By dragging out claims, insurance companies hope to wear down victims and convince them to accept a lower settlement than they deserve. Insurance companies use various tactics to delay claims and pressure victims, tactics our lawyers can help you identify.
Frequently switching adjusters, making redundant document requests, being nonresponsive to phone calls or emails, requiring unnecessarily long investigations, and questioning fault are all ways insurance companies drag out claims. If an insurer delays your claim in bad faith, you can file a lawsuit for the original full claim amount, as well as other damages.
Call The Queenan Law Firm’s Dallas personal injury lawyers at (817) 476-1797 for a free case evaluation.
Why Do Insurance Companies Drag Out Claims?
Many insurance companies are more concerned about their profits and success than the fair recovery of an accident victim. Dragging out claims is far more common than you might assume, and our lawyers can explain why.
The more time victims go without any compensation, the more desperate they might become to recover some damages. If you have medical bills, lost wages, or other expenses piling up and accruing interest, you might consider accepting any settlement, even if it is too low. This is the goal for insurers who drag out claims.
Our Austin, TX personal injury lawyers know the common tactics insurance companies employ to wear down victims and can identify when they are being used against you after an accident.
How Do Insurance Companies Wear Down Victims and Drag Out Claims?
One of the most common things insurance companies do to wear down victims and drag out claims is by stalling in any way they can. Claims can take longer when insurance companies switch adjusters, conduct unnecessarily long investigations, or intentionally ignore calls and emails from victims.
Switching Adjusters
Switching adjusters can drag out insurance claims. Each new adjuster assigned to the case will need time to get up to speed and review the claim. Switching adjusters repeatedly during the claims process can lead to delays that sometimes wear victims down, leading them to accept a lower payout.
Cases can switch adjusters for legitimate reasons, so this is not a guarantee that the insurance company is trying to drag out your claim. However, if the adjuster changes multiple times, it could be a sign of the insurance company’s bad-faith practices.
Redundant Document Requests
Insurance companies require extensive documentation to approve claims, including medical records, police reports, and other paperwork. Repeatedly requesting the same documents we have already provided is a common tactic insurance companies use to delay cases. Keeping track of everything we have sent to the insurance company on your behalf helps us respond to redundant document requests.
Ignoring Victims
Victims need to communicate with insurance companies to get the settlement they need. Insurance companies might intentionally be nonresponsive and fail to acknowledge phone calls or emails about the progress of the claim. Our Houston personal injury lawyers can get the attention of an insurance company that is ignoring you and causing additional financial stress by delaying your settlement.
Lengthy Investigations
The longer it takes for an insurance company to approve and payout a claim, the longer it takes a victim to get the compensation they need. To wear victims out and make them willing to accept almost any settlement, insurance companies might stall investigations and drag them out for far too long.
If your accident was relatively straightforward and the insurance company is still investigating after weeks or months, our lawyers can help.
Questioning Fault
Contributing to an accident could compromise your recovery, depending on your state. Insurance companies know this and might try to leverage your involvement and liability to get you to accept a lower settlement than you truly deserve. We can respond to unfair arguments of shared fault and assert your deserved recovery with evidence that shows you were in no way liable.
When Do Insurance Companies Wear Victims Down and Drag Out Claims?
Insurance companies might be more likely to drag out claims and try to wear victims down in certain scenarios, such as when a victim doesn’t have an experienced attorney to advocate for them.
Unrepresented Victims
Insurance companies might be more likely to stall or use other bad faith practices to compromise your claim if you do not have an attorney to represent you. Our lawyers know not to take the insurance company’s word at face value. We can push for better communication and compensation throughout the claim. Don’t make statements about your accident or injuries to the insurance company without a lawyer, as you might misspeak and jeopardize your case.
High-Value Claims
High-value claims could jeopardize insurance companies’ profitability more than claims involving minor injuries. In these situations, insurance companies might drag out claims in the hope that victims will accept lower amounts just to get some compensation, rather than the full amount they truly deserve for the severity of their injuries and the sum of their damages.
Approaching Statute of Limitations
Some insurance companies try to exploit the statute of limitations in bad faith insurance lawsuits by stalling claims for as long as possible. If you miss the statute of limitations, you might never get enough compensation for the accident or the damages you incurred due to the unnecessary delay of your case. We can confirm when the statute of limitations begins and ends and help you file within it.
What Should Victims Do if Insurance Companies Drag Out Claims?
Although victims might feel powerless when insurance companies drag out claims for far too long, there are steps you can take to get the compensation you need and deserve.
Get an Attorney’s Help
Insurance companies might be more likely to employ tactics to drag out claims when victims are not represented by experienced attorneys. With our lawyers in your corner, we can identify common delay tactics insurers use and address them head-on. You shouldn’t have to wait longer than necessary to get damages, so don’t let an insurance company keep you waiting. Having our help from the get-go may deter the insurance company from using any bad faith tactics.
Keep Accurate Records
Our lawyers can handle interactions with the insurance company and document all communications. Call logs, emails, and other evidence can prove the lack of communication from the insurance adjuster assigned to your case, as well as your attempts to communicate. Tracking this information becomes our responsibility when we handle your case, so all you have to focus on is your physical recovery.
Send a Demand Letter
We can write and send a demand letter to the insurance company if we see signs that it is intentionally delaying your case. A demand letter encourages settlement to avoid a lawsuit. Demand letters need to be convincing to be taken seriously and should be accompanied by evidence and supporting documents. We can write and send a persuasive demand letter to the insurance company, delaying your claim on your behalf.
File a Complaint with the DOI
Victims may also file a formal complaint against insurance companies with their state’s department of insurance (DOI) before pursuing litigation. The DOI will then decide whether to investigate and address the complaint. The insurer can reverse an unfair denial or pay the claim to resolve the complaint. You may be able to use this as evidence in a future bad faith lawsuit.
Can Victims Sue When Insurance Companies Drag Out Claims?
Insurance companies dragging out claims makes life harder for victims who need compensation. Intentionally delaying your access to damages is an act of bad faith by the insurance company, opening the door to civil litigation.
You may be able to sue an insurance company for intentionally dragging out your claim. Unreasonable delays, failure to investigate, denial of valid claims, and the only offer being a lowball one can all constitute acts of bad faith by insurance companies and lead to lawsuits.
The statute of limitations for bad faith lawsuits varies by state. We can confirm the filing deadline for your specific case and help you meet it. If you don’t file within the statute of limitations, you lose your chance to sue an insurance company for intentionally dragging out your claim.
What Damages Can You Get if an Insurance Company Drags Out Your Claim?
When insurance companies drag out claims and are held liable in bad faith insurance lawsuits, victims can recover more compensation than was initially available in the original claim.
Full Value of Original Claim
When you sue an insurance company for intentionally dragging out your claim and stalling your access to compensation, you can recover the full value of the original claim. You may recover the full amount payable under the policy through a bad faith insurance lawsuit.
Financial Losses from the Delay
You can also get compensation for any damages you incurred because of the insurance company’s stalling, such as hits to your personal credit score or interest accrued on unpaid accident expenses. These can be harder to identify without a lawyer’s help.
Statutory Interest
Victims can also recover statutory interest from the time the claim was made, increasing their compensation in a bad-faith lawsuit against an insurance company.
Non-Economic Damages
We can also help you seek compensation for any non-economic damages you incurred because an insurance company dragged out your claim and contributed to your pain and suffering. Non-economic damages can be hard to quantify in these cases, so get our lawyers’ help.
Punitive Damages
For egregious, fraudulent, or malicious misconduct while dragging out claims, insurance companies may have to pay punitive damages. Courts use punitive damages to punish insurance companies and deter others from engaging in similar behavior. You may only get punitive damages if your case goes to trial.
FAQs About What to Do When Insurance Companies Drag Out Claims
How Can You Tell if an Insurance Company is Dragging Out Your Claim?
Taking weeks to respond to emails or phone calls, requesting the same documents over and over again, frequently changing adjusters, and giving vague or contradictory explanations are all good signs that an insurance company is intentionally dragging out your claim and trying to wear you down.
Are Insurance Companies Allowed to Drag Out Claims?
Insurance companies have a legal responsibility to handle claims promptly. They may not intentionally drag out claims, misrepresent policies, or pressure victims to accept lowball settlements.
Should You File a Lawsuit if an Insurance Company is Dragging Out Your Claim?
You should consider filing a lawsuit if an insurance company is dragging out your claim and stopping you from being able to cover medical bills, lost wages, and other damages.
How Long Do You Have to Sue if an Insurance Company is Dragging Out Your Claim?
The statute of limitations dictates how long you have to sue if an insurance company drags out your claim through acts of bad faith, and we can confirm your state’s filing deadline.
What Evidence Do You Need to Prove an Insurance Company Dragged Out Your Claim?
Emails, letters, and other correspondence; denial letters; witness statements; ignored communication; and proof of additional interest or penalties from delayed payment can help us prove the insurance company dragged out your claim and that you deserve compensation.
What Are Other Acts of Bad Faith by Insurers?
Other acts of bad faith include misrepresenting policy amounts, unjustified claim denial, and pressuring victims to accept unfair settlements. You may also sue for these acts of bad faith and recover substantial damages.
Get Our Help with Insurance Companies After Accidents
Call (817) 476-1797 to discuss your case for free with the Plano, TX personal injury lawyers of The Queenan Law Firm.