Why Do Insurance Companies Delay Paying Valid Claims?

Insurance companies can be some of the most frustrating organizations to work with if you have to file an insurance claim. One of the most challenging aspects of working with adjusters is their unwillingness to act quickly. They may delay and constantly push off deciding on your claim. Why do insurance companies delay paying valid claims?

The ultimate reason for delaying decision-making comes down to their objective in not paying as much for the accident as you expect. Delays lead to a higher potential for reduced claims, protecting their profits. Consider some of the common reasons this occurs, as explained by a Nashville personal injury lawyer.

Delays May Push You Beyond the Statute of Limitations

The Tennessee statute of limitations creates a one-year limitation on your ability to seek a lawsuit against the at-fault party. This means in most cases, you have to heal enough to know what your long-term injuries and losses will be, try to get a settlement, and then file a lawsuit in court within a year of the accident.

Insurance companies know they can push you beyond that statute of limitations if you are not knowledgeable about this law. Once that timeframe expires, you no longer have a way to force them to pay your losses. One year is not a very long period of time, especially for serious injuries.

Frustrating You Makes You Settle

By delaying making a decision on your claim, the insurance company is also creating frustration. They know you need financial compensation now to pay your bills and meet your needs, especially if you are out of work for a long time. By delaying the claim, you become annoyed but also desperate. That is when they know you will settle quickly on their next offer.

This is often a way to get you to settle for less than you are owed. You may believe that getting something is better than nothing. That is a tactic they are using to push you beyond what is owed to you.

Signs The Insurance Company Is Delaying Claims

It does take time for insurance companies to process claims, but if you are experiencing any of the following situations, it may be the case that they are purposefully delaying deciding on your claim:

• Constantly asking for more information, additional medical documentation, or clarification on your claim request
• Switching from one insurance adjuster to another, often with a reason of internal changes that have nothing to do with your case
• Not returning your calls for long periods of time and not responding to multiple requests
• Questioning your claims about injuries, even though they have clear documentation of what occurred
• Sending you a counteroffer that is a fraction of what you know your case may be worth

Even if you are unsure that they are intentionally causing delay, take action right away. The best thing you can do is to hire an attorney who they cannot push around.

Seek Legal Support as Soon as Possible

If you are facing insurance company delays and denials, hire a personal injury lawyer. That act alone can help push your case through because the insurance company knows they have to take your case seriously. Your Nashville accident attorney will put pressure on the insurance company to act and will be able to swiftly file a lawsuit when they treat you poorly. Contact us for a free consultation today.