How Long Does an Insurance Company Have to Settle a Car Accident Claim in Alaska?

When you file a car accident claim, you expect the insurance company to handle your case fairly and promptly. Unfortunately, many Alaskans find themselves waiting far longer than they should for a resolution. This delay can be frustrating and financially stressful, especially when you're dealing with medical bills, vehicle damage, and lost income. So, how long is too long? In Alaska, insurance companies must follow specific time limits when reviewing and settling claims. These legal guidelines are designed to protect policyholders and ensure that companies don’t drag their feet or delay payments without a valid reason. 

Under Alaska’s insurance regulations, an insurer must acknowledge your claim within 15 working days after receiving it. Once the claim has been acknowledged, the company must conduct a timely investigation and decide whether to accept or deny the claim within a reasonable period. While “reasonable” isn’t defined by an exact number of days, most insurers are expected to act within 30 to 45 days—as long as they have received all necessary documentation. 

Delays that stretch beyond these timeframes may not only be frustrating but could also signal that the company is engaging in unfair or bad faith practices. If that’s the case, legal action may be warranted.

Why Car Insurance Claims Get Delayed

Insurance companies are obligated to handle claims efficiently, but there are several reasons why delays occur. Some delays may be legitimate—others may be attempts to reduce what the insurer ultimately pays out. Understanding the common causes of delays can help you identify when a situation crosses the line into bad faith behavior. Here are some of the most frequent reasons for claim delays:

• Incomplete documentation: If you haven’t submitted a police report, repair estimates, or medical records, the insurer may claim they can’t proceed.
• Disputed liability: If the parties involved disagree about who caused the accident, the insurer might delay making a decision while investigating fault.
• Multiple vehicles or parties: Accidents involving more than two vehicles, passengers, or commercial drivers can take longer to sort out.
• Requests for further evidence: Some insurers request independent medical exams, additional photos, or witness statements, adding weeks to the process.
• Internal backlog: Staff shortages or high claim volumes may result in slower-than-normal processing, though that doesn’t excuse unreasonably long delays.

While some of these delays are understandable, others are avoidable or even intentional. Insurance companies often use delay tactics to wear claimants down. The longer you wait, the more pressure you may feel to accept a lower settlement just to move forward. That’s why it’s important to document every interaction and know your rights under Alaska law.

What Alaska Law Says About Claim Handling Deadlines

Alaska’s Unfair Claims Settlement Practices Act sets out the rules insurers must follow when handling claims. This includes prompt communication, fair investigation procedures, and timely decisions. While the law doesn’t set a firm deadline for when every claim must be paid, it does require that insurers act “within a reasonable time” once they have all the necessary information. Here are a few of the legal requirements insurers must follow:

• Acknowledge receipt of a claim within 15 working days
• Promptly investigate and evaluate the claim once documentation is received
• Offer payment or explain denial in writing within a reasonable time frame
• Provide clear and specific reasons for any denial or delay

If an insurance company violates these rules—by delaying without reason, misrepresenting policy terms, or failing to communicate—they may be acting in bad faith. In such cases, the policyholder has the right to pursue legal remedies, including additional compensation for emotional distress, attorney’s fees, or even punitive damages.

Steps to Take If Your Claim Is Delayed

If your car insurance claim is dragging on without explanation, don’t sit back and wait indefinitely. There are several proactive steps you can take to protect your claim and your rights.

• Request written updates: Ask the insurance company for a written explanation of the delay, including what documents they are waiting on and when you can expect a decision.
• Keep a detailed record: Document all phone calls, emails, and letters. Note who you spoke with, the date, and what was discussed.
• Submit complete documentation: Make sure you’ve provided everything the insurer requested, including repair estimates, police reports, and medical records.
• Contact the Alaska Division of Insurance: You can file a formal complaint if you believe the insurer is violating claim handling standards.
• Consult an attorney: If delays persist, it may be time to speak with an experienced insurance claim lawyer who can hold the company accountable.

A lawyer can help determine whether your case involves bad faith and may be able to negotiate a faster, more favorable outcome. If necessary, they can also file a lawsuit to recover what you’re owed—plus any damages caused by the delay itself.

The Cost of Waiting: Why Timely Action Matters

While it might be tempting to wait and hope the insurer does the right thing, doing so can be costly. Delays in car accident settlements can leave you without transportation, increase your debt, and affect your ability to return to work. More importantly, you may lose access to vital evidence over time—photos, vehicle damage, and eyewitnesses can all become less reliable or disappear completely. 

In addition to those practical issues, Alaska has a two-year statute of limitations for personal injury claims. That means if your case involves serious injuries and you hope to file a lawsuit, you must do so within two years of the date of the accident. If an insurance company delays your claim long enough, you might miss your chance to pursue full compensation in court. For this reason, it’s critical to recognize when delay tactics are being used and respond accordingly. Insurance companies count on claimants not knowing their rights. By acting quickly and getting legal help, you shift the power back in your favor.

Contact the Law Office of Curtis W. Martin After an Alaska Car Accident

If your car accident claim is being delayed or underpaid, don’t wait for the insurance company to decide your future. Contact us today to find out how we can help you hold them accountable and fight for the compensation you deserve under Alaska law.