Statute Of Limitations
What Does Statute Of Limitations Mean?
A statute of limitations is a specified time period during which a policyholder can file a claim for damages. If the claim is not filed within this period, the insurance policy will no longer cover the damages.
The term is also used more broadly to refer to the time frame within which a lawsuit can be filed in response to a particular harmful event.
Insuranceopedia Explains Statute Of Limitations
Statutes of limitations exist to ensure that incidents can be properly investigated for lawsuits or insurance claims. If a person waits too long to file, it becomes difficult to determine what happened. For instance, witnesses may forget details, and evidence of the damage may be repaired, replaced, or disappear.
In the case of a lawsuit, the statute of limitations for suing for damages following a car accident is typically two to three years in most states. If someone involved in a car accident wishes to sue another driver, they must file their claim within this time frame, or they will lose their right to sue.
It is crucial for policyholders to be aware of the statute of limitations in their policies to avoid missing the opportunity to file a claim due to waiting too long.
