How Long Does an Insurance Company Have to Settle a Claim in Texas?

How quickly insurance companies pay claims depends on which state you file your claim in. For instance, the state of Texas requires a claim acknowledgment within 15 days of a claim being filed. Approval or denial must be made within 15 days of all required documentation being received, but the adjuster can extend it to 45 days if they are able to give a good reason. Once your claim is approved, they have just 5 business days to issue a check. However, while this legal timeline applies to processing the claim, reaching an actual settlement by agreeing on the payout amount, especially for personal injury cases, often takes much longer.

What Is the Typical Timeline of a Texas Claim?

In Texas, most straightforward personal injury cases settle out of court within six to 18 months. This duration heavily depends on the severity of your injuries, fault disputes, and the speed of medical treatment. When your insurance claim involves an injury, the timeline roughly follows these phases:

• Medical Treatment and Recovery: You should wait until you reach Maximum Medical Improvement (MMI) to settle, so you understand the full cost of your medical care.
• Investigation and Demand: Your attorney will gather police reports, medical records, and bills to draft a settlement demand letter over the course of one to three months.
• Negotiation and Settlement Discussions: The insurance company reviews the demand letter and settles most claims between three and six months.
• Litigation: If negotiations fail, you would move to file a lawsuit, extending the claim settlement timeline to one or two years.

How to Speed Up the Claims Process

You can’t control the insurance companies or the laws, but if you live in Texas you can take steps to speed the claims process along.

• Know your policy
• Document your claim carefully, from the very beginning
• Submit a complete “proof of loss” form with as much detail as you can give
• Contact a personal injury lawyer who can help you understand your rights and options

Factors That Can Slow Down a Settlement Claim

Settlement delays are primarily driven by a few common factors. Understanding these roadblocks can help you navigate or expedite the claims process, including:

• Ongoing medical treatment to prevent undervaluing your claim.
• Disputes over fault under Texas’s modified comparative fault or 51 percent rule.
• Insurance delay tactics, including excessive documentation requests, frequently swapping adjusters, and delaying their investigation.
• Missing or incomplete documentation, such as official crash reports, medical bills, or proof of lost wages.
• Complex or multiple claims, like multi-vehicle pile-ups or claims involving commercial trucking companies and drivers.
• Court backlogs based on docket density and the potentially lengthy discovery phase.

What If the Insurance Company Doesn’t Pay What They Promised?

When the insurance company fails to meet statutory guidelines or pay the settlement you agreed to, your only option may be to sue under Texas Insurance Code Chapter 542 (TPPCA). The Texas legislature passed this law to protect policyholders like you from insurance company delays, underpayments, and bad faith tactics. It imposes strict, legally binding deadlines for processing and paying insurance claims.

The TPPCA is a strict liability statute. This means that you do not need to prove an insurer acted in bad faith. It is enough to show they missed statutory deadlines. If an insurer fails to comply without a valid reason, they are penalized with statutory interest. Under this legal policy, the insurer must pay an 18 percent annual penalty interest on the delayed payments. They are also typically required to cover the policyholder’s reasonable legal fees to recover the owed funds.

Let Us Help You Speed Up Your Insurance Company Settlement Claim

If you are dealing with unpaid insurance money, you need to reach out to our law office for assistance right away. We are premier accident lawyers in Texas, and because we are available 24/7, we may be able to speak with you today. But before you do, learn more about dealing with Texas insurance companies after an accident, and view our car accident page right now.

At Felix Gonzalez Law Firm, we’ll ensure that your rights are protected and your settlement paid promptly and fairly. Time is of the essence, and you should not wait. Call us today for a free consultation to learn more about injury claim settlement timeframes and how we can guide you throughout the process.