How long does an insurance company have to pay a car accident claim?

California’s Fair Claims Settlement Practices Regulations define a claimant as a first party or a third party claimant. A third party claimant is any person asserting a claim against a person insured under a policy. Time is counted in calendar days.

Texas’s prompt payment deadlines apply to first party claims only. A first party claim is one made by an insured, a policyholder or a beneficiary named in the policy, which the insurer must pay directly to that person.

Under Washington’s claims rules, a claimant can be a first party claimant, a third party claimant, or both. A third party claimant is a person asserting a claim against someone insured under a policy of the insurer.

An insurer must acknowledge a notice of claim within 15 calendar days and begin any necessary investigation. It must also answer, within 15 calendar days, a claimant’s communication that reasonably suggests a response is expected.

After it receives proof of claim, an insurer must accept or deny the claim, in whole or in part, within 40 calendar days. If it needs more time, it must say so in writing within that period and again every 30 calendar days. An insurer that denies a third party claim, or disputes liability or damages, must do so in writing. The regulation lists exceptions.

Once an insurer accepts a claim in whole or in part and, where one is needed, receives a signed release, it must pay within 30 calendar days, with listed exceptions.

For those first party claims, the insurer has 15 days after it receives notice of the claim to acknowledge it and begin any investigation. It has 15 business days to accept or reject the claim in writing once it has all the items, statements and forms it required. It has 5 business days to pay after it gives notice that it will pay. The statute sets longer periods for some insurers and situations.

Until October 18, 2026: within ten working days after receiving notification of a claim under an individual insurance policy, the insurer must acknowledge its receipt of the notice of claim. Effective October 18, 2026: within 10 business days.

Until October 18, 2026: every insurer must complete its investigation of a claim within thirty days after notification of claim, unless the investigation cannot reasonably be completed within that time. Effective October 18, 2026: the period is 30 calendar days, and an insurer that needs more time must tell the claimant the reasons in writing and give further written notice every 30 days.

This rule covers first party claimants only. Until October 18, 2026: within fifteen working days after the insurer receives fully completed and executed proofs of loss, it must notify the first party claimant whether the claim has been accepted or denied. Effective October 18, 2026: within 30 calendar days after the insurer receives a notification of claim.

Unless a statute, rule or contract sets another time, an insurer’s procedures must be designed to deliver payment of a settled claim within 15 business days after the insurer or its attorney receives properly executed releases or other settlement documents. The period is the same before and after October 18, 2026.

Except where a claim has been settled by payment, an insurer must give the claimant written notice of any statute of limitation or other time period requirement it may rely on to deny a claim. The notice is due not less than 60 days before the expiration date, or immediately if the insurer first receives notice of the claim within that 60 days. For a first party claimant in an uninsured motorist matter it is due at least 30 days before. The rule does not apply to a claimant represented by counsel on the claim matter.

The California Supreme Court held that section 790.03(h) does not create a private civil cause of action against an insurer. The person who sued in that case had been injured by an insured driver. The court pointed to administrative remedies through the Insurance Commissioner.

The Texas statute on unfair settlement practices is written for a claim by an insured or beneficiary. It says that it does not provide a cause of action to a third party asserting a claim against an insured covered under a liability insurance policy.

The Texas Supreme Court held, under the earlier version of the statute, that a third party claimant has no direct cause of action against an insurer for unfair claim settlement practices.

Until October 18, 2026: an insurer may not continue negotiating a settlement directly with a claimant who is neither an attorney nor represented by one, until the claimant’s rights may be affected by a statute of limitations or a policy or contract time limit, without giving written notice that the time limit may be expiring. The notice is due 30 days before the date for a first party claimant and 60 days before it for a third party claimant. Effective October 18, 2026: the same rule, counted in 30 calendar days and 60 calendar days.

The Washington Supreme Court held that third party claimants may not sue an insurance company directly for an alleged breach of the duty of good faith under a liability policy. It said that enforcing the claims rules on behalf of third parties is for the Insurance Commissioner.

Outside life, marine and fire insurance, notice of an accident, injury or death may be given to the insurer within 20 days after the event. A policy cannot require notice in a shorter time.

A contract term that requires a claimant to give notice of a claim for damages as a condition of the right to sue on the contract is not valid unless it is reasonable. A term that requires notice in less than 90 days is void.

Except where the policy specifies a time limit, an insurer may not make statements, written or otherwise, that require a claimant to give written notice of loss or proof of loss within a specified time and that seek to relieve the company of its obligations if the time limit is not met, unless the failure to comply prejudices the insurer’s rights. The sentence reads the same before and after the October 18, 2026 amendments.

Generally two years for an injury caused by someone else’s wrongful act or carelessness.

Two years from the day the claim arises. For most crashes and falls that is the day of the injury.

Three years for most injury claims.

The California Department of Insurance’s help page lists “File a Complaint” and says a person can ask a question or file a complaint.

The Texas Department of Insurance says it can help with an insurance complaint against companies, agents and adjusters.

The Washington Office of the Insurance Commissioner says a person can file a complaint against an insurance agent or an insurance company, and can check the status of an existing complaint.