Auto Insurance Claims: Claims Turnaround time, state insurance commissioners, turnaround time


Question
What is a turnaround time (date reported to final settlement made) , as per State or Federal law, for Any Auto or Homeowners claim? Is there a timeline set for Insurance companies to close the claim in a specified timeframe?

Answer
Hi Anand,

In most states an insurance company is required to respond to the initial claim within 30 days. However, that is just to respond. If the insurance company feels there are circumstances that require longer investigation, they can do so provided they notify you in writing. There is no specific time limit on settling the claim. As long as they have legitimate reason to continue investigating and provide you notification, it can continue for some time. In the case of a stolen car, the standard it typically 60 days. This is to provide enough time for the police to attempt to locate the vehicle. If you feel the insurance company is being unreasonable, you can file a complaint with your state insurance commissioners office or speak with an attorney.

I hope this helps
Richard Hixenbaugh