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Are claim processing delays evidence of insurance bad faith?

On Behalf of | Jul 28, 2021 | Firm News |

If you suffer a catastrophic injury in a motor vehicle accident, you are likely to have mounting medical bills you simply cannot pay. This may be true even if you have good health insurance, as copays and other out-of-pocket medical expenses can add up quickly.

At one claim per 100 car years, bodily injury insurance claims are not exactly unfamiliar to insurers. Unfortunately, though, insurance providers often drag their feet when investigating and paying injury-related claims.

What is insurance bad faith?

Your insurance provider has a legal duty to act in good faith. In exchange for collecting regular premiums from you, your insurer should promptly process your claim. While some insurance claims take longer than others to settle, abnormal or egregious delays may breach the company’s duty to act in good faith. That is, delays may be evidence of insurance bad faith.

How do insurers delay claims?

Most insurance companies are for-profit ventures that prioritize their bottom lines. Because paying a large settlement negatively affects profits, insurers may employ a variety of tactics to try to wear you down. Here are some common ones:

  • Trying to settle before you know the full extent of your injuries
  • Asking you for a recorded statement
  • Assigning your case to an overworked adjuster
  • Requesting a full examination of your entire medical history
  • Postponing your claim for further review

Even though you may feel powerless after suffering a serious injury in a motor vehicle accident, you do not have to stand idly by while an insurance company prolongs your claim. Ultimately, by knowing your rights and responding appropriately to delay tactics, you may increase your chances of receiving the financial settlement you deserve.