Why Do Car Insurance Companies Delay Paying Valid Claims?

Despite their feel-good ads, insurance companies are in business to make money. They realize significant profits by bringing in more money than they pay out in claims. Insurance companies may employ various tactics to delay paying claims, including requesting additional information that is not necessary to process the claim, not promptly responding to communications from the claimant, and delaying an investigation. There are several reasons why insurance companies may delay paying valid claims, including to:

Get You to Give Up

Insurance company representatives know that accident victims are dealing with a lot right now. They are injured, struggling with lost income, and facing an uncertain future. They sometimes take advantage of this vulnerable position by causing additional stress by delaying claims. They hope that you will simply give up out of frustration. And, if you do, they win. They avoid having to pay the compensation they owe you for your:

• Medical expenses
• Lost wages
• Reduced earning capacity
• Car repairs
• Out-of-pocket expenses
• Pain and suffering

The more claims they can deny, the greater profitability the insurance company can achieve.

Get You to Accept Less Money

Even if you don’t give up entirely, constant delays, stress, and frustration may influence you to accept any offer the insurance company finally makes. You may figure that this is the most you may get out of your car accident settlement, or you might just figure it’s enough. However, many car accident victims drastically underestimate the long-term effects and consequences of the accident. Avoid this issue by consulting with an experienced St. Louis car accident attorney to learn about your rights and what you might be entitled to.

Make More Money

Another reason insurance companies may delay claims they know are valid is greed. Insurance companies stand to make more money by taking the money their insured drivers pay in premiums and letting interest grow on those premiums. The longer they can delay your claim, the more interest they can receive.

Run the Clock

Insurance companies know that accident victims have a limited amount of time to file a lawsuit following a car accident. This is known as the statute of limitations. If you don’t file a lawsuit within the applicable statute of limitations and you have not received a settlement by this time, you can forfeit your right to recover compensation from the insurance company. In Missouri, the time limit to take action for any injuries is 5 years. This gives the insurance company an incentive to delay the claim so they can avoid financial liability with it.

Contact a Car Accident Lawyer to Protect Your Rights

If you were injured in an accident caused by someone else’s careless actions, you should not have to shoulder the financial burden. The experienced St. Louis car accident lawyers from Miller & Hine have over 50 years of legal experience. We know the tactics insurance companies use to delay and deny claims, and we will work tirelessly to secure the compensation you deserve. Reach out to us for a free case review by calling (314) 408-5708 or contacting us online.