Insurance Delays Are Common After a Crash but Texas Law Sets Deadlines. Here’s What Those Delays Mean and When They Cross the Line.
- Accept or reject the claim within 15 business days, or
- Notify you that they need more time and explain why
How Long Can an Insurance Company Delay a Claim?
After receiving all necessary documents, statements, and forms, an insurer must:
- Accept or deny the claim within
15 business days, or
- Extend the deadline (with notice) for up to
45 additional days
If payment is owed, the insurer must generally issue payment within 5 business days after agreeing to pay.
Delays beyond these timelines can trigger penalties—even if the insurer claims it was acting in good faith.
The Texas Prompt Payment of Claims Act
Texas law takes insurance delays seriously. Under the Texas Prompt Payment of Claims Act, insurers who delay payment too long may be required to pay:
- 18% interest on the claim amount
- Reasonable attorney’s fees
- Additional damages in certain situations
These penalties can apply
even when the insurer argues the delay was reasonable.
When Does a Delay Become “Bad Faith”?
Texas courts have made it clear that insurance companies owe policyholders a duty of good faith and fair dealing.
An insurer may act in bad faith if it:
- Delays payment without a reasonable basis
- Fails to properly investigate the claim
- Drags out the process without explaining the delay
- Ignores evidence supporting the claim
The Texas Supreme Court has recognized that unreasonable delays can violate this duty and expose insurers to liability beyond the value of the claim itself.
Common Reasons Insurance Companies Delay Car Accident Claims
Some delays are legitimate—but many are strategic. Common reasons include:
- Requesting the same documents multiple times
- Claiming the investigation is still “ongoing”
- Waiting for recorded statements or medical records
- Disputing liability without clear evidence
- Hoping financial pressure forces a low settlement
Not every delay is illegal—but patterns of delay often signal a problem.
What Can You Recover If an Insurer Delays Your Claim?
Depending on the facts, Texas law may allow recovery of:
- The full value of your accident claim
- Statutory interest penalties
- Attorney’s fees
- Actual damages caused by the delay
- Additional damages for knowing or intentional misconduct
Every case is different, which is why timing and documentation matter.
What Should You Do If Your Claim Is Being Delayed?
If an insurance company isn’t responding or keeps pushing your claim forward without resolution:
- Document all communications
- Keep copies of requests and responses
- Be cautious about recorded statements
- Speak with a Texas car accident attorney before the delay costs you leverage
Early legal involvement often forces insurers to take claims more seriously.
Talk to a Texas Car Accident Attorney
Insurance companies understand the law—and they know most people don’t. If your car accident claim is being delayed, an attorney can evaluate whether the insurer is violating Texas deadlines or acting in bad faith.
Our firm represents injured Texans and deals directly with insurance companies to protect our clients’ rights.
If your claim is stalled, don’t wait for the insurance company to do the right thing. Contact Wyde & Associates today to review your case and take the pressure off you.