Suing an Insurance Company for Taking Too Long

If you've ever filed an insurance claim after an accident and then spent weeks or months waiting for a response while your medical bills stacked up and your calls went unreturned, you already know the frustration. But here's the question you have to ask: Is what they're doing actually illegal? Can you sue an insurance company for taking too long?

The short answer is yes, you can. In Texas, insurance companies are not allowed to take as long as they want to process your claim. They are bound by deadlines, and when they violate those deadlines without a valid reason, you may have the right to sue them. This is known as a bad faith insurance claim. With the right Houston personal injury lawyer in your corner, you can fight back against it.

At We Fight Giants, we fight for people who have been injured and then hung out to dry by the very insurance companies that were supposed to protect them. If you believe an insurer is deliberately dragging out your claim, this guide will walk you through everything you need to know.

Call Mark Thiessen and Thiessen Law Firm at (713) 864-9000 to start fighting back.

What does “bad faith” mean for an insurance claim

Every insurance policy is a contract. When you pay your premiums, the insurance company promises to handle valid claims fairly and promptly. Embedded in that contract (and in Texas law) is what's called the implied covenant of good faith and fair dealing. When an insurer violates that covenant, it's not just a breach of contract. It's bad faith.

At its core, bad faith means an insurance company is unreasonably or dishonestly handling a claim.

This applies to all types of insurance, from auto and personal injury policies to homeowner's and business liability coverage. When an insurance company violates this covenant, it may be liable for damages beyond the original value of the claim.

Bad faith doesn't just mean a claim was denied. It can mean the insurer is stalling, lowballing, ignoring you, or manufacturing reasons to avoid paying what you're legitimately owed. In the context of delays specifically, bad faith occurs when an insurer is sitting on your claim without a legitimate reason, and doing so in a way that harms you financially or emotionally.

Common examples of bad faith delay tactics include:

Repeatedly requesting documents you've already provided
Assigning multiple adjusters to your claim with no continuity
Sending vague status updates that say "under review" for weeks with no further explanation
Acknowledging receipt of your claim just before a deadline, then going silent
Requesting unnecessary medical records or other documentation to artificially extend the timeline

If you request updates on your case and their responses heavily feature vague language without meaningful progress or detail, it may signal that the insurance company is acting in bad faith.

How long does an insurance company have to investigate a claim in Texas?

Texas has some of the clearest and most enforceable insurance claim deadlines in the country, governed primarily by Chapter 542 of the Texas Insurance Code, also known as the Prompt Payment of Claims Act. Under this law, insurers must respond to a claim and begin investigating within 15 business days, accept or reject the claim within 15 business days after receiving all necessary information, and pay accepted claims within 5 business days after agreeing to do so.

Here's a breakdown of what the law requires at each stage of the claim process:

Stage	Deadline
Acknowledge receipt of claim	15 business days
Accept or deny after receiving all required info	15 business days
Pay accepted claims after agreeing to do so	5 business days
Maximum extension (with written justification)	45 business days

These are legal mandates. There is an 18% annual interest penalty that exists specifically to remove any financial incentive for delays, and it applies automatically once a violation is established, without requiring proof of bad faith or intentional misconduct. That means even if the insurer eventually pays, missing these deadlines without justification can cost them significantly more.

Can you sue an insurance company for delaying your claim?

So what happens if they delay unfairly? Can you sue an insurance company for it? Yes, you can. You can sue an insurance company for taking too long to process your claim IF they act in bad faith. In Texas, both the Texas Insurance Code and Texas common law give policyholders the right to pursue legal action when an insurer engages in unreasonable delay.

Though we should say now that not every delay automatically qualifies as bad faith. In fact, many don’t. Insurers are allowed a reasonable time to investigate complex claims, gather medical records, or wait on third-party documentation. The key word is "reasonable." Insurance companies are allowed time to investigate a claim, but that time must be reasonable. Delay becomes unlawful when it serves no legitimate purpose or is used as leverage to pressure injured people into accepting less than they deserve.

To successfully file a lawsuit against an insurance company for taking too long, you generally need to demonstrate the following.

You filed a valid claim under your policy
The insurer unreasonably delayed processing that claim
The delay caused you real harm (financial, physical, or emotional)
The insurer had no legitimate justification for the delay

The threshold for proving insurance bad faith is higher than simply showing that the insurance company was wrong about your claim. You must demonstrate that the insurer knew or should have known that there was no reasonable basis for denying or delaying your claim. This high standard of proof often requires evidence of the insurer's state of mind or internal practices — which is why having the best Houston bad faith insurance lawyer you can find is essential.

What can you recover in a bad faith lawsuit?

If you prove that an insurance company acted in bad faith, you're not just entitled to the original value of your claim. Texas law allows for additional recovery that can far exceed the amount you were initially owed.

Potential damages in a successful bad faith lawsuit include:

Your original claim amount, or the money you were owed under your policy
18% annual interest on the delayed payment
Consequential damages, which include financial losses you suffered as a direct result of the delay, like medical debt, lost wages, or additional living expenses
Emotional distress damages, which include the psychological harm caused by the insurer's conduct
Attorney's fees, because Texas law often requires the losing insurer to pay your legal costs in a successful bad faith case
Punitive damages may be awarded in cases of especially egregious conduct, in which courts intend to punish the insurer and deter similar behavior in the future

Unlike typical lawsuits, successful bad faith claims in Texas often result in the insurer paying your attorney's fees. This further levels the playing field between individual policyholders and large insurance companies.

Signs your insurance company is stalling

Knowing when a delay has crossed the line into bad faith is not always obvious, especially when you're already dealing with the stress of an injury or accident. There are some clear warning signs to watch for, though.

The most common indicators that an insurance company is deliberately delaying your claim include:

Repeated requests for documents you've already submitted
Sudden shifts in assigned adjusters midway through a claim
Responses that acknowledge receipt but provide no timeline or next steps
Inconsistent explanations for why a decision hasn't been made
Offers of lowball settlements accompanied by pressure to accept quickly
Complete silence for extended periods with no written explanation

Insurers have developed sophisticated delay tactics that technically comply with deadlines while still frustrating legitimate claims. They might acknowledge your claim on day 14, then immediately request volumes of unnecessary documentation. They might accept partial liability while disputing obvious covered damages, forcing multiple rounds of submissions. More reasons why you need an attorney like those from Thiessen Law Firm, who knows the insurance playbook front and back.

What to do when an insurance claim is taking too long

Don’t let them get the jump on you. If you suspect your insurer is dragging its feet, taking action early is vital. Here's what you do:

Document every interaction

Keep a written log of every phone call, email, and letter. Note the date, the name of the representative you spoke to, and a summary of what was said. Save every piece of correspondence. This documentation becomes your evidence if you ultimately need to file a lawsuit.

Send written follow-ups

Don't rely on phone calls alone. Put your requests for updates in writing, referencing the specific deadlines under the Texas Insurance Code. When you put the insurer on notice that you're tracking their compliance with the law, you often see faster responses.

File a complaint with the Texas Department of Insurance

The TDI investigates consumer complaints and can apply pressure to insurers who are failing to meet their obligations under state law. Filing a complaint also creates an official record of your complaint.

Consult a personal injury attorney

Insurance companies count on the fact that their large resource pools will scare off most policyholders. By hiring a personal injury lawyer who can rival their teams of attorneys and can persistently and professionally advocate for your rights, you give yourself a fighting chance.

For a bad faith claim, under Texas law, you will only have two years to file suit. The two-year limit begins from the date the unfair method of competition or unfair or deceptive act or practice occurred, or the date the person discovered (or by reasonable diligence, should have discovered) that the unfair act or practice occurred. Don't wait.

Is it worth suing an insurance company?

For many people, the idea of taking on a massive insurance company seems daunting or even pointless. But the reality is that Texas law is specifically designed to make bad faith lawsuits worth pursuing. Between the potential for 18% annual interest on delayed payments, recovery of attorney's fees, consequential damages, and the possibility of punitive damages for egregious conduct, the law heavily favors policyholders who have been screwed over.

That said, every case is different. The value of a bad faith lawsuit depends on the specifics of your claim, how long the delay lasted, what harm the delay caused you, and the quality of the evidence you've gathered. This is why consulting with a Houston personal injury lawyer before making any decisions is the most important step you can take.

At We Fight Giants, we take bad faith insurance cases on contingency — meaning you don't pay us unless we win. That's by design: we want you to be able to fight back against the insurance companies without worrying about upfront legal costs.

Insurance claim delays FAQ

Can I sue my insurance company for emotional distress?

Can you sue for emotional distress? Yes, in many cases. Texas law allows recovery for emotional distress damages in bad faith insurance claims, particularly when the insurer's conduct was egregious or caused significant psychological harm. If an insurance company's unreasonable delay or bad faith denial contributed to your emotional suffering, you may be able to sue them for that harm.

How long does an insurance company have to investigate a claim?

Under the Texas Prompt Payment of Claims Act, an insurer must acknowledge receipt of your claim within 15 business days, and must accept or deny your claim within 15 business days of receiving all required information. If they need more time, the insurer must provide a written explanation and may extend the deadline by up to 45 business days, but only with justification.

What is a bad faith insurance attorney?

A bad faith insurance attorney is a lawyer who specializes in holding insurance companies accountable when they fail to fulfill their contractual and legal obligations. At We Fight Giants, our attorneys handle bad faith claims involving auto accidents, truck accidents, wrongful death, and other personal injury cases where insurers have acted unreasonably.

Don’t let insurance companies run out the clock. Call us to fight the giants.

Insurance companies are businesses, and they know that time is often on their side. The longer they delay your claim, the more financially desperate you become, and the more likely you are to accept a lowball settlement just to get some relief. This is not an accident. It's their strategy.

We Fight Giants exists to level the playing field. Our attorneys know how the insurance industry works from the inside out, and we use that knowledge to fight for every dollar our clients are owed.

If you've been injured and your insurance claim is going nowhere fast, call Thiessen Law Firm at (713) 864-9000 or contact us online for a free consultation. Whether you’re dealing with insurance bad faith, need an attorney for a car accident in Houston, or a truck accident lawyer after a commercial vehicle accident, the giant slayers at Thiessen Law Firm can help.

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