The most common reason for an insurer's delay is the adjuster's caseload. An adjuster is likely to have dozens of claims to handle at once. Many decisions made by insurers require approval from one or more superiors, who will also have to review many other claims. As the timeline illustrates, the average response time for insurance companies that handle most claims is approximately two months.
Every state law has established filing times for auto insurance claims. This is not the same as the time required to reach an agreement or pay a claim. This is just the amount of time you have to file the original paperwork. As always, the faster you file your application, the more likely it is that your claim will be processed quickly.
No, an insurance company also makes use of a variety of other financial vehicles, such as %26 bond stocks, to make money from its existing cash flow. You can't quickly process your car insurance claim when you don't have the money to cover your deductible. There could be a simple explanation for the lack of response, such as that the adjuster is backed up with work or has gone on vacation, or that the demand letter has been lost in the confusion of the insurance company. There are several situations where your car insurance company won't give you money after a claim.
However, if you have a lease or finance your car, the insurance company is likely to make the claim to you and the lessee or pledge. Your insurance coverage would automatically extend to you, but remember that your deductibles will apply if you damage the vehicle. Unfortunately, this encourages some insurance agents to engage in bad faith practices, the most common of which are delay tactics. A contested claim may require you or your lawyer to provide additional evidence to an insurance company of your client's liability or the extent of their damages.
If you think the insurance adjuster is taking too long to respond to your demand letter, your only practical option to speed things up is to contact them on a regular basis until they respond. Most states protect consumers by encouraging insurance companies to handle accident claims. We will handle all interactions with the insurance company of the responsible party in your case, including negotiations. Anyone who suspects bad faith insurance practices by an insurer in Arizona should consult with an Arizona insurance claims attorney as soon as possible to have the best chance of recovery.
If your state specifies a time limit by which insurers must resolve claims, make a note of the deadline. If you think you deserve a higher payment, your best option is to consult an attorney who can speak to the insurer on your behalf.