Auto Insurance Claims: Investigation into motor vehicle total loss, state insurance regulation, state regulator

Question
Hi Charlie,

Approx 5 months ago, my vehicle was intentionally damaged by an unknown 3rd party.  This resulted in the total loss of my vehicle.  

My insurance company has since conducted an investigation into this incident.  This investigation included hiring an investigator to interview meand people i was with the night of the incident.  This was approximately 5 months ago and now my insurance company advises that they want to wait for the results of the police forensic investigation before they determine whether to pay out my insurance.  

Are insurance companies allowed to wait for the results of a criminal investigation?  I have spoken to the police and they have stated that my case is a low priority and may not ever be solved.  How long are insurance companies allowed to wait before honouring the insurance contract?

My frustration is that i have not had a vehicle for 5 months now, and the insurance company doesn't seem to care.  I thought i paid them to assist when incidents like this happen and they appear to be 'dragging their feet'.

Any assistance you can provide is greatly appreciated.

Sincerely,
Sam

Answer
Sam,

In the US these matters are determined by state insurance regulation which allow insurers different deadlines for either accepting liablity or denying liability for claims. I an not sure what the regulation is in Australia for these matters, but suggest you contact your provincial or state regulator for insurance, unless there is a national insurance department where you can make inquires and complaints. I would file a complaint against your own insurance company if the regulations appear to have been broken.

I'm sorry I could not be of more help in this situation.

Charlie