8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Car insurance companies in California have up to 40 days to investigate a claim. Insurers have a maximum of 85 days to complete the claims process, according to state law, and companies can request an extension.
Insurers can resolve some claims much quicker than the mandated timeline. But it might take the entire 85 days or longer if it’s complex. The good news is you can help move along the process by staying in contact with your insurer and providing detailed information. You can file a complaint with the California Department of Insurance if you think an insurer is unfairly denying your claim.[1]
Here’s what you need to know about car insurance claims in California.
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Time limits for auto insurance investigations in California
California laws establish time frames for each step of the claims process. Car insurance companies have 40 days to investigate a claim. But the process can be much shorter if it’s a simple claim with your insurer, or it can be longer if it’s a claim with another driver’s insurance company.
Here’s how each stage of the claims process works.
Initial acknowledgement period
The first and shortest stage of the claims process is the initial acknowledgment. After you file a claim, your insurer acknowledges it, starts an investigation, and provides the necessary forms within 15 days of receiving it. The insurer gathers information about the type of claim and whether it involves property damage, bodily injury, or a natural disaster.
Investigation period
Once the insurer has the necessary information, the investigation process begins. The insurance company works to determine the claim’s legitimacy, who’s at fault, and the extent of the damages.
Decision deadline
The insurer must accept or deny the claim within 40 days of receiving it. The company needs to decide based on legitimate evidence, including police reports, proof of medical treatment, and repair estimates.
Payment deadline
If the insurer accepts your claim, you must receive payment within 30 days of the claim settlement. Once you receive payment, the claim is closed.
Factors that affect claim processing times
Even though California law sets a timeline for claims, it allows insurers to extend deadlines when necessary.
Here’s why your insurance company might take longer to complete a claim.
Claim complexity: Insurance companies can take longer to investigate complex claims. For example, resolving a claim can take extra time when multiple drivers are at fault and share the blame for a car accident.
Evidence and documentation availability: Insurance companies might need more time if the claim involves a police report or repair estimate since the evidence takes time to gather.
Your cooperation as a policyholder: If you don’t respond to phone calls, messages, or requests for documentation, it can take longer to resolve the claim. Respond quickly to speed up the process.
When insurers can request an extension
It might take longer than 40 days if it’s a complicated claim with an insurance adjuster or the other driver isn’t cooperating. Insurance companies must notify you in writing if it takes longer, and you should receive additional notifications every 30 days for as long as it takes.[2]
For example, imagine you get in a car accident with another driver while backing out from a parking spot. The other driver had the right of way, but he was speeding. Even though you would typically be at fault for the accident, your insurer must investigate more due to the speeding issue. Your insurance company sends a letter to notify you that it’ll take longer than 40 days to complete the claim.
Your rights during delays
California drivers are entitled to a quick claims process of 85 days or less. You can contact the California Department of Insurance (CDI) for help if there’s an unreasonable delay. The department exists to help consumers and resolve complaints.
You can call, write, or visit the CDI.
Phone: 1 (800) 927-4357
Write or visit: California Department of Insurance, 300 South Spring St., South Tower, Los Angeles, CA 90013
What to do if your insurance company misses deadlines
California has multiple laws to protect consumers, and insurance companies are motivated to comply with the regulations to avoid expensive penalties from the state. But even with penalties, insurers can still miss deadlines. Here’s what to do if that happens.
Contact the insurance company
Call your insurer or agent to ask about the claim and request an update. You might be able to resolve the issue on the phone.
Document the issue
Document the delay, even if you find a solution. Gather emails and letters from your insurer.
File a complaint
If you need to escalate the situation or are experiencing unfair treatment, contact the California Department of Insurance. The consumer hotline is 1 (800) 927-4357.
Contact an attorney
Some injury lawyers specialize in insurance cases, and you can contact them if you need a legal opinion or want to file a lawsuit for compensation.
What to do if an insurance company denies your claim in California
Even if an insurer sticks to the timeline, the company might deny your claim. But you can take certain steps if you want to fight the decision.
Review the letter. Read the decision letter from the insurance company, and make sure you understand the reasoning.
File an appeal. You can file an appeal with the insurance company to request a review of the decision. Gather information about why you disagree with the appeal and submit it to your insurer. Most companies have a specific department that handles appeals.
Contact the Department of Insurance. The CDI is a state agency that can help resolve consumer complaints. Call 1 (800) 927-4357 for more information.
Consult with a lawyer. Insurance companies must act in good faith. If you think an insurer is acting in bad faith, you can contact an insurance lawyer to take action.
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Tips to make the claims process go as smoothly as possible
You can’t control the outcome when you file a claim, but cooperating with the investigation can make it go faster. This ensures that the insurance company can’t say you failed to assist in the investigation.
You can also take the following steps to make the process go smoothly:
Provide complete, accurate, and detailed information. Respond to requests for information as thoroughly and quickly as possible.
Keep detailed records of communications. Create a digital or physical folder to store communication records, including call logs, names, emails, and letters.
Follow up with the insurance company. Stay in contact with the insurance company and request updates.
Claims investigation in California FAQs
Insurance companies must follow state rules and regulations when handling claims. Here’s some additional information about how the process works.
How long do insurance companies have to settle a claim in California?
California insurance companies have to settle a claim within 85 calendar days, including 15 days to acknowledge the claim, 40 days to investigate it, and 30 days to make payment. Some claims might take less time, while others could take more.
How long can an insurer delay a claim in California?
Insurance companies in California can delay claims until they reach a decision or provide the driver with notice of legal action. The insurer must provide an updated notification about the delay every 30 days.
Do insurance companies have a time limit for processing claims?
Insurance companies must settle claims within 85 days, but it can take longer if necessary. Insurers must notify drivers in writing about delays and provide a valid reason.
Can you sue an insurance company in California for taking too long to process a claim?
You can consult a lawyer to sue an insurance company in California for taking too long to process a claim. You can also contact the California Department of Insurance to get help or file a complaint.
Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.
Taylor has been a contributor at Insurify since February 2023.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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