Auto Insurance Claims: Auto insurance claim, reservation of rights.

Question
In PA how long does an insurance company have to accept or deny an automobile claim? Police were called to the scene of the accident and the @ fault driver was charged.  Now she is not returning calls from her insurance company. . . I've contacted the insurance company and they advise they cannot do anything until they hear from their insured. The accident occured on Nov. 28th. Almost 40 days ago. In the meantime, we are without a car or the means to repair the car.  Also have been advised that thE @ fault driver only has $ 5,000 worth of coverage - and she caused an accident with way more damage than that. My car and another car were involved. I have been told we will have to sue to recover the amount of money to repair the car. I dropped collision on this vehicle approx. 6 months ago as it is a 2002 with over 100,000 miles.

Answer
Karen,

  The laws are different for first party and third party claims.  Claims by you against your own carrier are first party claims.  You have a third party claim.  Here is a quote from some PA regulations that may be of assistance. . .

"§ 146.6. Standards for prompt investigation of claims.

Every insurer shall complete investigation of a claim within 30 days after notification of claim, unless the investigation cannot reasonably be completed within the time. If the investigation cannot be completed within 30 days, and every 45 days thereafter, the insurer shall provide the claimant with a reasonable written explanation for the delay and state when a decision on the claim may be expected."


    What that means is that if their insured doesn't cooperate, they can't complete the investigation and don't have to pay until they get the information they need.  The insurance company will typically send a "reservation of rights" letter.  Read my article about same here:

http://ezinearticles.com/?Reservation-of-Rights---What-is-It?&id=2839213

   I hope this helps.