Why Do Car Insurance Companies Delay Paying Valid Claims?
As a car accident victim, you want the insurance claims process to go by as quickly as possible so that you can get your settlement right away and start to rebuild your life. Unfortunately, insurance companies often want the opposite. Delaying your payout has several advantages for an insurer that make this a common tactic used to take advantage of claimants.
What Are the Top Reasons Why Valid Claim Payments Are Delayed?
An insurance provider is a for-profit company with investors that want to make as much money as possible. Just like any for-profit business, an insurance company will always put its best interests first. This can make it difficult for car accident victims to receive fair payouts and be treated fairly during the claims process.
A valid claim may be delayed for many reasons that further the insurance company’s interests, such as:
- Maximizing profitability. Holding onto money owed by delaying a payment allows the insurance company to continue earning interest on these funds. High-value claims can make the insurance company money for every day they are delayed.
- Pressuring claimants. Withholding payment places pressure on car accident victims who are struggling to pay their bills. Financial stress from a drawn-out claim can lead to victims jumping at the first settlement offered, which is often less than the client deserves.
- Disputing the claim. Delays may occur as a result of the insurance company attempting to dispute or deny the claim. Examples include denying liability, requesting further evidence, and conducting an investigation for suspected insurance fraud.
If there is a question regarding liability or a complicated claim, such as a high-value claim for catastrophic injuries, these are valid reasons why an insurance company may request more time to investigate. Without an obvious cause or reason, however, car accident claim delays may be done in bad faith to earn more money for the insurer.
How Long Can an Insurance Company in Illinois Delay a Claim?
The State of Illinois has laws in place for how long an insurance company has to respond to a claim. The law states that insurance companies must respond within 15 working days of receipt of the claim, and are given 30 days to pay the full settlement amount once a claim has been approved. However, an insurance company has the option of requesting a longer investigative period with a valid reason.
What Can I Do About a Delayed Insurance Claim?
If a car insurance company is delaying paying out a claim that you believe is valid or has already been accepted, there are steps you can take to speed up the claims process and reach a resolution as quickly as possible while still protecting your rights.
Try these tips:
- Follow up with your insurance claims adjuster every few days to ask for updates.
- Request written updates for your records.
- If the insurer needs more time, ask why.
- Find out if there’s something you can do, such as providing more information.
- Submit all relevant evidence and documentation in a timely manner.
- If your insurance adjuster cannot be reached, ask to speak to a supervisor.
- File an official complaint with the Illinois Department of Insurance if you suspect bad faith or an unreasonable delay.
- Consider filing a bad faith suit against the insurance provider if it is handling your claim in a dishonest way.
When in doubt, contact a Chicago car accident attorney to help you with the claims process. An attorney can find out why your payout has been delayed, take over communications and negotiations with an insurance provider on your behalf, and bring legal action against the insurance company to force it to treat you fairly, if necessary. A lawyer will know how to resolve your car accident claim as efficiently as possible while maximizing your payout.