Florida Auto Insurance Claim Delay: What Are My Rights If My Insurer Won’t Pay on Time?

Florida Auto Insurance Claim Delay: What Are My Rights If My Insurer Won’t Pay on Time?

After a crash, you expect your auto insurer to do what you’ve paid for: investigate the claim, communicate clearly, and issue payment when benefits are owed. But a Florida auto insurance claim delay can leave you stuck paying out of pocket for medical care, car repairs, or rental transportation while the insurer “reviews” your file.

Florida law gives policyholders meaningful protections. Insurers are not allowed to drag their feet without a valid reason, and certain benefits(especially PIP) have specific timing rules.

This blog explains what Florida law generally requires, what timelines may apply, when delays might be legitimate, and the practical steps you can take if your payment is being held up.

What Florida law expects from auto insurers

Florida’s insurance laws describe “unfair claim settlement practices,” including conduct like:

• failing to adopt and implement standards for proper claim investigation
• failing to acknowledge and act promptly on claim communications
• denying claims without reasonable investigations
• failing to provide a reasonable written explanation for a denial or compromise offer
• failing to promptly tell you what additional information is needed, and why it’s needed

Florida law defines these as unfair claim settlement practices when committed with such frequency as to indicate a general business practice, and they can also be relevant to statutory civil-remedy (bad faith)claims depending on the facts.

These rules matter because delays often show up in the same ways: unanswered emails, repeated document requests without explanation, shifting reasons for nonpayment, or no clear timeline for a decision.

Key deadlines that can apply in Florida auto claims

Not every auto claim has a single universal deadline, but Florida law does impose specific timing requirements in common situations.

Beyond PIP-specific deadlines, Florida’s claims-handling rules generally require insurers to acknowledge claim communications within 14calendar days (with limited exceptions), and to provide claim forms or instructions when the communication is a notice of claim.

PIP medical benefits often have a clear 30 day rule

If you have Personal Injury Protection (PIP), Florida law states PIP benefits are overdue if not paid within 30 days after the insurer is furnished written notice of a covered loss and the amount.

Important details:

• If the insurer pays only part of a PIP claim or rejects it, the insurer must provide an itemized specification or explanation of what was reduced, omitted, or denied.
• A payment is not considered overdue if the insurer has reasonable proof it is not responsible for payment.
• Overdue PIP payments bear simple interest as provided by Florida law (generally tied to the § 55.03 statutory rate, or the contract rate if higher).

Suspected PIP fraud investigations have their own timeline

If an insurer has a reasonable belief a fraudulent insurance act has been committed, the statute requires specific notice and timing. The insurer must notify the claimant in writing within 30 days that the claim is being investigated for suspected fraud, and then the insurer generally has an additional 60 days to investigate. The insurer must deny or pay the claim (with interest) no later than 90 days after submission.

If you reach a written settlement, payment should not drag on

If you and the insurer agree in writing to settle a claim, Florida law generally requires the insurer to tender payment no later than 20 days after the settlement is reached (subject to the agreement’s terms). If payment is not tendered on time, it generally bears 12 percent annual interest from the date of the agreement, with special timing rules when payment is conditioned on signing a release.

When a delay may be legitimate

Some delays are frustrating but legally defensible, especially when the insurer is actively investigating. Examples include:

• waiting on a crash report, medical records, or repair documentation
• resolving liability disputes (who was at fault)
• confirming coverage issues (policy in force, exclusions, policy limits)
• evaluating damages that are still changing (ongoing treatment)

The key difference between a reasonable delay and a potentially wrongful one is usually transparency and follow through. If the insurer tells you exactly what it needs, why it needs it, and responds promptly as the claim progresses, that’s different from silence, shifting excuses, or requests that do not make sense.

Practical steps to take if your auto insurer is delaying payment

Here are factual steps that help protect both your claim and your financial stability.

1) Get the status in writing

Ask:

• What information is still needed
• Who is requesting it
• When a coverage or payment decision will be made

Florida law lists failures like not promptly acknowledging communications or not providing reasonable written explanations as unfair practices.

2) Organize your claim file

Keep a folder with:

• claim number and adjuster contact info
• photos, repair estimates, and invoices
• medical bills and visit summaries
• every email and letter
• a call log with dates and what was said

3) If this is PIP, track the timeline carefully

If written notice was furnished and payment has not been made within the statutory timeframe, ask the insurer to identify the specific basis for nonpayment and provide the itemized explanation required when a claim is reduced or rejected.

4) Do not sign releases you do not understand

If a settlement is being discussed, make sure the settlement terms are clear and in writing. Once a written settlement exists, the payment deadline and interest rules may apply.

5) Escalate to Florida’s consumer assistance resources if needed

If you are not getting answers, you can request help through Florida’s Division of Consumer Services, which provides guidance and can open a formal complaint process.

External resource (Florida government): Get Insurance Help from the Florida Department of Financial Services.

Can you sue for an unreasonable delay?

Potential legal options can include a breach of contract claim for policy benefits, and in some situations a bad faith claim.

Florida’s statutory bad faith framework allows a civil action in certain circumstances, but it generally requires a 60 day written notice to the Department and the insurer (often discussed as a Civil Remedy Notice process),giving the insurer an opportunity to cure.

Bad faith claims are procedural and fact-specific, and Florida law typically requires strict compliance with the Civil Remedy Notice process before a statutory bad faith action can be pursued.

Not every delay qualifies as bad faith. The facts matter, including what the insurer knew, what it requested, what you provided, and whether the obligation to pay was reasonably clear.

Talk to Nation Law if your insurer is stalling

An insurance delay can feel like you’re being punished for filing the claim you were supposed to file. You deserve clear communication and a fair process.

If you’re dealing with a Florida auto insurance claim delay and you’re not getting answers, Nation Law can review your situation, explain your options, and step in to protect your rights.

Call now for a free case evaluation or reach out here: https://www.nationlaw.com/contact-us/

You trusted us. We’re honored to fight for you.