How Long Does an Insurance Company Have to Investigate an Auto Claim in Texas?

If you submit an auto claim to an insurance company in Texas, the process usually takes about 45 days. But it all depends on the complexity of your claim, the evidence and documentation you provide, and how you cooperate as a policyholder.

Keep reading to learn about the obligations of insurance companies in Texas, how you can expedite the claims process, and your options if you believe an insurer is unfairly denying your claim.

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Time limits for auto insurance investigations in Texas

Texas law establishes time frames for each step of the insurance claims process. Keep in mind that these periods only apply when you’ve filed a claim with your insurance company. If you have to file a claim against another driver’s insurance company, the rules are different because you don’t have an insurance contract with the other driver’s insurer.

Here’s an overview of each time frame in the car insurance investigation process in Texas.^[1] [2]

Initial acknowledgement period

The first step requires you to file an insurance claim with your insurer. In most cases, you have up to the statute of limitations, which is two years from the accident date, to do so. But it’s a good idea to file your claim as soon as possible.

Most insurance companies will let you file a claim online, by phone, or through their mobile app. Be sure to include all details related to the accident and attach evidence of the damage in the form of police reports, medical records, photos, and videos. You should also keep receipts for any expenses you incur as a result of the accident.

Investigation period

After you file an insurance claim, the insurance company typically has around 15 days to acknowledge receiving your claim. If it needs additional information for the claims adjuster, it’ll need to request it during this time.

Make yourself available so that you can answer the adjuster’s questions promptly. You might also want to get the claims adjuster’s contact information and document all your conversations with them.

Decision deadline

Once the insurance adjuster has everything they need, they have another 15 days to approve or deny your claim. Additionally, if the adjuster denies your claim, you should receive a written explanation with reasons for the denial.

Payment deadline

Upon approval, the insurance company must pay out your claim within five business days. Remember that your insurer will subtract your deductible from your payout. For example, if your car goes to an auto body shop, you’ll be responsible for paying your deductible, and then your insurer will pay out the rest of your approved claim.

If the insurer fails to compensate you within five days, it can face legal consequences.

Factors that affect claims processing times

If an insurance company requires more time to review your claim, it may extend the 15-day deadline up to 45 days. Note that if your insurer requests an extension, it must inform you why it needs it.^[1]

The factors that can affect how long it takes for an insurer to process your claim include:

• Claim complexity: The more complicated your claim, the longer it will take. For example, if it involves multiple parties or legal disputes, the insurance company will need more time to investigate it and decide whether to approve it.

• Evidence and documentation availability: Ideally, you’d have enough photos, videos, witness statements, and other evidence to prove your case. If not, the insurer may request additional information and extend the investigation process.

• Your cooperation as a policyholder: It’s up to you to file your claim right away and be there to answer questions or provide more information when the insurer or adjuster asks for it. If you don’t cooperate, your claim will take longer, and Texas insurers now have an obligation to drop policyholders who don’t cooperate with claims investigations.

When insurers can request an extension

In some situations, insurance companies can extend the 15-day deadline by 45 days. If your claim results from a natural disaster or weather catastrophe like a fire or tornado, your insurer may have another 45 days to decide and an additional 15 days to pay you.^[3]

An insurer might opt for an extension if your auto insurance claim is extremely complex or it has a large number of claims and simply can’t keep up. Regardless, it’s the insurer’s responsibility to notify you of the extension and explain its reason.

Your rights during delays

If your insurance company delays your claim, you can contact it for an explanation and updates. You can also contact an attorney for a free consultation if you believe the insurer is engaging in bad faith practices and mistreating you. A legal team with extensive experience can review your insurance policy, help you understand your options, and recommend the ideal next steps for your claim.

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What to do if your insurance company misses deadlines

Fortunately, you have resources to turn to if your insurer has failed to meet the deadlines associated with your claim. You can contact the insurance company directly and speak to a supervisor to determine what’s going on and what you can expect going forward.

Other resources that may be helpful include consumer support groups like the National Association of Insurance Commissioners and the National Committee of Insurance Legislators. It might also make sense to consult an experienced personal injury attorney for support, depending on the scenario.

What to do if an insurance company denies your claim

If an insurance company denies your claim for no valid reason, you can file a complaint with the Texas Department of Insurance and appeal the decision. This is an option regardless of whether it’s your own insurer or the at-fault driver’s insurance company.

You may file the complaint online through the Texas Attorney General’s Consumer Complaint Portal and call the Help Line at 1 (800) 252-3439 if you need assistance or have any questions. When you go through the process, be prepared to share personal information as well as details about your case.^[4]

Tips to make the claims process go as smoothly as possible

To ensure the insurance company doesn’t blame you for delays or denials, be as cooperative as possible during the claims process. Several other tips that may help reduce the risk of roadblocks include:

• Provide complete, accurate, and detailed information. When it comes to insurance claims, knowledge is power. That’s why providing as many details about your case is in your best interest. The more information you can share with the insurance company, the better.

• Keep detailed records of communications with the insurer. Whenever you speak to an adjuster or another representative, jot down what they said. A detailed record of your communications can help avoid confusion and potentially support your case in the event of a denial.

• Follow up with the insurance company. Don’t be afraid to be proactive and reach out to the insurer and claims adjuster throughout the entire process. It’s your right to ask questions and understand where they’re at with your case.

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