prompt and reasonable” may vary from claim to claim. Unique situations, special circumstances or abnormal increases in case loads due to, for example, weather events such as a blizzard or hurricane, can slow the process down. Check with your state’s insurance division for any specific time frames your insurer must follow.
