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Answer: First, a little background: A statute of limitations is a law that limits the amount of time you have to file a lawsuit after you have suffered some type of loss or injury.
A statute of limitations is the term used by the legal system to define the time limits for initiating claims or other legal actions. These time limits will vary from state to state. For example, in California, you have the following amounts of time to file a lawsuit for cases regarding auto insurance: