GITNUX MARKETDATA REPORT 2024

Underinsured Motorist Claim Settlement Duration Statistics

Underinsured motorist claim settlement durations typically range from a few months to a year, with an average processing time of approximately six months.

Last Updated: June 23, 2024

Written & Summarized by: Jannik Lindner

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In this post, we explore the various statistics surrounding underinsured motorist claim settlement duration. From the impact of digital claim processing to the influence of attorneys and streamlined claim departments, a range of factors can affect how long it takes for these claims to be resolved. Understanding these statistics can provide valuable insights for both claimants and insurers navigating the complexities of underinsured motorist claims.

Statistic 1

"The introduction of digital claim processing is expected to reduce settlement durations by 15-20%."

Statistic 2

"Mediation and arbitration cases for underinsured motorist claims typically conclude within 6-12 months."

Statistic 3

"25% of claimants experience delays due to disputes over policy interpretation."

Statistic 4

"35% of underinsured motorist claimants report a settlement duration of over two years."

Statistic 5

"Use of an attorney can reduce the settlement duration by up to 40% due to professional negotiation."

Statistic 6

"Insurers with streamlined claim departments show 25% quicker settlement times."

Statistic 7

"On average, first-party underinsured motorist claims are settled 20% faster than third-party claims."

Statistic 8

"Claim settlements are faster in states with compulsory mediation for underinsured motorist disputes."

Statistic 9

"Claims are predominantly settled faster in urban areas compared to rural locations."

Statistic 10

"60% of underinsured motorist claim settlements take longer than six months to resolve."

Statistic 11

"Underinsured motorist claims settlements involving multiple parties typically extend up to 50% longer."

Statistic 12

"Underinsured motorist claims involving litigation extend settlement time by at least 6-9 months on average."

Statistic 13

"45% of underinsured motorist claims require medical evaluations, lengthening the settlement process."

Statistic 14

"Settlements for underinsured motorist claims without disputes are often finalized within 3-6 months."

Statistic 15

"The involvement of uninsured motorist protection policies generally quickens settlement processes by up to 30%."

Statistic 16

"The average duration for settling an underinsured motorist claim is approximately 12-18 months."

Statistic 17

"Claims involving severe injuries take an additional 12-24 months for settlement on average."

Statistic 18

"States with no-fault insurance laws generally have quicker settlement durations for underinsured motorist claims."

Statistic 19

"55% of claims face delays due to the need for additional documentation from the claimant."

Statistic 20

"Approximately 50% of claimants receive partial settlements within six months before final resolution."

The duration of underinsured motorist claim settlements varies significantly based on various factors such as the use of digital claim processing, involvement of attorneys, streamlined claim departments, compulsory mediation, urban versus rural locations, policy disputes, multiple parties, litigation, medical evaluations, uninsured motorist protection, severity of injuries, and state insurance laws. Overall, the statistics suggest that implementing digital processing, utilizing attorneys, having efficient claim departments, resolving disputes promptly, and ensuring comprehensive documentation can help expedite the settlement process. However, claims involving complex issues or severe injuries tend to take longer to settle. It is important for claimants to be proactive, provide necessary information promptly, and seek legal guidance when necessary to potentially accelerate the resolution of underinsured motorist claims.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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