Texas Insurance Code Chapter 542 (the Prompt Payment of Claims Act) sets the legal maximums. Real-world timelines are often faster — but they can stretch much longer for disputed or injury claims.
Statutory deadlines
- Acknowledge receipt: 15 days
- Make coverage decision: 15 business days after receiving all required information
- Pay accepted claim: 5 business days after acceptance
Property damage timelines
Simple property damage claims (one vehicle, clear fault) often close in 2–4 weeks: a few days for inspection, 1–4 weeks for repairs depending on parts.
Total loss timelines
Total loss settlements typically take 2–6 weeks: inspection, ACV valuation, paperwork (title release, lender payoff), and final payment.
Bodily injury timelines
Injury claims should not be settled until medical treatment is complete or you've reached maximum medical improvement. This often takes 3–12 months. Settling early almost always means under-settling.
Disputed liability
If liability is contested, claims can stretch 6–12 months while subrogation, witness statements, and reconstruction work it out. Your collision coverage can pay you in the meantime if you have it.
Lawsuit timelines
If a claim becomes a lawsuit, expect 12–24+ months. Most Texas auto cases settle before trial.
Frequently asked questions
How long does an insurance company have to pay?
5 business days after acceptance, per Texas Insurance Code §542.057. Total decision deadline is 15 business days after receiving all required information.
Why is my claim taking so long?
Disputed liability, total-loss valuation, lien releases, or pending medical treatment are the most common causes.
Can I push them to move faster?
Yes — written demand letters citing §542 deadlines often produce action. TDI complaints work too.
Should I settle an injury claim quickly?
No. Wait until medical treatment is complete or you've reached maximum medical improvement. Early settlements almost always under-pay.
What if the insurer misses a deadline?
They owe 18% annual interest plus attorney fees on unpaid claims under §542.060.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.