The Deadlines Your Own Insurer Must Follow

Filing a claim with your own insurance company after a car accident feels like it should be simple. Texas law backs that expectation up with specific deadlines and real financial consequences when an insurer drags its feet.

The Statute That Sets These Deadlines

Under Texas Insurance Code Chapter 542, commonly called the Texas Prompt Payment of Claims Act, insurers must acknowledge a claim and request necessary information within 15 business days, make a decision on the claim within 15 business days after receiving that information, and pay an accepted claim within 5 business days of accepting it.

What Kind Of Claims Does This Law Cover

This law applies broadly to first party insurance claims, meaning claims you file with your own insurer rather than the at fault driver’s company. This commonly includes uninsured and underinsured motorist claims, medical payments coverage, and other first party benefits under your own auto policy.

What Happens When An Insurer Misses These Deadlines

An insurer that violates these deadlines without a valid reason becomes liable for the amount owed on the claim, plus interest at 18 percent per year, plus reasonable attorney fees. This penalty structure exists specifically to discourage insurers from delaying legitimate claims to pressure policyholders into accepting less.

Can An Insurer Extend These Deadlines

Yes, in limited circumstances. Kelso Law reviews any claimed extension closely to confirm the insurer actually had a reasonable basis for the delay. An insurer can request additional time if it provides a reasonable basis for the extension, but this does not give insurers unlimited discretion to simply delay a claim indefinitely without justification.

Why This Law Matters So Much For UM And UIM Claims

Because uninsured and underinsured motorist claims are filed against your own insurer rather than an opposing party, this statute’s deadlines apply directly. An insurer that slow walks a UM or UIM claim, rather than a third party liability claim, faces the same prompt payment penalties under this law.

What Documentation Helps Track Compliance With These Deadlines

Because these violations depend on precise timing, keeping careful records throughout the claims process matters considerably:

• Dated correspondence showing when the claim was first submitted
• Records of when the insurer acknowledged the claim and requested information
• Documentation of when all requested information was actually provided
• Any written communication regarding delays or requested extensions

Applying This Law To A Dallas Car Accident Claim

Because this statute’s penalties can significantly increase what an insurer ultimately owes, tracking these deadlines closely from the moment a claim is filed matters considerably. A Dallas car accident lawyer can evaluate whether an insurer’s delays violate this statute and pursue the resulting penalties.

What If The Insurer Claims A Valid Reason For Delay

Insurers sometimes cite ongoing investigation or missing documentation as justification for delay, even when the claim is genuinely straightforward. A Dallas car accident lawyer can evaluate whether a claimed justification actually holds up under this statute’s requirements.

This law gives policyholders a real advantage against an insurer that drags out a legitimate claim, but enforcing it requires careful documentation of every deadline along the way. If your own insurer is delaying a car accident claim in Dallas, reach out to our office to go over the timeline of your claim.