Car accidents are stressful enough without the added frustration of waiting for an insurance company to pay a valid claim. Unfortunately, it’s common for insurance providers to delay settling claims, even when they appear straightforward. Whether you’ve been in a minor fender bender or a more serious accident, understanding why these delays happen can help you navigate the claims process more effectively.
One of the most common reasons for delays in claim payments is the need for a thorough investigation to determine liability. Insurance companies must establish who was at fault in the accident before paying a claim. Even if you believe the circumstances are clear, insurers will want to gather all necessary evidence, which can include:
This process can take time, especially if there are discrepancies between parties’ accounts of the accident or conflicting evidence. The more complex the accident, the longer it might take to assign liability.
Insurance companies are always on the lookout for fraudulent claims. Even though your claim may be valid, the insurer could delay the process to investigate if any red flags of fraud are present. Common factors that can trigger suspicion include:
Fraud investigations are often lengthy and can significantly slow down the settlement of your claim, even when no fraud is ultimately found.
Delays can also occur if your claim is missing important documentation. For example, the insurance company may request additional information if you’ve submitted incomplete forms or neglected to include all necessary supporting documents. The back-and-forth exchange of paperwork can result in significant delays. Ensuring you’ve provided all required documents from the outset, including medical records, repair estimates, and police reports, can help speed up the process.
If you sustained injuries in the accident, your insurance company might want to wait until you’ve completed all necessary medical treatments before finalizing your claim. This is because the full extent of injuries and related expenses may not be clear immediately after the accident.
In some cases, the insurer may request an independent medical examination (IME) to verify the extent of your injuries. These evaluations can lead to delays, especially if there are disputes between your doctors and the insurance company about the severity of your injuries or the necessity of treatments.
Insurance companies often experience internal backlogs, particularly during certain times of the year when claims volume is high. For example, insurers may be overwhelmed by the number of claims processed after major storms or during the holiday season. In these situations, even straightforward claims can be delayed simply due to the volume of work handled by the insurance company’s claims adjusters.
In many car accident claims, especially those involving personal injuries, there is room for negotiation regarding the settlement amount. Insurance companies are businesses and often try to settle for as little as possible to protect their bottom line. This back-and-forth negotiation process can prolong the time it takes to receive payment, particularly if you or your attorney are seeking a higher settlement than initially offered.
If you’re facing extended delays or believe the insurance company is acting in bad faith, seeking legal assistance may be your best course of action. Don’t let unnecessary delays compound the stress of an already difficult situation.
Don’t wait – get the support and legal representation you need today. Contact Meinhart & Manning for a free consultation by filling out our easy online form or call us at (877) 776-1219. Let us handle the legal process so you can focus on your recovery.