Insurance companies have formulated ways to stall compensation, hoping to get away with paying less. And you’d be surprised to know how well this strategy works. Many people want the quickest solution out of a sticky situation, so they end up falling for these old tricks. Here’s everything you need to know if you suspect your insurance company is stalling.

Why do Insurers Stall Payouts?

There are many reasons why an insurer may decide to stall a settlement, but here are the most common ones.

Company policy: Some insurance companies instruct their in-house adjusters to stall compensation using any means possible. They do this by creating roadblocks at every corner, which are designed to frustrate the victim. That allows the company to make more money in the background as most people will accept a smaller settlement to get their lives back on track.

Destruction of evidence: Evidence gets lost all the time, especially if a case takes forever to complete. Witnesses may move to another city, lose their memory, or change their minds, leaving you with nothing to back up your claim. This tactic has worked for top dollar compensation cases with great success.

Frustrating victims: An insurer may decide to stall a claim, hoping the complainant will walk away out of frustration. They usually use this one on small claims that would not be worth waiting for. That includes busted tail lights, broken windows, and other minor damages.

The end-game of all these tactics is making more money when victims settle for less or decide to walk away. Some of these tricks are as old as the insurance concept, and they’re not going anywhere. 

Signs That Your Insurer Is Stalling

An insurance company that wants to stall a settlement keeps switching adjusters on your case. When this happens, the new adjuster demands to see additional documents, hoping to catch something the previous guy missed. This paperwork usually takes time to put together, and the insurer uses that to frustrate victims.

Other times, the adjuster might throw many legal complications on your case, making it look like an overly ambitious task. They do this by interpreting the law in their favor and hoping the victim will fall for it. 

When they eventually run out of excuses, the insurance company may blame the delay on a pending review. If this decision takes them more than a week, maybe the adjuster is trying to buy more time.

What To Do If Your Insurance Is Stalling

If you notice one or more signs of stalling, use these tactics to get things back in motion.

Be persistent: Calling and emailing persistently is the easiest way to smoke out a stalling insurance adjuster. During each call, ask about the progress and when you can expect results. Nobody likes handling “stubborn” clients, and that might be the reason you get fair compensation.

Keep Evidence Safe: The evidence you have should stay in a safe place where you can retrieve it on demand. If it’s a digital file, have a copy in a storage disk and keep backups in your favorite cloud platforms. Remember, the size of your compensation depends on how you build the case.

Get several Estimates: If your insurance is trying to lowball repairs, get several quotes from reputable car repair shops or builders. That helps you demonstrate why the suggested compensation package won’t get the job done. 

Mention Bad Faith in the hearing: Insurers are supposed to help their clients overcome surprise costs most quickly and easily possible. If this does not happen, the jury might think the insurer has bad faith and may be subjected to paying the complainant’s legal fees plus the settlement.

Write a Formal Complaint: Writing a formal complaint is another great way to get the insurers’ attention. Tell them you’ve waited for way too long and haven’t bounced back from the unexpected expense. Keep a copy of this letter as it will serve as evidence if stalling continues.

Ask to talk to the Supervisor: If you keep getting excuses, it’s time to escalate your complaints to the supervisors. Call any public phone number the company puts online, then ask to talk to a supervisor. This will attract the right eyeballs to the case and hopefully result in fair compensation.

Cooperate with the insurer: Some people always look for a fight when they want things done their way. Don’t be that person. The idea is to listen to what your insurance adjuster says and share your concerns positively. Also, provide documentation on time and always show up for appointments.

Involve an Attorney: An attorney knows when an insurance company is stalling for no reason and when the adjuster genuinely needs more time to get things done. This professional will also try to get the best possible settlement for the case as they know their way around the law. You will never have to call the insurance again or deal with any form of stalling.

How Long Can an Insurance Company Delay a Settlement?

The truth is, this time varies from state to state. But most states protect their citizens by placing a short period between the time an insured person puts in a claim and when the insurance sends the check. This saves people from having to deal with delayed settlements. However, insurance companies have sneaky ways of pinning delays on clients, and that’s why you need to know how the system works.

That said, hiring an attorney is the easiest way to get your insurance claim in good time. You will never have to deal with adjusters or supervisors, which is always a welcome idea in today’s busy world. 

Still, you can choose to go ahead without legal representation and use our tips to maneuver your way to a timely and fair settlement. It is also super important to remember that insurance companies make money if they don’t payout, which is usually their goal.