San Diego, CA asked in Insurance Bad Faith for California

Q: Been 30 days since Auto Insurance approved a claim but not paid out, what happens now? California

May 27th, 22 My car was hit by a drunk driver while parked. I reached out to their insurance for a settlement. It has been over 30 days since they approved the claim. However, they still haven't paid out. I have provided them with Photos, police report, and police documentation # to request their own copies. They state they want more time to investigate. What happens now that they are going over the time limit? I am using this reference point.

15 days to acknowledge the claim and send the policyholder instructions and paperwork. This includes proof-of-loss forms, which serve as a sworn statement from the policyholder about the scope of the damage or injuries.

40 days to make a decision on the claim after receiving completed proof-of-loss forms.

30 days to make the final payment if the claim is approved.

They have informed me that the person only has liability but I will get maximum 5k Damages are much worse. Which is why I am confused as to why they wont just send the check.

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1 Lawyer Answer
Neil Anapol
Neil Anapol
  • Insurance Claims Lawyer
  • Burbank, CA
  • Licensed in California

A: These time limits you speak of (California Code of Regulations section 2695.7 do not apply to third party claims. The at-fault party's insurance company can simply refuse to pay. If that happens, your only recourse would be to sue the at-fault party. This is why it is almost always a better idea to put the claim through your own insurance (assuming you have collision coverage). The time limit do apply to your insurance carrier. If you do that, your premiums will not increase, and your insurance company will get the money back from the at-fault driver's insurance.

If this is a situation where the at-fault party does not have adequate insurance and you do not have collision coverage, sue in small claims court and go after the at-fault party's personal assets.

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