My auto insurance claim payment is late! What now?

If your insurance company has delayed paying your auto insurance claim and you don't know what to do, here's what you should do and everything else on the subject.

There are some situations that are a bit confusing for customers when it comes to car insurance. One of them is in relation to the payment of compensation by the insurance company to the insured. If you want to know what to do if the insurance company has delayed paying the car insurance compensation, read this article and understand better.

There are few reasons why the insurance company may delay this payment. See here how these processes should happen, what are the reasons that can lead to this delay and how to act in such cases.

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When should compensation be paid to the insured?

Compensation must be paid by the insurer when there are accidents, traffic accidents, or natural disasters with damage exceeding 75% of the vehicle or theft and robbery, in which case the vehicle is considered a total loss.

When the vehicle suffers a total loss, in addition to not being able to charge the deductible for the claim, the insurance company is obliged to compensate the insured as provided for in the contract, which may be in accordance with the FIPE table, or with an amount agreed upon when contracting the service.

This payment process is called “claims settlement”and must be carried out within a maximum period of 30 days, counting from the date the necessary documents are submitted by the insured.

Can the insurance company delay payment of auto insurance compensation?

No. Payment of auto insurance compensation must be made within 30 days after submission of the documents, as stated above. However, there is only one reason that allows the service provider to delay payment of this compensation or even suspend it.

This may happen when new fundamental documents are requested, in the event of justifiable reasons that generate doubts in those previously presented.

What should I do in case of total loss?

If you experience an accident that results in a total loss, you may be compensated as agreed in the policy. However, it is essential that you are aware of the procedures.

According to the insurance contract, the company is obliged to pay the insured and their beneficiaries, if necessary, the amounts stipulated in the policy. The compensation must be in full and the insured must follow all necessary steps to ensure payment in the correct manner, with appropriate amounts and terms.

The first step is to contact the insurance company, report what happened and then wait for the following steps, which should be:

• Opening of the claim;
• Workshop budget;
• And inspection by the insurance company.

After completing these three steps, the company will have 24 to 72 hours to send you the list of necessary documents, and then it will be up to you to organize all of them and send them to the insurance company. Once the documents are in hand, the insurance company must then gather all of the necessary information and pay the claim.

After completing this process, the company must inform the insured of the deadline for payment. According to SUSEP legislation, this must be made within a maximum period of 30 days, counting from the moment the documents were delivered to the insurer.

In other words, it is essential that you request a protocol stating the dates of receipt of the documents and notification of the loss, so that you can guarantee your legal rights later.

What if the insurance company doesn't pay the compensation?

Car insurance is invariably taken out so that the insured, knowing that there are risks of being involved in an accident or having their car stolen, does not suffer greater losses or headaches as a result of what happens.

There are many possibilities for incidents, and when one of them happens, the insured may discover that instead of being protected, he will have yet another problem.

There are some cases in which the insurance company, instead of performing the service it was contracted for, refuses to do so. Whether it is just a repair or in the case of a total loss, the insurance company has exactly 30 days, after the delivery of the requested documents, to authorize payment.

A very common thing among insurance companies is that they delay the filing of documents submitted by the insured, in order to delay the compensation payment process, since they know that the 30-day period only starts counting from this procedure.

In addition to delaying the document filing process, it can drag its feet, increasing unnecessary bureaucracy, requesting more and more irrelevant documents, all in order to avoid its responsibility.

If this happens, demand your rights, don't let it get the better of you. Read your entire contract, discuss its terms with the broker, and if your rights are still not respected, seek out consumer protection agencies or take legal action through a specialized lawyer and enforce the law.

It is worth remembering that in these cases, lawsuits involving up to 40 minimum wages can be processed in the Small Claims Court, while those involving no more than 20 minimum wages do not require hiring a lawyer.

4 tips to avoid delays in paying compensation

Here are some tips that can help you avoid delays in the entire process of paying your auto insurance claim:

1 – The list of documents

Insurance companies usually take 24 to 72 hours after the coverage is activated to send the insured a list of documents that must be submitted. If this period is extended, contact your broker and find out why it is taking so long and what documents are required.

2 – Provide the documents as soon as possible

As soon as you receive the list of documents, provide them as soon as possible. The less time it takes to deliver them to the insurance company, the sooner the 30-day period will start counting.

3 – Check the documents carefully

No matter how many times it is necessary, check all the documents, one by one, and ask the broker to do the same, this will ensure that the 30-day period does not extend too much due to the lack of any document.

4 – Beware of misplacement

It is best to send the documents through the insurance broker responsible for your policy. If this is not possible, try to find the company's address in your city and deliver the documents in person. This way, you will avoid loss and possible reasons for late payment of the auto insurance claim.