Texas Auto Insurance Claims: Understanding The Filing Timeline

If you've been in a car accident in Texas, you'll want to know how long you have to file an auto insurance claim. The short answer is that you should do it as soon as possible, but there are different deadlines depending on the specifics of your case. For example, if a driver hits you while performing government work, you have six months to notify the government of your claim. If the at-fault driver is a civilian, you have two years to sue for personal injury. However, it's important to note that your insurance company's policy may require you to report an accident within a shorter time frame, and failing to do so could result in your claim being denied.

The statute of limitations for auto insurance claims in Texas

Firstly, it's important to distinguish between the time limit for filing a claim with your insurance company and the time limit for filing a lawsuit against the at-fault party. While insurance companies in Texas typically allow a window of around 30 days for filing a claim, each policy may have different requirements, so it's important to consult your insurance documentation for the precise deadline. By contrast, the statute of limitations for filing a lawsuit against the at-fault party is two years. This deadline is measured from the date of injury and does not depend on when the insurance company denies your claim.

There are some situations in which the two-year statute of limitations for filing a lawsuit may be extended or "tolled". For example, if the accident victim is a minor, the time limit is paused until their 18th birthday, and they have two years from that date to file a lawsuit. Similarly, if the at-fault party dies before a lawsuit is filed, the statute of limitations is paused for one year or until a personal representative is appointed for the person's estate. Additionally, if the person who caused the accident leaves Texas, the statute of limitations is paused for as long as they remain out of the state.

It's worth noting that if you have a claim against the car insurance company itself for denying a claim for benefits, different statutes of limitations apply. For instance, if you are bringing a breach of insurance contract claim, you have four years from the alleged breach of the insurance policy to file your claim. On the other hand, if you are alleging a breach of the duty of good faith and fair dealing, or a violation of the Texas Insurance Code, you must file your lawsuit within two years of the statutory violation.

Finally, if you are filing a claim against a government entity, the deadline is shorter. In Texas, you must provide notice of your claim to the relevant government entity within 180 days of the accident, and some counties and municipalities have even shorter notice periods, sometimes as short as 60 days.

How to notify the government of your claim

In Texas, if a driver hits you while performing government work, you have six months to notify the government of your claim. This is a much shorter deadline than the typical statute of limitations for car accident claims in Texas, which is two years from the date of the accident.

The Texas Tort Claims Act requires you to provide notice of your claim to the correct government entity within six months from the accident date. Failing to do so could prevent you from pursuing a claim or lawsuit.

Some local governments in Texas have even shorter deadlines for filing claims. For example, in Houston, you have just 90 days to file a notice of claim if your car crash involves a municipal government entity.

If you've been in an accident involving a government entity, it's important to contact a lawyer as soon as possible. Even if you believe the time to file a claim has passed, a lawyer may be able to help you determine if there are circumstances that could have extended the deadline.

Deadlines for insurance companies to respond to a claim

In Texas, insurance companies have 15 days from receiving notice of a claim to respond to it. Within this 15-day period, they must:

• Acknowledge receipt of the claim
• Begin investigating the claim
• Request relevant information from the claimant to aid the investigation

If the insurance company fails to acknowledge the claim, they are in violation of Texas's Insurance Code. Along with acknowledging the claim, they must also notify the claimant of whether or not the claim has been accepted.

In some cases, insurance companies may extend the 15-day response period to 45 days, but they must have a valid reason for doing so. If the insurance company rejects the claim, they must provide a reason for their decision.

After the initial 15-day response period, the insurance company has another 15 days to investigate the claim. During this time, they must either accept or reject the claim and inform the claimant of their decision. If the insurance company continues to request irrelevant information or documentation, the claimant may want to consult an attorney. Insurance companies often use this tactic to delay making a decision, hoping the claimant will give up.

If the insurance company approves the claim, they have five business days from the date of approval to issue payment or begin the process of repairs. This brings the total timeframe to 35 days.

Texas law does provide an exception to the 35-day rule. If an insurer needs more time, they can request a 10-day extension by demonstrating a valid reason. With this extension, the insurer has up to 45 days to review, investigate, and settle the claim.

It is important to note that insurers face steep consequences for unnecessarily delaying claims. If an insurer delays payment for more than 60 days after receiving all the requested documentation, the claimant may file a claim for insurance bad faith and may be able to recover damages, including the full value of the claim, attorney costs, legal fees, and annual interest.

What to do if your insurance company denies your claim

In Texas, insurance companies have 35 days from receiving a claim to settle it. Within this time frame, they must notify you that they have received your claim, make a decision, and issue a final payment. If your claim is denied, you have the right to be told in writing why.

• Understand the reason for the denial: Review the denial letter carefully and cross-reference the reason cited with your policy. If the letter does not clearly state the reason for the denial, it may constitute bad faith practices, and you can appeal the decision.
• Appeal the decision: You have the right to appeal a denied claim. Contact your insurance company for clarification and keep records of all correspondence. Outline why the claim should be honored, citing specific policies, clauses, and additional evidence. Evidence can include photographs, video footage, witness statements, medical reports, receipts, and expert witness testimony.
• Consider small claims court: If your claim is worth $20,000 or less, you can sue in small claims court in Texas. This court is designed to be informal and easily accessible, allowing individuals to represent themselves. However, it is still a legal procedure, and you will be responsible for filing the lawsuit, gathering evidence, and presenting your argument.
• File a personal injury lawsuit: If your losses exceed $20,000, you can file a personal injury lawsuit. This option can result in significant compensation, as a judge or jury can order the defendant to cover your economic and non-economic damages. A lawsuit can also result in punitive damages if the insurance company acted in bad faith.
• Be mindful of the statute of limitations: The statute of limitations for personal injury claims in Texas is two years from the date of the accident. Keep in mind that you need to go through the process of filing a claim, waiting for a response, and preparing an appeal before deciding to file a lawsuit.
• Consult a personal injury lawyer: It is always recommended to seek legal advice when your car accident claim is denied. A dedicated car accident lawyer can review your denial letter, explain the legal jargon, determine your chances of a successful appeal, and help you gather evidence.

What to do if the at-fault driver is a civilian

If you've been in a car accident in Texas, you may be wondering how long you have to file an auto insurance claim. The answer depends on the identity of the at-fault driver. If a driver hits you while performing government work, you have six months to notify the government of your claim. If the at-fault driver is a civilian, you have two years to sue for personal injury. Regardless of who is at fault, you should start a lawsuit or claim as soon as possible to protect your rights and increase the likelihood of receiving payment.

Step 1: Gather Information

• Exchange information with the other driver, including names, contact details, insurance information, and driver's license details.
• Take pictures of the accident scene, vehicle damage, and any visible injuries.
• Collect contact information from witnesses.
• If police are called to the scene, get a copy of the police report.

Step 2: Notify Insurance Companies

• File a claim with the other driver's insurance company as soon as possible. Provide them with all the information and evidence you have gathered.
• At the same time, notify your own insurance company about the accident, even if you are not filing a claim with them yet.

Step 3: Understand Your Coverage

Review your insurance policy to understand your coverage limits and what damages are covered. Common types of coverage include collision coverage, uninsured/underinsured motorist coverage, medical payments coverage, and personal injury protection (PIP) coverage.

Step 4: Seek Necessary Repairs and Medical Attention

• If your vehicle needs repairs, get estimates from multiple repair shops and choose a reputable one. Keep track of all repair-related expenses.
• Seek medical attention as soon as possible, even if your injuries seem minor. Keep records of all medical bills and reports, as these will be important for your claim.

Step 5: Keep Detailed Records

Throughout the process, maintain detailed records of all communication, expenses, and repairs related to the accident. This includes keeping a record of witnesses, police reports, medical reports, and repair estimates.

Remember, each insurance company has its own deadlines and requirements for filing claims, so be sure to review your policy carefully and consult with a lawyer if needed.

Frequently asked questions