Can you sue an insurance company for taking too long?
Asked by: Marian Hermiston II | Last update: June 5, 2025Score: 4.7/5 (41 votes)
Can you sue insurance companies for taking too long?
If an insurance company is taking too long to resolve your claim or if they are denying your claim without a valid reason, you may have grounds for a lawsuit.
What can I do if my claim is taking too long?
Ask them straight up what is taking so long. If the answer isn't forthcoming ask them what you can do to facilitate the claim. Then provide them with anything reasonable for which they ask. Promptly. Ask the adjuster what they are doing to see the claim is taken care of.
Do insurance companies have a time limit?
All states except South Carolina have rules requiring insurers to pay or deny claims within a certain time frame, usually 30, 45, or 60 days.
How likely is an insurance company to sue you?
While subrogation allows insurance providers to pursue third parties, an insurer usually cannot sue their policyholders. However, there are certain situations where an insurer may take legal action against its policyholder.
What To Expect When You Sue An Insurance Company
When should you sue an insurance company?
You may be able to sue your insurance company for bad faith if they intentionally neglect to perform the duties necessary according to your policy. If the insurance company knows that the claim is valid but they deny it anyway, you may be able to sue for bad faith.
Do you have to have a lawyer to sue an insurance company?
If you've found yourself in this situation and are considering legal action, you might be wondering if you can sue an insurance company without hiring a lawyer. It is definitely possible, but it's essential to understand the potential challenges and complexities involved.
How long does an insurance company have to pay a claim?
Insurers in California have 40 days to either accept or deny a claim. However, insurers can request additional time, but must notify the policyholder every 30 days about the status of their claim. Once insurers accept a claim and agree to a payout, payment must be issued no more than 30 days later.
What is the maximum time period an insured may bring legal action against an insurer?
Most insurance policies have a provision labeled “Suit Against Us” that says you have one year from the date of a loss to file a lawsuit relating to a claim under the policy.
How long do most states allow an insurance company to delay?
The amount of time that most states allow an insurance company to delay the payment of a cash surrender under the Delayed Payment provision can vary. However, a common timeframe is around 30 days.
How to escalate an insurance claim?
Contact your state insurance department.
Explain the reasons for the disagreement to a consumer services representative at the department. While they can't resolve or otherwise handle every complaint, the department will collect the information and alert you if your case is chosen to be individually reviewed.
Why is my insurance claim taking so long?
Your insurance company will investigate who's responsible for the accident, as well as whether there's coverage for the injuries, damage, or other loss you filed the claim for. A coverage investigation can take just as long or even longer than an investigation to determine liability.
Can I sue my insurance company for emotional distress?
Yes, you can sue for emotional distress under the common law standard, but it can be hard to prove. This is because you must show that the result of your claim denial caused you pain and suffering or emotional distress. This intangible loss can be more difficult to prove than, say, the cost of medical bills.
Can I sue an insurance company for wasting my time?
The law requires insurance companies to acknowledge receipt of a claim within 15 days after they receive it. They must communicate their decision on the claim within 15 business days after receiving all necessary information related to the claim. If they fail to do so, policyholders have the right to sue for delay.
Why would someone sue an insurance company?
Third-Party Lawsuits
This proposition allows an individual or a business to file a third-party lawsuit against an insurance company for unfair claims practices in handling liability claims. (Liability insurance provides financial protection to individuals and businesses for harm that occurs to others.)
Can I sue my insurance for ignoring me?
Yes, you can pursue litigation when ignored by an insurer. Insurance providers are legally required to act in good faith. That means, they must handle client cases reasonably and fairly. You can press bad faith charges against them if they don't.
How long must an insured wait days to bring legal action?
The insured must wait at least 60 days following the filing of a proof of loss before pursuing any legal action against the insurer.
What is the maximum amount of time an insurance policy may be backdated?
Most insurance companies allow you to backdate your policy a maximum of six months or up to your last half birthday, depending on which is the shortest amount of time.
How many days must insured wait to take legal action?
60 days. The insured typically must wait 60 days after submitting proof of loss to take legal action against a health insurer if their claim is refused. The precise timeframe can vary, so it is important to check the insurance policy and local laws.
When an insurance company won't pay?
If your health insurer refuses to pay a claim or ends your coverage, you have the right to appeal the company's decision and have it reviewed by a third party. You can ask that your insurance company reconsider its decision. Insurers have to tell you why they've denied your claim or ended your coverage.
How long does it take to sue an insurance company?
If handled quickly, a civil case may be resolved in one year or less. A two-year lifespan is not uncommon for a civil injury case against a single defendant or against an insurance company. Sometimes lawsuits in civil court may last a few years if delays occur.
What is the time limit for claim settlement?
After completing an investigation, an insurance company is required to settle a claim within a set period of time. This period varies by state and type of claim, but typically ranges from 30-60 days.
Can you sue an insurance company for not paying enough?
If you're not satisfied with the outcome of your dispute, you have the right to sue the insurance company in a court of law. You can use these resources to find legal help. You can also ask for alternative dispute resolution, which uses mediation with a neutral third party to settle disputes outside court.
How do I file a lawsuit against a company without a lawyer?
You start a lawsuit by filing a complaint. In some circumstances, you file a petition or a motion. The court has several complaint forms that you may use in drafting your complaint. The forms are available online and at the Pro Se Intake Unit.
What is it called when an insurance company refuses to pay a claim?
If your insurance company unreasonably delays or denies your claim, you may have a claim for bad faith.