Short Answer

North Carolina law does not set a single, hard deadline for every auto claim. Your insurer must investigate promptly and, within a reasonable time after it has the information it needs, affirm or deny coverage and explain its decision in writing. If it needs more information or more time, it must tell you why and keep you reasonably informed. Unreasonable delay can violate North Carolina’s unfair claim practices law.

Understanding the Problem

You’re the insured in North Carolina asking: when someone files a claim against my auto policy, how quickly must my insurer decide and notify me if it is accepting or denying coverage? Here, you’ve already received notice that a claim was filed against your policy, and a police report says the other driver was at fault. You want to know what timeline applies and what communication you should expect.

Apply the Law

Under North Carolina law, insurers must handle claims promptly and fairly. For liability claims made against you, your insurer owes duties under your policy to investigate, defend you if coverage applies, and decide coverage within a reasonable time once it has the essential facts and documents (often called “proof of loss” or equivalent claim information). If the insurer cannot decide yet, it should explain what is missing, communicate its position (including a reservation of rights if applicable), and keep you updated at reasonable intervals. A denial must state specific reasons tied to policy terms.

Key Requirements

• Prompt acknowledgment and investigation: The insurer must respond and begin investigating without undue delay after notice of the claim.
• Reasonable-time decision after needed information: Once the insurer has the facts it reasonably needs, it should affirm or deny coverage within a reasonable period.
• Clear written communication: The insurer’s decision (or interim “reservation of rights”) should be in writing and explain the reasons with policy references.
• No unfair delay: Prolonged, unexplained delays or failure to act on available information can violate North Carolina’s unfair claim settlement practices rules.
• Ongoing updates if undecided: If more time is necessary, the insurer should tell you what it is waiting for and provide status updates at reasonable intervals.

What the Statutes Say

• N.C. Gen. Stat. § 58-63-15(11) (Unfair claim settlement practices) - prohibits unreasonable delays, requires prompt investigation, and bars failing to affirm or deny coverage within a reasonable time after receiving necessary information.

Analysis

Apply the Rule to the Facts: A claim has been filed against your auto policy. Your insurer must promptly investigate and then, within a reasonable time after it has what it needs (e.g., the police report, statements, and any requested documents), either accept coverage and defend you, deny coverage with reasons, or reserve rights while it completes the investigation. The police report suggesting the other driver was at fault may speed things up, but the insurer still must verify facts before deciding.

Process & Timing

1. Who files: You or your attorney. Where: Your insurer’s claims department/adjuster in North Carolina. What: Provide notice of claim (claim number), your cooperation, and any requested documents or statements; request a written coverage position or reservation-of-rights letter. When: Do this promptly after receiving the claim notice.
2. The insurer investigates (reviews the police report, interviews drivers/witnesses, evaluates policy terms). Expect written updates if a decision is not ready; timing varies with claim complexity and availability of information.
3. Outcome: The insurer issues a written decision—accepts and defends, denies with reasons, or continues under a reservation of rights with ongoing updates until a final decision is made.

Exceptions & Pitfalls

• If you delay cooperation (missing statements, documents, or exams), the insurer may delay a decision.
• Coverage questions (lapsed policy, exclusions, unauthorized drivers) can justify a reservation of rights while facts develop.
• A reservation of rights is not a denial; it allows the insurer to defend while it reviews coverage.
• If the insurer goes silent or unreasonably delays, you can request a written timeline and consider contacting the North Carolina Department of Insurance.

Talk to a Personal Injury Attorney

If you’re dealing with delays or unclear answers on a claim filed against your auto policy, our firm has attorneys who can help you understand your options and timelines. Reach out today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.