Wisconsin law gives insurance companies 30 days to pay valid claims after receiving written notice of the loss and how much it costs. This rule applies to car and truck accident claims. If an insurer misses the 30-day deadline, the payment is considered overdue. The law doesn’t require the entire claim to be submitted at once. Partial claims can also trigger the 30-day countdown. The deadline aims to protect policyholders after accidents by putting pressure on insurers to handle claims in a timely manner.
What “Written Notice” Means in Auto Accident Claims
The 30-day payment window doesn’t start until the insurance company receives written notice of two things: that a covered loss happened, and how much the loss is worth. That usually means claimants must send documents that prove a crash occurred and show the cost of the damage. These documents can include police reports, repair estimates, medical records, or bills. Without both the facts and the dollar amounts, the “clock” doesn’t start.
Some companies use this rule to slow things down by demanding lots of paperwork or waiting to acknowledge what you’ve already sent. You can avoid delays by submitting complete records quickly and requesting written confirmation that your insurer has received them.
When Payment Is Not Considered Overdue
Sometimes, insurance companies can delay payment without breaking the law. If they have solid proof that they don’t owe money on a claim, then the payment isn’t considered overdue, even if you gave them proper notice. That might happen if they’re still investigating who caused the crash or if they dispute your coverage. Additionally, if the adjuster can’t tell who should receive the money, they can wait until they confirm the right payee. However, they must explain such delays in writing.
Penalties for Late Payments: Interest on Overdue Claims
If an insurance company misses the 30-day deadline without a valid reason, Wisconsin law requires them to pay interest on the overdue amount. The interest rate is 7.5 percent per year, and it applies to any portion of the claim that becomes overdue.
This rule encourages insurers to take claims seriously and act quickly. If you’re owed thousands of dollars, and your insurer delays payment by several months, the interest can add up. That extra money belongs to you, not the company, and you have the right to demand it.
Uninsured and Underinsured Motorist Claims
An uninsured or underinsured motorist (UM/UIM) claim will often take longer than other auto accident claims. That’s because your own insurer will step in only after you prove that the at-fault driver had no or insufficient coverage. The 30-day payment rule doesn’t kick in until your insurer receives written notice and the proper proof of loss, which can take time to gather in these cases.
How Insurance Companies Stall (and What You Can Do About It)
Some insurers delay claims by asking for unnecessary documents, dragging out investigations, or refusing to admit fault. They may even ignore your calls or claim they never received your paperwork. These stalling tactics can slow down payments and cause extra stress, but you don’t have to accept them.
You can push back by presenting copies of everything you have sent, asking for written confirmation, and keeping track of every deadline. If your insurer doesn’t respond or violates the 30-day rule, you may have a right to interest or additional compensation. A Madison accident lawyer can help you keep the pressure on the insurance company and demand the payment you are owed.
Contact Our Madison Accident Law Firm
Insurance delays after a car or truck crash can affect your finances and your recovery. An attorney from Atterbury, Kammer & Haag, S.C., can review your claim, explain your rights under Wisconsin law, and help you address late or improper payment practices. Our lawyers work with clients in Madison and across Wisconsin from offices in Middleton, Wautoma, and Minocqua, and we offer free consultations. Contact us now to arrange your initial consultation and get clear answers about your claim.