If you’ve received a settlement check from an insurance company after a car accident, property damage claim, or injury settlement, you might be wondering: how long is an insurance check good for? While holding onto it for a while is tempting, it’s important to know that these checks aren’t valid forever.
Standard Validity of Insurance Checks
Most insurance settlement checks are valid for between 90 and 180 days from the date they’re issued. The exact time frame depends on:
- The insurance company’s policies
- The issuing bank’s rules
- State regulations regarding check validity
Many checks have a “void after 90 days” note printed directly on them. Banks may refuse to accept stale checks, even if this isn’t listed. Always read the fine print to see if a specific expiration date is included.
What Happens if You Don’t Deposit Your Check Right Away?
If you wait too long to deposit your insurance check, it can become stale-dated. This means:
- The bank may refuse to cash or deposit it.
- You’ll need to request a reissued check from the insurance company.
- Reissuing a check can take days or weeks, delaying your access to funds.
Additionally, insurance companies may close out old claims after a certain time. If that happens, you could face extra steps to reopen your file and confirm you’re still owed payment.
Why You Should Deposit Your Check Quickly
Even though insurance checks may technically be valid for up to 180 days, it is best to deposit them as soon as possible to avoid complications.
Before depositing your check:
- Review it for accuracy, ensuring your name and amount are correct.
- Confirm with your attorney if you owe liens, medical payments, or legal fees from the settlement.
- Contact the insurance company if the check was damaged in the mail or appears altered.
After depositing your check:
- Keep a copy of it for your records.
- Monitor your bank account to confirm the deposit clears.
- Avoid spending settlement funds until they are fully available to prevent overdraft fees or payment issues.
Depositing your check quickly ensures that the settlement process comes to a close smoothly and that you can pay medical bills, car repairs, or other costs related to your claim without delay.
Can Insurance Checks Expire Completely?
If a check is not deposited within the issuing period and too much time passes, insurers may close your claim file. This does not necessarily eliminate your right to the funds, but it can:
- Require reopening your claim with additional paperwork
- Involve proving your identity and entitlement to the funds again
- Cause long delays before you receive a new payment
In rare cases, if years pass without cashing your check, the funds may be turned over to the state as unclaimed property. Recovering them then involves a formal claim with the state controller’s office, which can take a significant amount of time.
What If You Have a Joint Check?
Sometimes, settlement checks are issued jointly to you and your attorney or a medical provider. If so:
- Both parties must endorse the check before it can be deposited.
- Your attorney will handle distribution after deducting fees or paying liens.
- Delaying endorsement or communication can hold up your payment.
Always coordinate promptly with any joint payees to ensure funds are released quickly.
