5 Things to Keep in Mind About Statute of Limitations Insurance Claims

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The business of insurance is unavoidable. If you own a home, drive a car or need healthcare, insurance is a part of your living in this society. When things come up or accidents happen, a claim has to be filed, negotiations are made, and insurance companies do their best to cap payouts in the interest of their bottom line. Part of the strategy to keep company profits intact includes statute of limitations. These allow companies to deny policyholder’s claims if they are improperly filed or not filed within the specified time frame.

1. Policy Control Terms

If you’re looking to make a personal injury lawsuit to make yourself whole, you’ll need to know that there is a  statute of limitations insurance claim looming over your head. You do not have your whole lifetime to recoup damages from a car accident or other personal injury. The amount of time that you have is detailed in the insurance contract. There’s also a time limit for bringing appeals regarding a denial of benefits or a breach of contract. Keep in mind that these limitations are quite often 60 days or less.

2. State Laws Vary

The statute of limitations will always vary according to what state you’re in. Although the insurance company can set their statute of limitations, it has to be within the parameters of the state they are in. Every state sets the timeline for how long a breach of contract lawsuit can be brought against an insurance provider. Should an insurer step out of the bounds that state has set, it is void because it is against public policy. 

3. It’s Defensive

Although courts will uphold statute of limitations in claims for benefits, many will also allow claims to be brought against insurance companies for breach of contract even after the statute of limitations has been reached. It is the burden of the insurance company to raise a statute of limitations defense. This means that policyholders can attempt to make a claim if they so choose. 

4. Insurance Timelines

Most people are unaware that the insurance company is also under a statute of limitations. When a claim is brought to them, they have a time period in which they have to settle that claim. You’ll also need to understand that the statute of limitations is different according to the situation. Injuries from car accidents have a different timeline than injuries from car accidents that require medical attention. And property insurance claim limitations will differ from life insurance claims. There’s a lot of nuance to the limitations that will vary according to the state and the type of insurance claim. Be sure to educate yourself on the statute of limitations that apply to the insurers as well.

5. Your Age Matters

Statute of limitations can sometimes vary according to age. When a minor has been injured, the limitations are different. This is because most laws are created with the best interest of children in mind. For many states, the clock doesn’t start ticking until the minor turns 18 years of age.

Remember, insurance companies have to look out for their best interests while giving you some peace of mind. These statute of limitations keep them from getting stuck with the bill for things that may not be part of the original accident.

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