Can You Sue An Insurance Company For Taking Too Long?

Last Updated on January 7, 2026 by Aliya Amber

When you file an insurance claim, you expect a reasonable and timely response. Whether it is health insurance, car insurance, homeowners insurance, or business insurance, delays can cause serious financial stress, emotional strain, and even legal trouble for policyholders. Many people eventually ask the same critical question: can you sue an insurance company for taking too long? The short answer is yes, in certain situations, you can take legal action against an insurance company for unreasonable delays. However, the longer and more important answer depends on why the delay happened, how long it lasted, what type of insurance is involved, and whether the insurer violated the law or the terms of your policy.

Insurance companies are legally obligated to handle claims fairly, honestly, and within a reasonable timeframe. While delays can sometimes be justified due to investigations or missing documentation, prolonged or intentional stalling can cross the line into what is legally known as bad faith insurance practices. Understanding when a delay becomes illegal, what rights you have as a policyholder, and what steps you should take before suing is essential. This guide explains everything in detail so you can make informed decisions if your insurer is dragging its feet.

Also Explore: Can I Sue My Car Insurance Company

Understanding Insurance Claim Delays and Why They Happen

Insurance claims do not always move quickly, and not every delay is automatically illegal. In many cases, insurance companies require time to review documentation, verify coverage, assess damages, consult experts, or investigate potential fraud. For example, after a major car accident or natural disaster, insurers may receive thousands of claims at once, which can slow down processing. Similarly, complex claims involving injuries, property damage, or disputed liability may take longer to evaluate properly.

However, problems arise when delays go beyond what is reasonable or necessary. Some insurance companies intentionally slow down claims to pressure policyholders into accepting lower settlements, abandoning claims altogether, or simply running out of patience. In other cases, insurers may fail to communicate, repeatedly request unnecessary paperwork, lose documents, or provide vague excuses without clear timelines. When these tactics cause financial harm or emotional distress, the delay may become actionable under the law.

What Does “Too Long” Mean in Insurance Claims?

One of the most common questions policyholders ask is how long is “too long” when waiting for an insurance decision. The answer depends on state laws, the type of insurance, and the specific circumstances of the claim. Most states have insurance regulations that require insurers to acknowledge a claim within a certain number of days, investigate it promptly, and approve or deny it within a reasonable timeframe. These deadlines often range from 15 to 45 days, although extensions may be allowed with valid reasons.

If an insurance company fails to meet these deadlines without justification, the delay may violate state insurance laws. Even if no specific deadline applies, courts often evaluate whether the insurer acted reasonably under the circumstances. A delay that leaves a homeowner unable to repair damage, a driver without a working vehicle, or a patient unable to pay medical bills may be considered excessive, especially if the insurer does not communicate clearly or provide updates.

The Legal Concept of Insurance Bad Faith

To understand whether you can sue an insurance company for taking too long, it is important to understand bad faith insurance. Bad faith occurs when an insurer fails to act honestly, fairly, or in good faith toward its policyholder. Delaying a claim without a valid reason is one of the most common examples of bad faith behavior.

Insurance bad faith can include ignoring communications, refusing to investigate a claim properly, misrepresenting policy terms, requesting redundant information, or delaying payment after liability is clear. When bad faith is proven, policyholders may be entitled to damages beyond the original claim amount. This can include compensation for emotional distress, financial losses caused by the delay, attorney fees, and in some cases, punitive damages designed to punish the insurer.

Types of Insurance Claims Commonly Affected by Delays

Delays can occur across nearly all types of insurance, but some categories are particularly prone to disputes. Auto insurance claims often face delays when fault is disputed or when insurers argue over repair costs. Health insurance claims may be delayed due to preauthorization issues, coverage disputes, or administrative errors. Homeowners insurance claims frequently experience delays after storms, floods, or fires, especially when insurers question the extent of damage or the cause of loss.

Business insurance claims, including interruption and liability coverage, are also commonly delayed because they often involve complex financial assessments. In each of these situations, delays can have serious consequences, making it even more important to understand your rights and legal options.

When a Delay Becomes Grounds for a Lawsuit

Not every delay automatically gives you the right to sue, but certain red flags strongly indicate that legal action may be justified. If the insurance company repeatedly misses deadlines without explanation, refuses to provide written reasons for delays, or continues requesting unnecessary information after you have fully cooperated, these behaviors may support a claim of bad faith.

Another key factor is harm. If the delay caused you financial loss, such as late fees, loss of income, additional repair costs, or damage to your credit, this strengthens your legal case. Emotional distress, while harder to quantify, may also be considered, particularly if the delay worsened an already stressful situation like a serious injury or home displacement.

Steps to Take Before Suing an Insurance Company

Before filing a lawsuit, it is important to take several strategic steps that can strengthen your position and possibly resolve the issue without court involvement. Start by reviewing your insurance policy carefully to understand coverage terms, claim procedures, and deadlines. Keep detailed records of all communications with the insurer, including emails, letters, phone calls, and claim reference numbers.

Next, formally request a written explanation for the delay. Many delays suddenly resolve once an insurer realizes you are documenting the issue. You may also file a complaint with your state’s insurance department, which can investigate and pressure the insurer to act. In some cases, hiring an attorney and sending a legal demand letter is enough to prompt payment without litigation.

Can You Sue for Emotional Distress Caused by Delays?

Many policyholders wonder whether emotional stress caused by insurance delays is compensable. The answer depends on the severity of the distress and the jurisdiction. In bad faith insurance cases, courts may allow recovery for emotional distress if the insurer’s conduct was egregious and caused significant mental suffering. This is more common in cases involving health insurance, disability insurance, or homeowners insurance where delays directly affect a person’s safety, health, or living conditions.

While emotional distress claims can be harder to prove than financial losses, detailed documentation, medical records, and testimony can help support such claims. Consulting an experienced attorney is often crucial in these situations.

Statute of Limitations and Timing Considerations

Even if an insurance company has acted improperly, you must still file your lawsuit within the applicable statute of limitations. This deadline varies by state and by type of claim, but it typically ranges from one to several years. Waiting too long can permanently bar your right to sue, regardless of how strong your case is.

It is also important to consider timing strategically. Filing too early, before the insurer has had a reasonable opportunity to resolve the claim, may weaken your case. On the other hand, waiting too long can allow the insurer to argue that you accepted the delay or failed to mitigate damages. Balancing these factors requires careful judgment and, often, legal advice.

What Compensation Can You Recover in a Lawsuit?

If you successfully sue an insurance company for taking too long, the compensation you receive can vary widely. At a minimum, you may recover the benefits owed under your policy. In bad faith cases, additional damages may be awarded for financial losses caused by the delay, such as extra repair costs, lost wages, or interest on unpaid amounts.

In some jurisdictions, courts may also award punitive damages if the insurer’s behavior was particularly reckless or malicious. These damages are designed to punish wrongdoing and deter future misconduct. Attorney fees and court costs may also be recoverable, making it easier for policyholders to pursue justice.

How Long Does an Insurance Bad Faith Lawsuit Take?

Ironically, lawsuits against insurance companies can also take time. While some cases settle quickly after a lawsuit is filed, others may take months or even years to resolve, especially if they go to trial. The duration depends on the complexity of the case, the evidence involved, and the insurer’s willingness to negotiate.

That said, many insurers prefer to settle bad faith claims rather than risk public scrutiny and punitive damages. Strong documentation and legal representation often speed up the resolution process.

Should You Hire a Lawyer for Insurance Delay Claims?

While it is possible to handle minor disputes on your own, hiring a lawyer is often advisable when delays are significant or when bad faith is suspected. Insurance companies have legal teams whose job is to minimize payouts, and going up against them alone can be challenging. An experienced insurance attorney understands state laws, negotiation strategies, and litigation procedures that can significantly improve your outcome.

Many insurance lawyers offer free consultations and work on a contingency basis, meaning they only get paid if you win. This reduces financial risk and makes legal help more accessible.

Preventing Future Insurance Delays

Although you cannot control an insurer’s behavior entirely, there are steps you can take to reduce the risk of delays. Submitting complete and accurate documentation, responding promptly to requests, and keeping organized records can help your claim move faster. Choosing reputable insurers with strong customer service records can also make a difference.

Being proactive, informed, and assertive often signals to insurers that you are not an easy target for delay tactics.

Final Thoughts:

So, can you sue an insurance company for taking too long? Yes, you can, especially when the delay is unreasonable, unjustified, and harmful. Insurance laws exist to protect policyholders from exactly this kind of conduct, and courts take bad faith seriously. However, success depends on understanding your rights, documenting everything, and taking the right steps at the right time.

If you believe your insurer is intentionally delaying your claim, do not ignore the issue or assume it is normal. Educate yourself, seek professional advice if necessary, and take action to protect your financial and legal interests. Insurance is meant to provide security and peace of mind, not frustration and hardship, and the law offers remedies when companies fail to live up to their obligations.