How Long Does It Take for Allstate to Pay a Total Loss Claim in Chicago?

“How long does it take for Allstate to pay a total loss claim?” is a reasonable question, as the company has over 16 million clients across the United States. With its headquarters in Glenview, Illinois, it is one of the largest insurance companies in the Chicagoland area.

In 2023, there were 101,02394 car accidents in Chicago, meaning thousands of people had to make claims with Allstate Insurance for compensation.

As Illinoisans are required to have car insurance (§625 ILCS 5/7-601), many choose to work with a local company, believing this will speed up their claim. While Allstate Insurance is known for fast claim processing, potentially providing payment within a few weeks, it typically begins with lower settlement offers.

To negotiate a fair settlement, work with a Chicago car accident lawyer from our team who can advocate for your best interests. In this article, we will define total loss claims with Allstate, discuss the settlement process in personal injury cases, and explain how to speed up the process.

What is a Total Loss Claim?

In a car accident claim, a total loss occurs when the cost of repairs exceeds the car’s actual cash value (ACV) or when the damage is so extensive that it cannot be safely repaired.

The threshold for declaring a total loss varies by state and auto insurance company, but for Illinois, it is usually 70-75% of the ACV. In such cases, the company will provide you with the ACV minus any deductible in your insurance policy.

The average value of a car in Chicago, IL, is $24,657. Therefore, if the vehicle has damage of around $18,000, it will typically need to be replaced.

In some cases, the total loss occurred outside anyone’s control, such as a fire, falling objects, collisions with animals, or natural disasters. If so, the claim may be processed under comprehensive coverage rather than liability insurance.

Car Accident Settlement Process for Total Loss

Auto accident cases can be complex, especially with severe property damage and bodily injury. However, the basic steps include the following:

• Filing a claim
• Vehicle inspection
• Receiving the initial offer
• Negotiations
• Trial (if negotiations fail)
• Signing over the title of your vehicle (once you agree to the offer)
• Receiving the payment

When negotiating, the claimant needs to know how much the repairs will cost. You can contact local body shops, such as Gold Coast Auto Body or Chicago West Loop Collision Repair, to get an estimate, which will then be calculated against the ACV.

Illinois outlaws bad faith insurance policies, or those that are considered “vexatious and unreasonable” (§215 ILCS 5/155). These include failing to investigate a claim, offering low settlements, and denying a claim without any basis. This is more common when you are filing with your own insurance company, such as when the at-fault driver didn’t have insurance.

In these cases, the claimant can complain to the Illinois Department of Insurance, which will investigate and determine a course of action.

Factors Affecting the Insurance Company Timeline

Several factors impact Allstate’s time to pay a total loss claim. These factors can include the complexity of the claim, car inspection delays, title issues, and available information.

The cooperativeness of all included parties is also a significant factor, as it can expedite or drag out negotiations and trials. Once you agree to the settlement amount, the payment usually arrives within days.

Allstate’s Claim Handling Process

The Allstate claims process includes initial reporting, adjuster assignment, valuations of vehicle and repair costs, negotiations, and payment.

Initial Claim Reporting and Assignment

When Allstate receives your total loss claim, it will assign an insurance adjuster, your primary contact during the process. They will review the details of the accident, including police reports, photos, and other evidence. As Chicago requires you to report any crash that results in more than $250 in property damage (§9-56-010), you may not be able to submit anything if you don’t have a report.

Before speaking to the Allstate adjuster, we recommend a free consultation with a personal injury attorney, as your insurance company or the defendant’s insurance company may try to minimize your damages.

Vehicle Inspection and Appraisal

An adjuster or a certified appraiser will assess the damage to your vehicle to determine whether it’s a total loss and its ACV.

The ACV is calculated based on your car’s current market value and factors like age, condition, mileage, and resale value in your area. The adjuster will also compare the repair costs to the ACV, including parts, labor, and towing costs. They will determine if the repair costs exceed the Illinois total loss threshold, which is 70-75%.

If you’re also filing a personal injury claim to cover your medical expenses, Allstate will coordinate with your health insurance company to assess the case. Allstate uses a pain and suffering calculator, Colossus, which the company uses to determine the amount to pay in the claims process.

In 2010, Allstate was forced to compensate 45 states with $10 million due to undervaluing pain and suffering damages.

Settlement Offer and Negotiation

Allstate will present you with an initial settlement offer based on the ACV and possible negotiations. The offer will outline deductions and loans that may impact the total settlement amount. However, in many cases, the offer may be lower than what you deserve.

Luckily, you can dispute the offer by providing evidence like market prices in your area and proof that you upgraded or repaired the vehicle before the accident. You may need an attorney to help you deal with the insurer’s lawyers and their aggressive attempts to reduce your damages. This intervention often leads the insurer to reevaluate its low offer.

Finalization and Payment

Once you review and agree to the company’s offer, you will inform Allstate that you accept the settlement.

After that, you will release the vehicle title, making it Allstate’s property, and complete the necessary paperwork. The company will then pay you the agreed-upon amount, usually as a check or a direct deposit.

Factors Impacting Allstate’s Payment Timeframes

If you suffered serious property damage and bodily injury, you need to have Allstate pay for your damages as soon as possible. The time it will take for you to recover compensation will depend on several factors.

Complexity of the Claim

More complex claims typically require more time. The severity of the accident is a significant factor, especially when the damage is extensive or multiple parties are involved. Such situations prolong the investigation, evidence gathering, and the time needed to locate and interview witnesses.

More severe car accidents often take longer to process due to medical care, physical therapy, the time it takes for the injured parties to recover, and calculating the costs of ongoing medical bills and future medical treatment. It may also be more difficult to determine liability.

Availability of Information

Readily available documentation, such as police reports, medical records, and repair estimates, can speed up the settlement process. This information allows the adjuster to assess liability and damages more quickly and determine whether the vehicle is a total loss.

When the case is complex, it may also require expert opinions. You may need to call accident reconstructionists or medical professionals to strengthen your case.

In addition, having the documents ready means the adjuster can start processing the claim more quickly, and the negotiations can start earlier. Finally, when all parties negotiate based on clear facts, they are more likely to cooperate and come to an agreement.

Cooperation of Involved Parties

Timely responses from claimants, witnesses, and others are vital in speeding up the settlement process. Quick witness statements can make the investigation more efficient and help the parties determine liability faster, while claimants who offer information quickly also help the process.

In some cases, the insurer causes delays, such as when only a limited number of adjusters are available.

Disputes and Negotiations

More severe accidents may lead to disputes over liability, repair costs, or vehicle value, increasing negotiation time and complicating the settlement process. Challenges regarding the following usually cause delays:

• Liability – If there is uncertainty about who is at fault, the insurance companies may need additional time to investigate, gather evidence, and analyze witness statements.
• Negotiations – Negotiations are also longer when parties disagree about liability. Each side will present its case, which can lead to many back-and-forth discussions.
• Valuation – If you believe the Allstate claim representative’s estimate is too low, it will take time to dispute their assessment.
• Review processes – A complex disagreement often requires upper-level managers or legal teams to resolve it, further prolonging the process.
• Suing Allstate – If you believe the company is unreasonably denying you your rightful claim, you may be able to sue Allstate. Your rights are important in personal injury claims, as injured parties often suffer serious medical and emotional distress.

State-Specific Regulations

Illinois requires insurance companies to provide the necessary forms for an insurance claim within 15 business days of a request (§215 ILCS 5/357.7). If your car is a total loss, you can only keep it if it is nine years or older (§625 ILCS 5/3-117.1); however, the company can still choose to require you to give up the vehicle and title.

After agreeing to an offer, the company has 30 days to make payment (§215 ILCS 5/357.9). If they don’t pay within this timeline, then they may owe you up to 9% annual interest.

If you have a dispute with the company, then you can file a complaint with the Illinois Department of Insurance, which will open an investigation.

Average Timeframes for Allstate Total Loss Claims

The time it takes for the claim to be processed depends on your case. If your case involves only property damage and not personal injury, you may get a settlement offer within a few weeks.

However, if you have been injured or the case is more complex, the settlement process can last several years.

Typical Timeframes

The following are estimated timelines for each stage of the process, but keep in mind these are averages and may vary depending on individual circumstances.

• Filing a claim – Initiate this process as soon as possible, preferably with legal representation. If you have all the information (damages, contact information, police reports), filing should take no more than a day. The company representative should give you a rough estimate of the timeline for the claim process.
• Initial review – It can take up to two weeks for Allstate to assign an adjuster.
• Investigation – On average, an investigation can last between one and six weeks, but more for complex cases.
• Damage assessment – It can take one to three weeks to assess the damage to your vehicle.
• Initial settlement offer – You should receive a settlement offer two to four weeks after the valuation.
• Negotiation phase – It can take months to years, especially if the case goes to trial.
• Finalizing the settlement – Allstate processes the payments quickly after you sign the paperwork and agree to the offer.

Potential Delays

Delays are unfortunately possible, and they are often caused by:

• Backlogs – Wait times are longer when Allstate experiences backlogs due to a high number of claims.
• Complex investigations – These are common in cases involving multiple parties, extensive damage, personal injury, or other complications.
• Disputes – Disputes over liability can prolong each stage of the process, from investigation to finalization.

Expediting the Process

Although filing a claim may seem frustrating and overwhelming, several things can expedite the process. These include providing timely information, cooperating with the adjuster, being proactive, and hiring legal representation.

Promptly Provide Information

Allstate will require detailed information and documentation to process your claim. Respond to each request quickly and prepare for the process in advance—take photos of the damage and the car’s position after the accident, retrieve contact info from the other party, and contact a lawyer who can obtain the necessary documents quickly.

This step will ensure timely communication, making negotiations more manageable.

Maintain Communication with the Adjuster

Communicating openly and proactively with the assigned adjuster speeds up your case and helps its outcome. It builds rapport, clarifies expectations, and allows you to address concerns quickly.

Seek Legal Assistance

A personal injury lawyer can speed up the process and ensure you’re treated fairly. They can:

• Offer guidance – A personal injury lawyer can guide you through the legal process, deal with deadlines, and help you present your case effectively.
• Gather documentation – Lawyers are skilled at gathering and organizing necessary documentation, such as medical payments, police reports, and witness statements.
• Negotiate – An experienced lawyer will know how to defuse insurance adjuster tactics, such as low offers, delaying, or disputing claims.
• Handle disputes – If you have disputes about liability or damages, a personal lawyer can handle them professionally, saving you time and stress.
• Be your representative – Insurers are often more inclined to settle fairly and quickly when they know a lawyer is involved.

Expert Legal Counsel for Your Allstate Insurance Claim!

Allstate Insurance may delay claims, minimize damages, and utilize other tactics to pressure the claimant into accepting a low offer. These tactics can be highly frustrating, especially if you’ve been in a severe accident and need the settlement money to cover medical damages, lost wages, and a totaled car.

Contact Rosenfeld Injury Law if you’re experiencing unreasonable delays or other issues in the claims process. A Chicago auto insurance claim lawyer from our team can explain your legal options during a free consultation and help you pursue justice and recover compensation.

Call (888) 424-5757 or fill out our online contact form for a free case review.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.