How Long Does an Auto Insurance Claim Take?

It usually takes two to four weeks to complete an insurance claim. While insurance carriers have about 45 days to investigate a claim in most states, they may extend this time if the claim is for a serious accident.¹ Keep this in mind when filing an insurance claim.

When the cost of accidents is high or someone contests fault, the insurance carrier can request an extension to get the details they need to make the right decision about the claim. You should also note that insurance carriers cannot control how busy auto body shops are, which can delay some claims due to scheduling problems.

Here’s the amount of time car insurance companies in each state have to pay claims, according to state laws. Note that the time limit begins after the amount of time companies have to investigate claims, which also varies by state.

There are different parties involved in the claims process. For a simple one-car accident, you would have yourself, the claims adjuster, and the auto body shop involved in the claim. If there are injuries or other cars involved, you may have doctors and other insurance carriers involved in the claim.

There are certain times when you should definitely file a claim. If the accident results in any injuries, you should file a claim. Also, if it is unclear whose fault it is, you should file a claim. File a claim in accidents where you damage another vehicle in order to pay for their damages.

You do have time to decide if you want to file a claim. There is a statute of limitations that is no less than one year. Each state is different. We list the statutes of limitations below depending on whether the claim is for an injury or property damage:

“When it comes to filing an auto insurance claim, timing is crucial,”  says personal injury attorney Barry P. Goldberg. “You should definitely file a claim when there’s significant damage or injuries that exceed your deductible or if another party is involved and you need your insurer to cover their expenses. These situations often involve high costs that insurance is designed to cover.”

There are some accidents where it doesn’t make sense to file a claim and have your insurance premium go up. If you are in an at-fault accident and the damage is less than the deductible, don’t file a claim. The same is true for minor accidents where you’ll see a premium increase for three to five years because of the claim, even though you could have taken care of it easily out of pocket.²

“If it’s a minor incident, like a small dent or scratch, and the repair cost is below or slightly above your deductible, you might consider paying out of pocket,” says Goldberg. “Filing too many claims can lead to increased premiums, so weigh your options carefully.”

There are different types of insurance coverages that you can make a claim on. Here’s a quick rundown of them.

There are certain things that you must do in order to properly file a claim. The process includes the following steps:

1. Exchange information with the other party and gather evidence about the accident.
2. Get a police report if another car is involved.
3. Report the accident to and file a claim with your insurance carrier in a timely manner, adhering to the statute of limitations in your state.
4. Select an auto body shop to fix your car if there is damage.

There are two types of insurance claims: first-party and third-party claims.

A first-party insurance claim is a claim that you file with your own insurance carrier. You are their client, thus the first party.

A third-party claim is an insurance claim you put on another person’s insurance policy. Third-party claims are common when you file a claim on the insurance policy of the person who hit you. You are not its client; thus, you are a third party.

Claims such as glass replacement and roadside assistance are usually handled quickly and are often first-party claims. Claims that take longer include medical claims, physical damage claims, and total loss claims.

These are some circumstances that can delay the completion of a claim:

• Poor communication between you and the claims department
• Misunderstandings about coverage
• Dissatisfaction with repairs
• Natural disaster claims
• Inability to meet the deductible

There are some simple ways to speed up the claims process:

1. File promptly.
2. Be transparent about fault and actions leading up to an accident.
3. Provide as much detail as possible about what happened during the accident.
4. Be available for adjusters and claims representatives to speak with you.

How an insurance company pays out a claim will depend on the type of claim and the coverage the policyholder has. Liability coverage pays the medical bills and property damage of the other driver and their passengers to the auto body shop and medical providers directly. The exception is in no-fault states, where personal injury protection pays for injuries.

If you have collision coverage, the insurance company pays the auto body shop after you pay the deductible. Most insurance companies pay the auto body shop directly. However, there are instances, such as when the policyholder goes to an independent body shop, when the insurance company will pay the policyholder directly.

If a claim is taking too long, you should contact your claims adjuster or insurance agent to see what the holdup is. Ask about getting a rental car while your car is in the shop so that you can continue to go to work and run errands. If the time frame seems unreasonable, you may want to contact an attorney or call the state insurance department to file a complaint. See the contact information for your state’s insurance department below:

An insurance adjuster is a person who works for the insurance carrier to evaluate claims and determine the value of them. The value determines how much the insurance carrier will pay in the claim.

Typically, insurance claims don’t take more than a month to complete unless there are reasons for the delay, such as major injuries or questions about coverage. The best insurance companies will pay claims out fairly and efficiently. You should make sure that you are available to talk to claims adjusters and provide as much information about the accident as possible to expedite the process. Visit our auto insurance FAQs page to learn more about auto insurance in your area.