QuestionAt this point I have been without an automobile for over 30 days from a totaled car theft claim and my policy doesn't cover any auto rentals.The Insurance Co is telling me they have 30 more days to investigate the claim because it has gone into special investigations. I am in California
I am a full time college student, single mother of two and unable to get around. what are the laws on time limits for settling claims?
AnswerHello Tasha,
60 days to investigate an insurance claim? How soon after the theft was the vehicle recovered?
Even with SIU involved, it should not take 60 days to investigate an insurance claim. That is, as long as you are cooperating. Have you submitted all necessary paperwork, provided a statement as required,and complied with their requests?
An SIU investigation will probably focus on the following.
Do other people drive or have access to your car? Have they cooperated? Along those lines, is it possible that someone you know "stole" the vehicle? Did you loan it to someone who subsequently wrecked and abandoned it? How did the thief gain access to the car? Was there forced entry? Was the vehicle started with a key? If so, how did they get the key?
The SIU investigation might also include a forensics examination of your vehicle. Even so, there is no reason for this to take 60 days, unless perhaps the car was recovered on day 28.
Insurance companies must conduct all investigations in a fair, impartial, prompt manner. Depending on when the car was recovered, 30 days should be sufficient to conduct a claims investigation. If the SIU is going to set you for a sworn statement (an Examination Under Oath or EUO) that should be done immediately following an analysis of the evidence they have collected. An additional 30 days sounds excessive if they've had access to your car all along. What did they do in the first 30 days?
If you are summoned for an EUO, you must appear. Failure to appear will no doubt result in a denial of your claim. You are allowed to have an attorney present at your own expense.
California, like other states, has laws that require fair claims handling. I strongly suggest you visit my website so you can read the articles I have posted that concern bad faith, claims delay, and claim investigation. I think you will find it extremely useful. See http://SolutionsForYourInsurancecClaim.com
If you are so inclined, I also have a $19.95 e book available which goes into greater detail. But read the articles first, and then decide if you need the more serious help offered in the book.
One other thing - are you sure you do not have rental coverage? Check your Declarations Page to be certain. Sometimes insurance companies will not allow rental reimbursement if a claim is under SIU investigation. But if the claim is eventually paid, and you have paid for a rental, your expenses are reimbursed up to the limits of your policy. If you don't have rental coverage, I would strongly suggest you get it. It's cheap.
Please feel free to follow up if necessary. Hope this helps.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
