How Long Do Insurance Claims Take?

You have faithfully remitted all premiums. And unfortunately, an accident occurs. Or your home was
invaded, or even flooded. Regardless of the type of insurance policy you have, you deserve
compensation when an insured peril occurs. However, the process is not a clear-cut one and involves
a team. With the number of parties involved, claims payments are not a one-day event. It can be
time-consuming, especially with the coordination required between the parties involved. And if one
party doesn’t cooperate, be it yourself or the insurer, it can take even up to months for a simple
claim to be paid. Check also this article about claim forgiveness.

Who is involved in a claims process?

● The insured
● Insurance company/ insurance adjusters
● Health care staff and facilities
● Auto mechanics
● Lawyers (In case of lawsuits and disputes)

To file or not to file a claim?

The role of any insurance policy is to alleviate the financial burden in case an insured peril occurs.
However, some incidents will not necessitate you to file a claim, despite the occurrence of the
insured peril. Among the factors to consider when filing a claim include:
● The intensity of an accident- Accidents that involve other parties, be it pedestrians, vehicles
or property warrant a claim. However, if a minor accident occurred between yourself and
your car, then it may not be necessary to make a claim.
● What will be the repair/ replacement cost- Things like minor scratches on your car, water
damage to one simple piece of equipment or a dented bumper do not warrant a claim.
● Whether anyone was injured- If anyone was injured in an accident or in the event an
insured peril occurs, then you have to make a claim.
● What is your deductible amount? - Making a claim due to an accident where the cost of
replacement or repair is lower than your deductible may not be that wise. You are better off
paying for the replacement or repairs out of pocket as opposed to adding a claim record to
your profile.
● Who was at fault for the accident? – Whether you or another party was at fault for an
accident, you should make a claim. Most people shy off from making claims for accidents
where they are at fault. The insurance company may help you pay for damages caused.

Here are some factors that can influence the pay-out for your claim:

● Provincial laws- Each province has a timeframe mandated for the settlement of different
types of claims. However, this is not a mandated pay-out time rather the timeframe you
must have completed the original claims paperwork. As such, the faster you complete the
paperwork the faster your claim will be handled.
● Your insurer- Your insurer plays a vital role in the payment of your claims. This is why it’s
important to get insurance from a reputable insurer. Ensure you check reviews from
different sources and ask for recommendations when searching for an insurance company.
Some insurers can even deny your claim if it's filed too late.
● Personal injuries- Personal injuries to any parties ultimately make a claim more complex.
Whether filed quickly, the back and forth required to settle a claim can be daunting.

So, how long do insurance claims take to pay?

While your claims pay-out depends on different factors as mentioned above, the major factor that
affects it is the type of claim. Let’s discuss some pay-out time frames for different kinds of claims.
● Medical claims- This is among the longest claims to process. However, you just need to file
the paperwork and leave the rest to the hospital and your insurer to handle.
● Total loss claims- A total loss claim involves a lot of paperwork, not forgetting agreeing on a
pay-out amount can be tasking. Getting a payout on a total loss claim can take over 30 days
to finalize. Luckily, most provinces have set up limits on how long such a claim should take to
resolve.
● Roadside assistance claims- Services such as towing are easy to get a pay-out. While most
people prefer to pay out of pocket, a claim should not take more than two weeks to be
resolved.
● Physical damage- Physical damage claims can take long time to be resolved depending on the
complexity. For instance, claims on simple car damages can take approximately two weeks
to be sorted. However, complex claims on physical damages can take longer.
● Claims on natural disasters- If your region is hit by natural occurrences such as hail or
earthquakes, your claim may take long before it’s resolved especially if many people are
making similar claims.

We all want a fast claims pay-out. After all, we have faithfully remitted all the premiums, and
deserve compensation. However, that might not always be the case. Here are some factors that may
cause a delay in your claim’s pay-outs.
● Poor communication- Miscommunication between the insurer and the insured can delay a
claims pay-out. For instance, if you are not available on call or email for several days, then
you can expect a delay in your claims pay-out.
● Misunderstanding of the type of policy insured- This is one of the major causes of delays in
claims pay-outs. Ensure you understand what coverage is provided before signing the policy
document.
● Natural disasters- Natural disasters such as floods or hailstorms can delay the claims pay-out
especially if it affects a large area.
● Inadequate deductible funds- Insurers require deductibles to be remitted before a claim can
be paid. If you do not have these funds, then your claim will be delayed.
● Claim information errors- False and inaccurate claims information can not only slow the
process but also cause further complications.
Want to speed out your claims pay-out?
● Be transparent- Do not be dodgy with the events leading to an accident. Honesty, accuracy
and transparency will reduce the correction and investigation period, ultimately speeding up
the process.
● File your claims as soon as a peril occurs- Do not delay or postpone filing a claim to a later
date. Ensure you communicate with your insurer and file your claim as soon as a peril
occurs.
● Be available for clarification where needed- Being available for clarifications and
questioning will speed up your claims process.
● Ensure you provide detailed information when making a claim- Providing detailed
information reduces the back and forth between the parties involved.

The Takeaway

While we all wish for a seamless claims pay-out process, it may not always be as fast as we would
expect. Luckily, we can undertake some measures to speed up the process. Working with a
reputable insurance provider or agent can save you the headache of following claims for extended
periods. Check also this article about what accident benefits cover in Ontario.