You’ve done everything right. You reported the accident, filed your claim, and provided the necessary documents. So why is your case going nowhere? The reality is that insurance companies are businesses, and their primary goal is to minimize payouts. To do this, they often employ a range of insurance company delay tactics that leave injured victims feeling helpless and frustrated. From “losing” your paperwork to constantly switching adjusters, these methods are designed to create confusion and pressure you into accepting an unfair offer. Here’s what you need to know to hold them accountable.
When an accident occurs, your insurance company should work with you to settle your claim. A common practice of insurance companies is to prolong a claim to trick you into accepting a smaller settlement than you would deserve. By being aware of the tactics insurance companies employ to stop settlement negotiations, you can help your California personal injury lawyer to continue working on your personal injury case later.
Your Claim may be Stalled by Your Insurance Company
Even though it is the insurer’s responsibility to honor your contract, some adjusters stall the claims process and deny payment. In order to avoid paying the amount that you are owed, standard delay tactics are employed. Here are the steps you need to take when your injury case is getting nowhere.
What Causes Insurance Companies to Delay?
There are a number of reasons why an insurance company might stall a case:
The “Delay, Deny, Defend” Strategy
This is a well-known playbook in the insurance industry, designed to protect the company’s bottom line, not your well-being. It’s a three-pronged approach that systematically works to minimize the amount they have to pay out on claims, whether it’s for a car accident or a slip and fall. Understanding these tactics is the first step in protecting your rights and fighting back against an unfair process. When you see these strategies in action, you’ll know it’s not just you—it’s a calculated effort to wear you down and pay you as little as possible.
Delaying to Wear You Down
The first tactic is delay. Insurance companies know that after an accident, you’re likely facing mounting medical bills, lost wages, and the stress of recovery. They exploit this by deliberately dragging out the claims process. You might find them repeatedly asking for the same documents, “losing” your file, or simply ignoring your calls and emails for weeks. This isn’t just poor customer service; it’s a strategy. The goal is to exhaust your patience and increase your financial desperation, hoping you’ll eventually give up and accept a quick, lowball settlement that is far less than what your case is actually worth.
Denying to Protect Profits
If delaying tactics don’t push you to accept an unfair offer, the insurance company may move on to the next step: denial. They might deny your claim based on a technicality, argue that your injuries aren’t as severe as you say, or even suggest the accident was your fault. It’s important to remember that a denial is often a negotiation tactic, not the final word. Some insurance companies have even been known to offer bonuses to adjusters who successfully deny claims, which shows where their priorities lie. This can be especially frustrating in cases involving complex injuries, like traumatic brain injuries, where the full extent of the damage isn’t immediately obvious.
Defending to Discourage You
The final phase of this strategy is to defend their position aggressively if you continue to fight for fair compensation. Insurance companies have immense resources, including large teams of experienced lawyers, and they are fully prepared to take a case to court. They count on the fact that the average person will be intimidated by the prospect of a legal battle and the costs involved. Their hope is that you’ll feel overwhelmed and drop your claim altogether. This is precisely why having a dedicated legal advocate on your side is so critical. An experienced attorney can level the playing field, showing the insurer you won’t be scared into submission and can help you understand your options during a free consultation.
The Company’s Policies
It’s possible that the insurance company has a habit of consistently denying claims. By postponing many of the claims against themselves, the insurance company may strive to maximize earnings.
Victims’ Discouragement
The insurance company may decide to put the case on hold in the assumption that you will give up. They may try to scare you by causing delays. They may also stall in the expectations that you will become sick of waiting and accept a poor offer.
Loss of Evidence
Proof may vanish over time. Eyewitnesses may go away or forget what happened. Records may be lost or archived. Some insurance providers prolong the process in the desperate hope of causing you to lose evidence that is crucial to the case.
Limitation Periods and Time Delays
If the case drags on for too long, you may miss out on the chance to start formal litigation. The statute of limitations refers to the time limit for filing a lawsuit. The insurance company may be hoping that you are unaware of the requirements and hence miss the deadline.
How Does an Insurance Company Delay?
Here are some ways your insurance company adjuster may try to delay your claim:
- Demanding more paperwork
- Your supervisors have been holding up a final decision
- Informing you that your case is being evaluated continuously
- Unnecessary requests for medical records
- Additional statements are needed from you
- Threatening you that you won’t get coverage for further medical treatment
- Incorrectly stating the law applicable to your case
Offering a Quick, Low Settlement
One of the most common tactics you’ll encounter is the early, lowball settlement offer. It might seem like a relief to get a check quickly, but this is often a strategy to close your case for far less than it’s worth. Insurance companies know you’re dealing with medical bills and lost wages, and they hope the financial pressure will lead you to accept an inadequate amount. As one source notes, “Insurance companies often try to delay, deny, or offer less money for claims to protect their own profits.” This offer usually comes before the full extent of your injuries is known, meaning you could be left paying for future medical care out of pocket. Before you accept any offer, it’s crucial to understand the true, long-term cost of your injuries.
Using Your Recorded Statement Against You
Soon after an accident, an adjuster will likely call and ask for a recorded statement. They may sound friendly and concerned, but their goal is to get you on record. “Insurance adjusters may ask for recorded statements to twist your words and use them against you later.” They are trained to ask leading questions designed to get you to downplay your injuries or inadvertently admit some level of fault. An innocent comment like “I’m doing okay” can be used to argue your injuries aren’t severe. You are not obligated to provide a recorded statement, and it’s wise to decline until you have spoken with an attorney who can protect your rights and handle all communications on your behalf.
Requesting Full Access to Your Medical History
The insurance company will ask you to sign a medical authorization form, but it’s often far broader than necessary. They aren’t just looking for records related to your accident; they want to comb through your entire medical past. The reason? “Insurance companies may request broad medical forms to look for old injuries that could undermine your current claim.” They will search for any pre-existing condition or old injury they can use to argue that your current pain isn’t a result of the accident. This is a common way they attempt to devalue serious claims, especially those involving catastrophic injuries, where the stakes are highest. Never sign a blanket authorization without legal review.
Ignoring Your Calls and “Losing” Paperwork
If you feel like you’re being ignored, you probably are. It’s a deliberate tactic. “Adjusters may not return your calls or emails, and they might claim to have ‘lost’ important paperwork related to your claim.” This creates frustrating delays that are designed to wear you down. By making the process as difficult as possible, they hope you’ll either give up or become desperate enough to accept a low offer just to be done with it all. Having a dedicated legal team manage these communications ensures that deadlines are met, paperwork is properly filed, and the insurance company can’t use these excuses to stall your claim.
Constantly Switching Your Adjuster
Just when you think you’re making progress, you might get a notice that your claim has been assigned to a new adjuster. This isn’t a coincidence; it’s a tactic sometimes called “churning.” According to Roberts Markland LLP, “Insurance companies may switch your case to new adjusters frequently… which can lead to confusion and delays.” Each time, you have to start over, re-explaining the details of your accident and injuries. This constant shuffle is designed to slow everything down and create confusion, making it harder for you to build any momentum in your claim. It’s another strategy aimed at exhausting you into submission.
Conducting Surveillance
In some cases, insurance companies will go to extreme lengths to find a reason to deny your claim. This can include hiring a private investigator to watch you or monitoring your online activity. “Insurance companies may conduct surveillance on you, including monitoring your social media or hiring investigators to find reasons to deny your claim.” A photo of you at a family barbecue or a post saying you had a “good day” could be taken out of context and used as “proof” that your injuries aren’t as severe as you claim. After an accident, it’s incredibly important to be mindful of what you post on social media and to set your profiles to private.
Discouraging You From Seeking Legal Advice
Perhaps the biggest red flag is when an adjuster tells you that you don’t need a lawyer. They might say that hiring an attorney will only complicate things or reduce your settlement. This is rarely true. As legal experts point out, “Insurance adjusters may discourage you from hiring a lawyer, suggesting that it is unnecessary, which ultimately benefits the insurance company.” They say this because they know that an experienced personal injury attorney will level the playing field. A lawyer understands their tactics, knows the true value of your claim, and can fight for the full compensation you deserve. The attorneys at our firm are dedicated to advocating for our clients against these very tactics.
What to do If an insurance Company Stalls My Claim?
It is possible to fight back against the insurance company if it stalls. When your insurance company refuses to negotiate honestly with you, here are some options you have:
Document Every Interaction
When you’re trying to recover from an injury, the last thing you need is a game of phone tag with an insurance adjuster. To protect yourself and your claim, it’s essential to keep a detailed record of every single interaction you have with the insurance company. Create a log—in a notebook or a digital document—and write down the date, time, and the name of the person you spoke with for every phone call. Summarize what was discussed and any promises that were made. Save all emails and letters in a dedicated folder. This meticulous record-keeping does more than just keep you organized; it creates a timeline of evidence that can be crucial if the insurer tries to deny what was said or agreed upon. This log becomes an invaluable tool for your personal injury attorney to demonstrate any bad faith tactics.
Send Important Documents via Certified Mail
For any critical paperwork you need to submit, like medical authorizations or signed forms, don’t just drop it in the mail. Send it via certified mail with a return receipt requested. This might seem like a small, tedious step, but it’s a powerful one. It provides you with undeniable proof that the insurance company received your documents and on what date. This simple action completely shuts down the common excuse of “we never got your paperwork,” which is a tactic often used to create unnecessary delays and frustrate you into accepting a lower settlement. It ensures there is a clear paper trail that holds the insurance company accountable for the information they have in their possession.
Persistent Attitude
Keep in touch with your insurer. Make a lot of phone calls and send a lot of emails. Inquire as to how far the lawsuit has progressed. Inquire about specifications. For instance, if they say a superior is looking into the situation, inquire as to when you might expect a response.
If they indicate they’ll send you an offer, inquire as to when you may anticipate it. If you inquire about the status of your case, the insurance provider may determine that it is better to offer you a reasonable settlement.
Formal Demand Letters should be Written
A formal demand letter is one technique to inform the insurance provider that you’re sincere. A demand letter is a statement in which you outline what you believe is a fair settlement and the basis for your case value. You can also say that if you don’t get a response, you’ll take the dispute to court or start formal arbitration proceedings.
Intensify
If your insurance agent is unable to assist you, request a meeting with their supervisor. Continuously repeat your requests to the superiors. If they decline to connect you with a supervisor, look out for the insurance company’s general phone number and try again. When more individuals look at the case, the chances of someone agreeing to a reasonable settlement increase.
Be sure to Mention Bad Faith
An agreement is what an insurance plan is. When a claim comes under the terms of the policy, the insurance company has an obligation to pay promptly and honestly. A jury may conclude that the insurance company behaved in bad faith if they agree that the insurance company did not work with you to fairly value and settle your claim. In that instance, in addition to paying you the value of your claim, the insurance company may pay you legal fees.
What is Insurance “Bad Faith” in California?
Your insurance policy is more than just a piece of paper; it’s a contract, a promise that your provider will be there for you when you need them most. When an insurer unreasonably denies, delays, or underpays your valid claim, they aren’t just giving you the runaround—they may be acting in “bad faith.” California law holds insurance companies to a high standard, requiring them to treat policyholders fairly and honestly. This is known as the implied covenant of good faith and fair dealing. If your insurer fails to conduct a thorough investigation or refuses to pay what you’re owed without a valid reason, especially after you’ve suffered catastrophic injuries, they are breaking this promise and the law. This is a serious issue, and you have the right to hold them accountable.
Know the Legal Deadlines
One of the most critical things to understand in any legal matter is the deadline. In California, there’s a time limit for filing an insurance bad faith lawsuit, known as the statute of limitations. For these types of claims, you generally have two years from the date the insurance company committed the wrongful act, like unfairly denying your claim. This is not a flexible deadline. If you miss it, you could lose your right to seek justice forever, no matter how badly the insurer behaved. This is precisely why some companies stall—they hope you’ll get confused and let the clock run out. Understanding your rights and timelines is the first step, and you can get clarity by requesting a free consultation with an experienced attorney.
Take Legal Action or Initiate Arbitration
You may have to bring your case to court either through arbitration to battle the insurance company. The conditions of your policy will determine whether your case proceeds to court or to arbitration. However, stating your desire to move to legal processes is one method to urge the insurance company to engage with you.
It’s also crucial to be willing to go through with official proceedings. Even if you file a formal legal action, very few matters go to trial, so don’t be concerned just yet. When dealing with an insurance provider that is delaying your claim, it’s critical that they believe you are willing to go to any length to obtain justice.
How Can an Attorney Help?
When you’re dealing with insurance companies, an experienced injury lawyer can assist you in negotiating with them. They can utilize their knowledge to devise a strategy for contacting the insurance provider and when to do so.
They can even handle those discussions for you so you don’t have to think about what to say. They know how to write a demand letter and when it’s time to start official proceedings in your personal injury lawsuit since they’ve done it before. Your Personal Injury lawyer at Deldar Legal Injury Attorneys is likely to have dealt with blocked negotiations before and is unfazed by the insurance company’s methods.
Frequently Asked Questions
The insurance company offered me a settlement right away. Should I take it? An early settlement offer can feel like a lifeline, but it’s often a tactic. Insurance companies know you’re facing medical bills and stress, so they offer a quick, low amount hoping you’ll accept it before you know the true cost of your injuries. Accepting that check closes your case for good, even if you need more medical treatment down the road. It’s critical to understand the full, long-term value of your claim before agreeing to any amount.
Why does the insurance company want my entire medical history, not just records from the accident? This is a common strategy used to devalue your claim. The insurer isn’t just doing their due diligence; they are actively searching for any pre-existing condition or old injury they can use to argue that your current pain isn’t their client’s fault. You should never sign a broad medical authorization form without having an attorney review it first to protect your privacy and the integrity of your case.
What does it mean if an insurance company is acting in “bad faith” in California? In California, your insurance policy is a legally binding contract. “Bad faith” occurs when an insurer breaks that contract by unreasonably delaying, denying, or underpaying your valid claim without a proper reason. It means they are not dealing with you fairly. If an insurer acts in bad faith, you may be able to hold them accountable for more than just the original value of your claim.
The adjuster told me hiring a lawyer would just complicate things. Is that true? This is one of the biggest red flags you can encounter. Adjusters say this because they know an experienced attorney levels the playing field. They prefer to deal with you directly because they have the advantage. A lawyer’s job is to protect your rights, handle the complex communications, and fight for the full compensation you deserve, which is precisely what the insurance company wants to avoid.
My adjuster won’t return my calls. What should I do now? If you’re being ignored, start by documenting every single attempt to communicate. Keep a log with the date, time, and a note about your call or email. For any essential documents, send them via certified mail to create a paper trail they can’t deny. If the silence continues, it’s a clear sign that the insurer is not taking your claim seriously, and it’s time to have a legal professional step in and force them to respond.
Key Takeaways
- Understand the playbook: Insurance delays are rarely accidental; they are part of a strategy designed to wear you down. By recognizing that stalling tactics are meant to make you desperate, you can stay focused on the fair compensation you deserve.
- Build your own evidence: Meticulously document every interaction with the insurance company. A simple log of calls, a folder of emails, and receipts from certified mail create a powerful record that shuts down their excuses and strengthens your position.
- Level the playing field with legal help: An attorney signals to the insurer that their delay tactics won’t work. They can manage all communication, enforce California’s legal deadlines, and hold the company accountable for bad faith practices, forcing them to negotiate seriously.
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