Every plaintiff wants a speedy resolution to his or her personal injury case. It may take several weeks or months, however, for an insurance company to investigate your accident and make a decision on your claim. Certain factors can speed up or slow down an insurance company’s response time to your initial demand letter. This is why it’s important to contact a car accident lawyer in San Antonio for legal guidance.
What Is the Insurance Demand Letter?
The insurance demand letter is the written statement you submit to the insurance provider of the person or party you believe caused your accident. If you get into a car accident, for example, Texas’s fault law holds the driver who caused the collision financially responsible for your losses. You will file an injury claim with that driver’s insurance carrier for financial benefits. One of the first stages of your claim is submitting an insurance demand letter.
The demand letter should clearly and concisely describe your accident and injury diagnosis, explain why you believe the defendant is legally responsible, and include your demand. This is the amount of money you require to release the defendant from liability. Your personal injury attorney in San Antonio can help you draft a strong and effective insurance demand letter. After you submit the letter to the insurance company, you will have to wait for an answer.
Texas Law Says 15 Days
Most states have laws that require insurance companies to act on claims within a certain amount of time. In Texas, an insurance company has to respond to a submitted claim no later than the 15th business day after receiving notice of the claim, according to Texas Revised Statutes Section 542.055.
State law requires insurers to acknowledge the receipt of the claim, request necessary information and statements from the claimant, and begin an investigation within 15 days of receiving the claim or demand letter. The insurance company may have 30 business days, however, if it is an eligible surplus lines insurer.
Once the insurance company receives all items and information necessary to investigate the claim, it has no later than the 15th day after the receipt of these items to notify the claimant in writing of the acceptance or rejection of the claim. It is possible for an insurance company to extend the investigation period to 45 days with an acceptable reason. Finally, an insurer has five days from accepting a claim to send the claimant a settlement check.
Average Settlement Timelines
Settlement timelines in Texas can vary substantially. Although most claimants receive responses to their insurance demand letters within just a few weeks, others may take months for claims processing. There is no average settlement time; an attorney can help you estimate the timeframe of your case based on its unique elements.
If your case has any complex aspects or challenges, expect a longer insurance settlement process. The insurance company may not respond to your demand letter for several weeks if it is having trouble processing or investigating your claim. If you have a simple case, however, the insurance company should not take an unnecessary amount of time to respond with an acceptance or denial.
Factors That Could Impact Your Settlement Timeline
Multiple factors can influence how long an insurance claim takes in Texas. Understanding what elements can alter a settlement timeline can help you streamline the process as much as possible from your side of the case.Â
The factors that may affect how long a response takes include:
- How long it takes you to reach your point of maximum medical improvement
- Whether there is a liability dispute
- The comparative negligence defense or other arguments
- The number of defendants involved
- Whether you made any mistakes on your original forms
- The processes at the insurance company
- The availability of evidence
- The length of the discovery phase
- Whether a lawsuit has to be filed
- Court scheduling and trial delays
Insurance claims involving severe injuries typically take longer to settle than those with minor injuries. This is because the injuries require long-term medical care; the victim’s condition may need to be monitored for the insurer and victim to understand the long-term effects.
One of the main determining factors is whether the claim settles or the case has to go to court. A personal injury trial is a much lengthier legal process than an insurance settlement. While a settlement can often be reached within around three to six months, a trial can take one year or longer.
How Do I Get a Faster Response to My Demand Letter?
While you cannot control how quickly an insurance company decides to handle your claim, you can take certain steps to speed up the process as much as possible. Make it easier for the insurance provider to process your claim with the following actions:Â
- Avoid mistakes. Don’t delay medical treatment, ignore the insurance company’s filing rules or make mistakes on claims paperwork. These errors can delay your claim.
- Be clear. Be clear and complete with the terms of your demand letter. Include all relevant information and documentation upfront to prevent issues.
- Double-check the destination. Make sure you send your demand letter to the correct address to avoid delays involved with mailing your letter. Use certified mail to get a return receipt.
- Follow up. Put a clear deadline for a response in your demand letter. Don’t be afraid to follow up with the insurance provider if you haven’t heard anything back after 15 days.
- Use an attorney. Work with an attorney who can send your demand letter for you. Being backed by legal representation shows the insurance company you’re serious and have the means to bring the case to trial, if necessary. This can incentivize the insurer to respond promptly.
While it’s normal to want to get through the insurance claims process as quickly as possible, it’s also important to recognize that a fair settlement may take time. Do not jump to accept the very first settlement offer. Instead, be patient, reach your point of maximum medical improvement and work with an attorney to get the most out of your claim.
What Are the Potential Responses to a Demand Letter?Â
An insurance company could give various responses to a demand letter. If it accepts liability for your losses, it may respond with a settlement offer: a sum of money offered in exchange for you releasing it of any further liability for the accident and injury. If it needs further information to process your claim, it may respond with a request for more documents.
 Another potential response is a claim denial. If an insurer rejects your claim, it must give you its reason for doing so in writing. Review the denial letter carefully and compare the reason with the terms of the policy. Then, bring your denial to a personal injury attorney in San Antonio to discuss your options.
What If an Insurance Company Unnecessarily Delays a Claim?
If you believe an insurance company does not have a valid reason to delay its response to your demand letter and is acting in bad faith in failing to respond promptly to your claim, consult with a lawyer in San Antonio for assistance. A personal injury attorney can help you file a bad-faith claim against the insurer in pursuit of additional compensation for the insurance company’s wrongdoing. Contact us today.