Imagine you’ve filed an insurance claim after a car accident. You meticulously documented the damage, obtained police reports, and promptly submitted everything to your insurance company. You expect a prompt response, a fair assessment, and a timely settlement. But weeks turn into months, and you’re met with silence, delayed communication, and a growing sense of frustration. This frustrating situation is more common than you think. Insurance companies, unfortunately, sometimes employ stalling tactics, hoping to reduce payouts or discourage claimants from pursuing their rightful compensation. This can leave you feeling helpless and overwhelmed, especially when you’re already dealing with the aftermath of a stressful event.
If you find yourself in this predicament, it’s crucial to understand your rights and take proactive steps to protect your interests. This article will shed light on the common stalling tactics used by insurance companies and provide actionable strategies you can implement to address these delays, potentially expedite the claim process, and ultimately secure the settlement you deserve.
Recognizing Common Stalling Tactics
Insurance companies may employ various tactics to delay or avoid paying out on claims. Recognizing these tactics is the first step in combating them. Here are some common stalling strategies to watch out for:
The Silent Treatment: Delaying Communication
One of the most common and infuriating tactics is simply delaying communication. This can manifest as ignoring phone calls and emails, taking an unreasonably long time to respond to inquiries, or failing to provide any updates on the claim’s status. This tactic aims to wear you down, hoping you’ll become discouraged and give up on your claim.
Paperwork Purgatory: Requesting Excessive Documentation
Another tactic is to bombard you with requests for excessive documentation. This might involve demanding redundant or unnecessary documents, constantly asking for more information even after you’ve submitted everything initially requested, or even “losing” or misplacing documents to create further delays. The goal is to make the process as cumbersome as possible, hoping you’ll become overwhelmed and abandon your claim.
The Lowball Offer: Undervaluing Your Claim
Insurance companies may also attempt to offer a settlement amount that is significantly lower than the actual value of your claim. They might use tactics to downplay the severity of the damage or injury, arguing that the repairs are cheaper than estimated or that your injuries are not as severe as claimed. They hope you will accept the first offer out of desperation. Remember to never accept a lowball offer without consulting an attorney.
Shifting the Blame
Some insurance companies may attempt to shift the blame for the incident onto you, the policyholder. They might try to find loopholes in your policy or exploit exclusions to deny your claim. They could argue that you were partially at fault for the accident, even if evidence suggests otherwise. The intention is to avoid liability and deny your claim altogether.
The Endless Investigation: Prolonged Investigation
An insurance company may take an excessively long time to investigate your claim, using the investigation as an excuse to delay payment. This can involve repeatedly interviewing witnesses, requesting additional expert opinions, or conducting unnecessary inspections. The longer the investigation takes, the longer they can postpone paying out on your claim.
The Rotating Cast: Frequent Adjuster Changes
A more insidious tactic involves frequently changing your assigned insurance adjuster. This forces you to re-explain your entire case to a new person, resubmit documents, and essentially start the process over each time. The constant changes can be incredibly frustrating and significantly delay the resolution of your claim.
Taking Action When Your Insurance Company Is Stalling
If you suspect your insurance company is employing stalling tactics, don’t despair. There are several steps you can take to address the situation and protect your rights.
Creating a Solid Foundation: Document Everything Meticulously
The single most important thing you can do is meticulously document everything related to your claim. Keep detailed records of dates, times, names of representatives you speak with, summaries of your conversations, and copies of all correspondence, including emails, letters, and claim forms. This documentation will serve as invaluable evidence if you need to escalate the issue or pursue legal action. Keep copies of all emails, letters, and documents sent to the insurance company. Make notes about every phone call, including the date, time, and the name of the person you spoke with. Take photos and videos of any damage or injuries.
Putting it in Writing: Formal Communication
Shift your communication with the insurance company from phone calls to emails or certified mail. This creates a clear paper trail and provides proof of your communication. In your written correspondence, clearly state your concerns, outline the specific delays you’ve experienced, and request a response within a reasonable timeframe, typically seven to ten business days.
Understanding Your Rights: Policy and State Laws
Review your insurance policy thoroughly to understand your rights and obligations as a policyholder. Pay close attention to the policy’s terms and conditions, coverage limits, and any exclusions that may apply. Research your state’s laws and regulations regarding insurance claims processing. Many states have specific laws that outline the timeframe in which an insurance company must respond to a claim and the penalties for unfair claims practices. Look for information on “unfair claims practices” in your state’s insurance regulations. Understanding your rights empowers you to advocate effectively for yourself.
Taking it to the Top: Escalate to a Supervisor
If you’re not getting satisfactory results from your assigned insurance adjuster, request to speak with their supervisor. Clearly and calmly explain the situation, highlighting the delays and your concerns. Prepare a concise summary of your interactions with the adjuster and the specific issues you’re facing. Document the supervisor’s name and contact information, along with the date and time of your conversation.
Seeking State Intervention: Filing a Complaint
If all else fails, file a formal complaint with your state’s Department of Insurance. This agency is responsible for regulating insurance companies and enforcing state insurance laws. The process for filing a complaint typically involves submitting a written statement outlining the details of your claim and the reasons why you believe the insurance company is acting unfairly. The Department of Insurance will investigate your complaint and take appropriate action, which may include pressuring the insurance company to resolve the issue or imposing penalties for violations of state law.
Exploring Alternative Solutions: Mediation or Appraisal
Consider exploring alternative dispute resolution methods, such as mediation or appraisal. Mediation involves a neutral third party who helps you and the insurance company reach a mutually agreeable settlement. Appraisal, on the other hand, is typically used in property damage claims and involves a neutral appraiser who assesses the value of the damage. Both mediation and appraisal can be less costly and time-consuming than litigation.
Seeking Legal Guidance: Consult an Attorney
If you’ve exhausted all other options and your insurance company continues to stall, it’s time to consult with an attorney who specializes in insurance law. An attorney can review your policy, assess the merits of your claim, and advise you on the best course of action. An attorney can also negotiate with the insurance company on your behalf and, if necessary, file a lawsuit to protect your rights. Consulting with an attorney does not necessarily mean you have to hire them, but it can provide valuable insight and help you understand your legal options.
Recognizing Bad Faith Insurance Practices
It’s important to be aware of “bad faith” insurance practices. Bad faith occurs when an insurance company acts unreasonably or unfairly in handling your claim. This can include intentionally misrepresenting policy language, failing to conduct a reasonable investigation, or denying a valid claim without justification. If you believe your insurance company has acted in bad faith, you may be able to pursue additional legal recourse and potentially recover damages beyond the original claim amount. Some examples of bad faith insurance practices include: failing to investigate a claim properly, delaying or denying a claim without a reasonable basis, offering a settlement that is unreasonably low, or misrepresenting the terms of the insurance policy. If you suspect that an insurance company is acting in bad faith, you should contact an attorney.
Proactive Measures: Preventing Stalling from the Outset
While you can’t guarantee a smooth claims process, there are steps you can take to minimize the risk of your insurance company stalling.
Choosing Wisely: Select a Reputable Insurer
Before purchasing an insurance policy, research and read reviews of different insurance companies. Look for companies with a reputation for fair claims handling and excellent customer service. Check their ratings with organizations like AM Best and the Better Business Bureau.
Knowledge is Power: Understand Your Policy
Thoroughly read and understand your insurance policy before an incident occurs. Know your coverage limits, exclusions, and obligations as a policyholder. Ask your insurance agent to clarify any confusing language or terms.
Document, Document, Document: Keep Detailed Records
Even before a claim is filed, keep records of all communication with your insurance company, including phone calls, emails, and letters. Maintain copies of your policy documents and any endorsements. In the event of an incident, document everything thoroughly, including photos, videos, and witness statements.
Timely Filing: Submit Your Claim Promptly
Don’t delay in filing your claim after an incident. The sooner you file, the sooner the insurance company can begin the investigation process. Make sure to provide all the necessary information and documentation to support your claim.
Conclusion
Dealing with a stalled insurance claim can be incredibly frustrating and stressful. Remember that you have rights and options. Document everything, communicate in writing, understand your policy and state laws, escalate to a supervisor, file a complaint with your state’s Department of Insurance, consider mediation or appraisal, and consult with an attorney if necessary. By taking these proactive steps, you can protect your interests, potentially expedite the claim process, and secure the settlement you deserve. Don’t let insurance company stalling tactics discourage you. Take control of the situation and fight for your rights.
