Say you're in a serious car accident and end up in the hospital for a week to treat your injuries. Will your treatment and recovery time impact the insurance claim process?
This guide aims to answer the question, "How long do I have to file an insurance claim in Texas?" The team at McLaurin Law, PLLC, shares insights for anyone curious about the car accident claim process in the Lone Star State.
Why Filing Time Limits Matter
If you're hurt in a car crash or workplace accident, you'll have a limited personal injury claim period known as the statute of limitations. Injured parties have a grace period where they can seek medical treatment, gather evidence supporting their claim, and pursue compensation. However, if you wait until after the statute of limitations expires, you lose the opportunity to seek compensation.
Setting a filing deadline is important because it encourages claimants to be proactive after an accident. Legal professionals recommend filing accident claims as there appears to be an impasse with the insurance carrier so that the details of the incident remain fresh.
How Long Do I Have To File a Lawsuit?
Exactly how long do I have to file an insurance claim in Texas? The answer depends on your unique insurance provider and policy. Companies generally expect claimants to promptly notify them of an accident and begin the claims process.
For example, if a tree falls on your roof during a storm, your insurer may require you to notify them within a certain period of time. For a car accident claim, your auto insurer may ask for notice within 30 days or as soon as reasonably possible. Check your policy's specific requirements.
When dealing with liability claims where other parties are at fault, you'll usually have up to two years from the date of the incident to file a personal injury or property damage claim. In other instances, where, for example, your insurer denies your claim in bad faith or won't cover the full extent of your losses, you will likewise be limited to two years to file a lawsuit, depending on the particular insurance policy, the type of claims, and circumstances of the situation..
Understanding the Insurance Settlement Timeframe and Possible Consequences for Stalling
As noted above, under Texas law, you generally have two years from the date of the incident to file a lawsuit related to a denied or unpaid insurance claim. However, this statute of limitations is separate from the timelines that insurance companies must follow when handling a claim.
Under Chapter 542 of the Texas Insurance Code, also known as the Prompt Payment of Claims Act, insurers are required to meet strict deadlines once a claim is filed. These deadlines include:
1. Acknowledging and Beginning Investigation – Within 15 Calendar Days
Once you notify your insurer of a claim, they must:
- Acknowledge receipt of the claim,
- Begin an investigation,
- And request any necessary information from you.
This must occur within 15 calendar days of receiving notice of the claim. (Note: For certain surplus lines or under specific catastrophe-related delays, this period may be extended to 30 days.)
2. Accepting or Rejecting the Claim – Within 15 Business Days
After receiving all necessary information to evaluate the claim, the insurer must:
- Approve or deny the claim, in writing, within 15 business days.
If the insurer cannot make a decision within that period, they must provide a written explanation and may extend the deadline by an additional 45 days under certain circumstances.
3. Paying the Claim – Within 5 Business Days
If the claim is approved, the insurer must issue payment within 5 business days of notifying you of the decision. Delays beyond this timeframe can result in statutory interest penalties and attorney’s fees if the insurer is found to be noncompliant.
Consult a Knowledgeable Lawyer About Your Insurance Claim
How long do I have to file an insurance claim in Texas? What happens if I don't meet the insurance claim deadline? Does the Texas statute of limitations change for different types of cases?
At McLaurin Law, PLLC, we can answer these questions and more. Turn to our legal professionals if you wish to know more about your rights in this situation and how to file a claim following an accident. Contact our firm online or call (713) 322-5523 to request a free consultation.
