After an auto accident, you have the right to expect that the insurance provider will pay out your claim promptly. In fact, the law affords you this right.
The California Department of Insurance explains that the Fair Claims Settlement Practices Regulations give you specific rights to help ensure that you do not suffer needless delays or other issues when it comes to a payout on an insurance claim and holds insurers responsible for ensuring timely delivery of payments.
Rights to information
Your insurer should provide you with clear information about your policy. This includes giving you information about time limits and payouts. If you contact the insurer for any reason, it should provide you with a response within 15 days.
Rights when making a claim
When you make a claim and provide proof to back it up, your insurer has to make a decision on it within 40 days. To avoid delays, you need to make sure that you provide all requested information and documentation, such as police reports and repair estimates.
The insurance company must acknowledge the receipt of your claim and begin working on it within 15 days of receiving it from you. Even if you do not provide all the required information or even make a proper filing, the company has 15 days to begin from the time you give them notice you will make or are making a claim.
Rights for claim payout
Upon accepting your claim, your insurer has time to investigate but should pay it as soon as possible. Once there is a settlement, the company must pay within 30 days from that date.