This article contains seven things to do if an insurance company is stalling. Kindly read down to find out
Dealing with an unreasonable insurance provider is never a pleasant experience because it usually means you were involved in an accident and suffered damage to property or, worse, injury.
You want to get back to normal life as soon as possible after the incident, but what can you do if your insurance provider takes forever to process your claim? You can do a few things to speed up the claims process, but if you have everything in order and the insurance company is still stalling, you may be dealing with a bad faith claim.
Why Do Insurance Companies Stall on Claims?
Insurance companies may stall claims in the hopes that you will become frustrated and impatient and drop the claim. This is referred to as acting in bad faith.
However, there are some legitimate reasons why your insurer may refuse to process a claim:
You may be asked to provide additional information by the insurer
Perhaps they’re awaiting a medical report, or an accident report completed by police following a car accident. Always ask your insurer what information they require from you so that you can provide the necessary documentation and help your claim move along more quickly.
They believe the claim is fraudulent and require additional time to investigate it. When this occurs, you must work with a New York personal injury lawyer who can protect your rights and, if necessary, fight back against the insurer’s claims.
Signs That Your Insurance Provider Is Stalling Your Claim
If you don’t deal with insurance companies frequently, it can be difficult to recognize their stalling tactics, and if you’re the one who needs the repair money, it can be very tempting to accept whatever they offer you as soon as possible. Read through this list so you can recognize the warning signs of stalling before they occur and avoid falling for their tricks.
- Rather than requesting all of the documents at once, the insurer is asking for them one at a time.
- They reject a perfectly legitimate claim outright.
- Constantly requesting unnecessary additional paperwork and documentation.
- Several claims that the business hasn’t yet made a decision regarding your case.
- Requesting unnecessary or intrusive medical records.
- Constantly requesting more information from service providers about your medical care or property damage resulting from the claim.
- Misrepresenting the laws that apply to your case and how it is handled, or outright lying about these laws.
- An insurance adjuster who ignores your calls or doesn’t return your messages.
- Changing insurance adjusters on your claim more than once in the hopes that the new adjusters will overlook something and force you to accept a lower settlement.
Things To Do If Your Insurance Company Is Stalling
Use these strategies to restart things if you see one or more signs of stalling from your insurance company.
- Be persistent
The simplest way to get through to a stalling insurance adjuster is to call or email them repeatedly. Ask about the status and when you can anticipate results during each call. Nobody enjoys working with “stubborn” clients, so that may be why you receive fair compensation.
- Keep Your Evidence Safe
You should keep your evidence in a secure location from which you can easily access it. Keep a backup in your preferred cloud platform and a copy on a storage disk if it’s a digital file. Remember that the strength of your case will determine the amount of your compensation.
- Get multiple estimates
If your insurance attempts to undervalue repairs, obtain multiple estimates from reputable car repair facilities or construction firms. This makes it easier for you to show how ineffective the suggested compensation package is.
- Mention Bad Faith during the hearing
Insurance companies are required to assist their customers in overcoming unforeseen expenses as quickly and easily as possible. If this does not occur, the jury might find that the insurer acted in bad faith and order them to pay the complainant’s attorney fees in addition to the settlement.
- Write a Formal Complaint
Sending a formal complaint to the insurers is another effective way to get their attention. Inform them that you’ve been waiting far too long and that the unexpected expense hasn’t caused you to recover. A copy of this letter should be saved because it can be used as proof if the stalling persists.
- Request a meeting with the supervisor:
If you keep receiving justifications, it’s time to resolve your complaints and meet with the supervisors. Make a call to any public phone number the business posts online, then request to speak with a supervisor. The case will get the attention it needs in this way, and hopefully, fair compensation will follow.
- Work with the insurer cooperatively
Some people constantly seek out conflict when they want something done their way. Be the opposite of that. The idea is to express your concerns positively while also paying attention to what your insurance adjuster says. Don’t forget to send paperwork and be on time for appointments.
- Work with an attorney:
An attorney will be able to tell when the insurance company is being unreasonable with its delays and when the adjuster needs more time to complete the job. This expert will also try to settle the case for the best possible amount because they know the legal system. You won’t ever need to contact the insurance company again or put up with any stalling.
Common Types of Claims Insurance providers Stall On
Unfortunately, insurance providers are known for stalling claims regardless of the nature of the problem. We’ve seen it a lot, from accident victims to homeowners, and it’s still a common practice for insurers, and it probably always will be as they try to protect their bottom line. The following are some of the most common types of claims that insurance companies stall on:
- Homeowners insurance claims
- Insurance claims made by commercial property owners
- Automobile, truck, and motorcycle accident claims
- Hail and storm damage claims
- Personal injury claims
Conclusion
Insurance is a form of protection. It’s not uncommon for insurers to stall on claims, regardless of the type of accident you’re in or whether you’re filing a claim with your own insurer or someone else’s. They do this to protect their profits rather than to assist accident victims.
If your insurance company is delaying/stalling your claim, you should be aware that there are actions you can take. This article is all that you need.
FAQS
What should I do if an insurance company is stalling on my claim?
If an insurance company is stalling on your claim, it is important to take the following steps:
- Contact your insurance company to inquire about the status of your claim.
- Request a written explanation for the delay.
- Keep detailed records of all communication with the insurance company.
- Consult with a lawyer to understand your rights and options.
- File a complaint with the state insurance department.
- Consider hiring a public adjuster to help with your claim.
- If necessary, consider taking legal action against the insurance company.
How do I know if my insurance company is stalling on my claim?
If you feel that your insurance company is taking too long to process your claim or is not responding to your inquiries, it may be stalling. Other signs of stalling include frequent request for additional information, unreasonable delays in processing your claim, and failure to explain the delay clearly.
What is the reason behind an insurance company stalling on a claim?
There are several reasons why an insurance company may stall on a claim. These can include a high volume of claims, a lack of resources, a dispute over the amount of coverage, or a dispute over the cause of the loss. In some cases, the insurance company may delay the claim to reduce its payout.
Can I file a complaint against an insurance company for stalling on my claim?
Yes, you can file a complaint against an insurance company for stalling on your claim. You can file a complaint with the state insurance department, which regulates insurance companies in your state.
What happens if the insurance company is still stalling after I file a complaint?
If the insurance company continues to stall after you have filed a complaint, you may need to take legal action against the company. This could include filing a lawsuit or seeking the assistance of a mediator.
Is it necessary to hire a lawyer if an insurance company is stalling on my claim?
While hiring a lawyer if an insurance company is stalling on your claim is unnecessary, it may be helpful to have a legal expert review your case and advise you on your rights and options. A lawyer can also help you navigate the legal process if you decide to take legal action against the insurance company.
Can I hire a public adjuster if an insurance company is stalling on my claim?
Yes, you can hire a public adjuster if an insurance company is stalling on your claim. A public adjuster is a professional who specializes in helping policyholders navigate the claims process and negotiate a fair settlement with the insurance company. Hiring a public adjuster can be especially helpful if you are having trouble communicating with the insurance company or feel your claim is not handled fairly.
About Author
- I’m a firm believer that information is the key to financial freedom. On Coindecimal Blog, I write about personal finance and crypto.
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