Why Do Car Insurance Companies Delay Paying Valid Claims?
Posted in Car Accidents, Motor Vehicle Accidents, Personal Injury, Truck Accident on July 7, 2025
Insurance companies must follow strict timelines when you submit a claim. So, why do so many people end up waiting a long time only to receive a settlement that’s lower than they had hoped it would be? A closer look at the process shows how insurance companies can, and often do, delay payment.
Insurance Claim Timelines and Consumer Rights
To initiate the claims process, notify your insurance company. If you were harmed by someone else, you would notify the at-fault person’s insurance company of a third-party claim or else file a lawsuit against the at-fault party.
- Once you notify an insurance company of a claim, they have 10 working days to acknowledge and provide the necessary forms.
- Once you have submitted the claim, they have 15 days to let you know whether they will pay or need more time to investigate.
- They must inform you of the results of their investigation within 30 calendar days. However, they can take longer if they “reasonably” need more time for the investigation.
- In that case, they must provide periodic updates, always letting you know why they are delaying.
Unfortunately, there are many reasons they can give for dragging their feet. Once they finally decide they are ready to respond to your claim, the outcome may not match your expectations. You can appeal a denied claim or raise a dispute, but this further delays the settlement, so many people do not assert their consumer rights.
Reasons For Delays in Paying Valid Insurance Claims
Although your claim may be valid, there is potential for procedural hitches, or there could be problems with the policy against which you are claiming. For example:
- Your documentation is incorrect or incomplete
- There are issues with the insurance policy itself
- The insurance company says it needs more time to investigate
- The insurance company disputes some elements of your claim
- They question liability in third-party claims
These issues raise complexities but are understandable. However, deliberate bad-faith tactics could also be part of the picture. These include:
- Repeatedly questioning elements of your claim without good cause to do so
- Requesting excessive amounts of additional documentation long after you filed
- Delaying so that you are more likely to accept a lower settlement out of desperation
- Delaying so that they can collect more interest on their assets at your expense
If insurance companies unreasonably delay claims, they can fall afoul of Washington’s Unfair Claims Settlement Regulation. However, some insurance companies may attempt bad faith practices or delay payment of valid claims because they know you may be reluctant to spend even more time on appealing a settlement or initiating a lawsuit.
A Personal Injury Lawyer Can Help You Expedite Third-Party Claims
Third-party claims are particularly complex and open to debate when the injured person lacks extensive experience. Liability is likely to be called into question whenever possible. Even when it is clear, insurance companies may raise a multitude of arguments against the amounts you are claiming.
It will be especially hard to get fair compensation for non-financial damages unless you have deep knowledge about precedents that support them. On the other hand, personal injury lawyers can submit well-supported claims that are less open to delaying tactics. They are accustomed to negotiations with insurers, know bad faith tactics when they see them and can handle routine objections quickly.
With the right assistance, it may be possible to secure a much more valuable settlement than you would have believed possible and get paid faster. You are especially likely to face opposition for high-value claims, so the more severe your injuries, the more important it will be to get professional help. If all else fails, a lawsuit has already been filed, and your lawyer will fight for you in court.