When an insurance company delays a claim settlement, it usually does so for one of three reasons:
- Additional paperwork, such as your medical records or the accident report, is pending.
- It believes you filed a bogus claim and wants to look into it further.
- It is acting dishonestly. If your company behaves in bad faith, it is hoping that you will either dismiss the claim or settle for a lower amount than it is worth.
Determine If The Company Is, In Fact, Stalling
Insurance firms would never be required to pay claims if they had complete control over the regulations.
Insurers would have little incentive to settle a claim if the judicial system did not exist. Even though it is against the law, they try hard to delay payment of claims for years.
Fortunately, legal rules exist that oblige insurers to resolve disputes within a certain amount of time. In most states, insurance companies are required to accept a claim within 10 to 30 days, and then reject or deny it within 30 to 40 days.
If the grace period has expired and the insurer has not made a decision, the insurer may be obliged to pay financial penalties in addition to the interest owed on your claim.
Keep in mind that state laws differ, and some states do not impose time limits. In this scenario, the best course of action is to speak with an experienced attorney to assess whether your insurance company is stalling—and, if so, what you may do to expedite the settlement process.
Do Your Part
There are a few things you may do on your own to assist keep the ball rolling if your insurance company is dragging its feet.
For starters, you may arrange all of your accident records and preserve them in one convenient area. Insurance adjusters have a bad reputation for misplacing essential documents or failing to seek them in the first place.
If the adjuster says, “Oh, well, we still need your medical record/police reports/statement,” you can look for the missing material and submit it to the agent while still on the phone. The following are some documents that you should keep:
- Photos from the collision
- Dispute-resolution reports
- Records of medical care
- estimations for repairs
- Contact information for witnesses
You should also keep track of all phone interactions you have with company agents, including the names of the agents you spoke with and the times you spoke with them. Print email correspondence for your records, and ask for copies of any documents the agent possesses.
Another option is to work together. You have a legal and contractual obligation to cooperate with your own insurance company if you have a claim against them. You must provide them with the information they require in a timely manner.
When the other party’s insurer is involved, things are different: they do not work for you, and you should be cautious in how you deal with them and what you tell them. If at all feasible, they will utilize information to take advantage of you.
Enlist An Attorney
If you believe your insurance company of acting in bad faith, or if you’re simply fed up with waiting for your claim to be resolved, it’s time to seek the advice of an experienced attorney.
Can you sue an insurance company for not responding?
We all know that an insurer’s standard operating procedure is to refuse claims and then ask follow-up questions, daring you to argue the decision.
But what if it’s just a series of questions? Or maybe you’re looking for documents? Then what? More documents? And you can’t seem to receive a decision on whether or not your claim will be funded, or if it will be denied?
Even before making an unfavorable claim judgement, insurers can be sued for unreasonable delay in the claim process.
If an insurer fails to investigate a claim in a timely manner, requires unreasonable types and/or numbers of documentation, or simply refuses to answer to calls, emails, or letters, you can take them to court to enforce your rights.
Insurers have long used delaying tactics to either persuade claimants to give up or to get a reduced settlement award on a claim.
Hiring an expert insurance bad faith attorney is the most effective way to avoid delays.
Insurers are unlikely to overlook an attorney with a track record of success in the areas of insurance coverage and bad faith.
If they do, an expert bad faith lawyer will know what to do and may file a case as soon as possible to safeguard your rights while also recovering damages.
How long does an insurance company have to settle with you?
This depends on the country and state that you reside in. In California, for example, insurance companies have 85 days to settle a claim after it is filed.
Before paying out the final settlement, Californian insurance companies must notice the claim and decide whether or not to accept it within a certain timeframe.
Can you sue insurance company for taking too long?
Having to deal with an insurance company that refuses to pay your claim adds salt to injury. You won’t be able to sue them if they take too long to pay.
Only the real losses you’ve suffered as a result of the accident can be sued for. You need an experienced personal injury attorney on your side if you haven’t been able to get your insurance company to settle your claim.
Are insurance adjusters honest?
NO is the common answer to this question. This is not to say that all insurance adjusters are untrustworthy. It’s crucial to keep in mind, though, that all insurance adjusters have a certain amount of allegiance to their company.
Because of this devotion, the adjustor may attempt to offer you the lowest feasible settlement so that the corporation does not lose money on your claim.
Many individuals have never heard of an insurance adjuster. If you make the mistake of believing that an insurance company is looking out for your best interests, you will almost certainly receive a lower payout than you deserve.
Why do lawyers stall?
Why does it seem like a personal injury case might stretch on indefinitely? It’s frequently due to defense attorneys’ attempts to stall the case for their own benefit. Why? The explanation lies in the plaintiff’s and defense lawyers’ competing agendas.
When you hire a personal injury lawyer, your lawyer and you both want to receive the most money possible in the shortest amount of time. Your bills must be paid, and the sooner you receive payment for your medical expenses, missed earnings, and other connected expenses, the sooner you can focus on recovering and moving on with your life.
Similarly, your personal injury lawyer will not be compensated until you have received a settlement or verdict. Because the fee is based on a favorable settlement, he or she will only be paid at the conclusion of the case.
The defense counsel, on the other hand, is on the other side of the table. Most of the time, he or she works for the insurance company that represents the entity you allege is to blame for your injuries. Their purpose is to drag the matter out as long as possible while paying as little as possible.
This earns more money for the attorney, who is paid by the hour, and can also help the plaintiff become frustrated enough to make a greater settlement for them out of desperation.
Why does it take so long for insurance to pay out?
To evaluate culpability and liability, insurance firms may perform a thorough investigation into an accident. This is one of the reasons why insurance companies may take a long time to pay out. However, this isn’t the only factor that can delay payment.
Delays can also be caused by damage reviews, contested claims, or even abusive claim settlement tactics. According to ISC 2601, certain discriminatory insurance practices are illegal in New York. If you consult with a lawyer on your case, they may be able to fight for compensation on your behalf in a personal injury lawsuit or an insurance claim.
Why do insurance adjusters take so long?
The adjuster assigned to the claim must be qualified to handle it and have sufficient time to investigate and reply. This assignment (or, in certain cases, reassignment) procedure can take longer than it needs to. The case load of the adjuster is the most prevalent reason for an insurer’s delay.
Do insurance companies talk to each other?
While insurance firms do not communicate directly with one another, they do share data. For example, a database called the Comprehensive Loss Underwriting Exchange gives all vehicle insurance providers access to your claims history (CLUE).
How do I ask my insurance company for a settlement?
You should contact your insurance carrier as soon as possible after an automobile accident. It’s critical to file a claim as soon as possible following an automobile accident so that you can precisely recollect the specifics of the incident. Your memories will be more accurate if you contact as soon as possible.
What happens if you disagree with an insurance adjuster?
If you are still unhappy with the judgment, you have the option of filing a complaint with the Financial Ombudsman Service (FOS) if you’re in the UK, or the CFPB Ombudsman in the United States.
Specific rules and deadlines will vary depending on the jurisdiction in which you reside. In Australia, for example, you have two years from the day the insurer made their final decision to accomplish this.
For consumers and insurers, these services aim to provide a fair and independent dispute resolution service.