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

how long does an insurance company have to pay a claim in texas
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Do you find yourself waiting by the phone, desperate to hear back about the insurance claim you filed? Have you begun to wonder, “How long does an insurance company have to pay a claim in Texas?” In these situations, many people have no idea how to proceed. Processes involving insurance claims and the associated companies have the potential to get very complicated very quickly. That’s why you need a highly experienced Texas insurance and contract claims lawyer on your side. 

At Reich & Binstock in Houston, we use our nearly 30 years of legal experience to fight back against insurance companies on your behalf. If necessary, we don’t hesitate to file bad faith insurance claims. Why? Because you deserve your claim. Just because of the tricks used by insurance companies, you shouldn’t have to worry about getting what you’re owed. As soon as you get in touch with us, we’ll start using our experience to your advantage. For your free consultation with our highly skilled attorneys, call 713-622-7271 today, or complete our online intake form to submit your free case evaluation.

How Long After an Accident Can You File an Insurance Claim?

In Texas, the statute of limitations for filing insurance claims after car accidents is the same for personal injury claims in Texas, which is 2 years. This 2 year clock starts counting down on the day of your accident. However, we always recommend speaking with an attorney before you decide whether or not to pursue your claim. Even if you believe that your statute of limitations has expired, you may still have time.

How Long Does an Insurance Company Have to Respond to a Claim?

Insurance companies must respond to your claim. Texas law requires that they respond to any and all filed claims within 15 days of receiving notice of the claim. Within this 15 day period, insurers must do the following.

  • Acknowledge that they received the claim.
  • Begin their investigation into the claim.
  • Request all relevant information from the claimant in order to help with the claim’s investigation.

If the insurance company fails to acknowledge the claim, they violate Texas’s Insurance Code. Along with their acknowledgement of the claim, they must notify you of whether or not they accepted the claim. In some cases, insurers extend their 15 day response period to 45 days, but they must have the appropriate basis. Should the insurance company reject your claim, they must provide reasoning for their rejection. 

How Long Does an Insurance Company Have to Investigate a Claim?

After the 15 day response period passes, the insurance company has another 15 days to investigate your claim. During this time, they must either accept or reject the claim, and notify you of their decision. Sometimes, insurance companies request extensions. If they have good cause for the extension, they can have up to 45 days for their investigation.

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

Texas requires insurance companies to make their final settlements by the end of 5 business days after the approval of the claim. Various factors affect how long it takes insurance companies to settle claims.

  • Claims associated with serious accidents or multiple injuries naturally take longer to settle.
  • If poor communication between the driver and the insurance company exists, this slows down the process significantly.
  • When the insurance company conducts their investigation, they will ask for appropriate information from you. If you take too long to provide this information, it will slow down the process.

Texas law prohibits insurance companies from slowing down the process of payment. If your insurer fails to pay your claim after 5 business days pass after the approval, you might be entitled to damages. If you believe your insurance company is intentionally trying to slow down or get out of paying your claim, you need the Houston insurance claim attorneys with Reich & Binstock.

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

Many insurance companies seek to maximize their own profits by minimizing what they pay you. Therefore, they won’t always want to pay you what you deserve. Even if they initially deny your claim, an experienced attorney will tell you that you don’t have to take no for an answer. Below, we include the steps you need to take in order to increase your chances of getting paid.

  • Once the insurance company denies your claim, make sure that their reason for denial matches up with what your insurance policy states. 
  • If you believe that your insurer falsely denied your claim, you should contact their claims department. Ask them to provide you with a deeper explanation of your denial. If their answers to your questions are not satisfactory, then ask to speak to their supervisor.
  • After all this time, if you are still not satisfied with the information you receive, file a formal appeal for your claim. Usually, they want the appeal in writing, and you will need to provide supporting documentation for your case. 

What to Do About Insurance Bad Faith?

There are multiple ways in which insurance companies act in bad faith. In these cases, you can pursue a bad faith lawsuit. Alongside your lawyer, you can file a bad faith claim based on the details of your case. Basically, the goal is to make you, the policyholder, whole again. This opens the door for not only recovering the damages you suffered, but also leveling punitive damages onto the insurance company. 

Find Out How We Can Help

At Reich & Binstock, not only do we handle personal injury cases, but we also handle insurance and contract claims in Houston. Many of our clients experience bad faith insurance practices, and we want to represent them. The unfortunate truth is that, in most cases, insurance companies care more about making a profit than providing fair, timely settlements and claim payments to their customers. That’s why we’ve dedicated a large portion of our practice to fighting against these bad practices in a court of law. Don’t settle for being cheated out of a claim that you know is legitimate. With our 30 years of experience on our side, we’ll go to bat for our clients who suffered damages and deserve compensation. To schedule your free consultation today, call our office at 713-622-7271.

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