After a car accident, most people expect that filing an insurance claim will result in prompt and fair compensation.
Unfortunately, the reality is often quite different. Insurance claims frequently take weeks or even months to resolve, leaving accident victims struggling with mounting medical bills, repair costs, and lost wages.
Many people don’t realize that these delays aren’t always unavoidable administrative processes.
They are frequently deliberate strategies that insurance companies employ to minimize payouts and protect their bottom line. Understanding these tactics can help you recognize when you’re being subjected to unreasonable delays and when to seek professional legal assistance.
Insurance Claim Process:
What Should Happen vs. Reality
When you file an insurance claim after an accident, the standard process should follow a relatively straightforward path:
You report the accident to your insurance company
The insurer assigns an adjuster to investigate your claim
The adjuster reviews evidence, assesses damages, and evaluates coverage
The insurance company decides to extend a settlement offer
You either accept the offer or negotiate for fair compensation
The claim is resolved, and payment is issued
In an ideal scenario, this process might take a few months if you need medical treatment.
However, insurance companies have developed numerous strategies to extend this timeline, often to their advantage and the detriment of their policyholders.
Why Do Insurance Companies Delay?
Insurance companies have several financial motivations for delaying the processing and payment of valid claims. Let’s examine these tactics and understand why they’re employed:
1. Financial Pressure
One of the most common delay tactics is designed to exploit your financial vulnerability after an accident. Insurance companies understand that your financial pressures will likely increase as time passes without a settlement. Medical bills pile up, car repair or replacement costs become urgent, and you may be dealing with lost income if your injuries prevent you from working.
As these financial stresses mount, you become more likely to accept a settlement offer that’s significantly lower than what your claim is actually worth. The insurer is essentially betting that your immediate need for funds will outweigh your patience to fight for full compensation.
For example, a claim for serious injuries that might be worth $50,000 could be settled for $15,000 if the claimant faces eviction, mounting medical debt, or other financial emergencies after months of delays. The insurance company saves $35,000 simply by extending the claim’s timeline.
2. Running Down the Clock
Every state has laws known as statutes of limitations that set strict deadlines for filing personal injury lawsuits. In Kentucky, you generally have two years from the date of a car accident to file a lawsuit. Insurance companies are aware of these deadlines, and some deliberately prolong the claims process to push you closer to this critical deadline.
The strategy is simple but effective: by the time you realize the insurance company isn’t going to offer fair compensation, you may have little time left to consult with an attorney and prepare a lawsuit. This time pressure can force you to either accept whatever offer is on the table or risk losing your right to seek compensation entirely.
3. Maximizing Investment Income Through the “Float”
Insurance companies don’t just store your premium payments in a vault. They invest this money to generate additional revenue. The industry term for this pool of premium dollars held before being paid out in claims is the “float,” and it represents a massive source of investment income for insurers.
Every day an insurance company delays paying a valid claim is another day they can keep that money invested and earning returns. When multiplied across thousands of claims and millions of dollars, even short delays can generate significant additional revenue.
Warren Buffett, whose company Berkshire Hathaway owns several insurance companies, has famously discussed the value of this float to insurance company profitability. The longer they can delay payments while collecting and investing premiums, the more profit they generate.
4. War of Attrition
Some insurance delays are calculated to test your perseverance and determination. Insurers recognize that pursuing a claim requires a substantial amount of time, energy, and emotional resources. By repeatedly requesting additional documentation, scheduling and rescheduling evaluations, transferring your claim between different adjusters, or simply failing to return phone calls, they hope to wear you down.
Many claimants, especially those recovering from injuries or juggling other life responsibilities, eventually decide the process isn’t worth the hassle. They either abandon their claims entirely or accept whatever offer is presented—even if it’s far below what they deserve.
5. Maximizing Corporate Profits
The fundamental business model of insurance companies creates an inherent conflict of interest: every dollar paid out in claims is a dollar that doesn’t contribute to the company’s profits. While insurance serves a vital societal function in managing risk, publicly-traded insurance companies face intense pressure to maximize shareholder returns.
This profit motivation can lead to systematic policies that minimize claim payouts through delays, denials, and lowball offers. Some insurance companies even implement performance evaluation metrics and bonus structures for adjusters based on how little they pay out in claims, directly incentivizing them to undervalue your losses.
Common Delay Tactics
Understanding the specific methods insurers use to delay claims can help you recognize when you’re being subjected to these tactics:
Excessive Documentation Requests
Insurance companies may repeatedly request documents you’ve already provided or ask for unnecessary information.
While some documentation is necessary to process your claim, requests for irrelevant records from years before the accident or demands for the same information multiple times can be signs of deliberate delay.
The Adjuster Shuffle
Some insurers will transfer your claim between multiple adjusters without explanation.
Each new adjuster needs time to “get up to speed” on your case, effectively resetting the clock on your claim.
If you repeatedly explain your situation to new insurance representatives, you may be experiencing this tactic.
Unreturned Calls and Vague Timelines
A common frustration for claimants is the difficulty of getting clear communication from their adjuster.
Unreturned phone calls, vague responses about when updates can be expected, and missed deadlines are all potential signs that the insurance company is deliberately delaying the process.
Disputing Medical Necessity or Treatment
Insurers often delay claims by questioning whether your medical treatment was necessary or related to the accident.
They may demand independent medical examinations with doctors of their choosing or hire medical review companies known for disputing claims.
These strategies extend the timeline while attempting to reduce the value of your claim.
Settlement Offers Without Full Investigation
Sometimes insurance companies will quickly offer a settlement before you fully understand the extent of your injuries or damages.
While this might seem like the opposite of a delay tactic, accepting such offers typically requires you to sign a release waiving your right to seek additional compensation.
If your injuries worsen or require further treatment, you’ll have no recourse to recover those costs.
Preventing Delays
While some delays in the claims process are inevitable, there are several proactive steps you can take to minimize unnecessary delays and protect your interests:
Report the Accident Promptly
Notify your insurance company about the accident as soon as possible. Many insurance policies include specific deadlines for reporting accidents, and failing to meet these deadlines could jeopardize your claim entirely.
Document Everything Thoroughly
Gather and preserve all evidence related to your accident and injuries, including:
Photos of the accident scene, vehicle damage, and visible injuries
Police reports and incident documentation
Medical records and bills
Witness statements and contact information
Records of all communication with the insurance company
Documentation of lost wages and other financial impacts
The more comprehensive your documentation, the harder it is for the insurance company to justify delays or denials.
Understand Your Policy Coverage
Carefully review your insurance policy to understand what’s covered, excluded, and the procedures you need to follow.
Being familiar with your policy terms allows you to identify when the insurance company misrepresents your coverage or imposes requirements not actually contained in your policy.
Communicate Clearly and in Writing
Whenever possible, communicate with your insurance company in writing (email or letters) rather than only by phone.
Written communication clearly records what was said, when, and who said it. If you speak by phone, follow up with an email summarizing the conversation.
Be Responsive to Legitimate Requests
While being vigilant about delay tactics, respond promptly to legitimate requests for information.
Provide requested documentation quickly to prevent the insurance company from blaming delays on your responsiveness.
When to Seek Help
Insurance companies have teams of adjusters, investigators, and attorneys working to minimize their payouts. Having an experienced advocate on your side levels the playing field. Consider consulting with a personal injury attorney if:
Your claim has been pending for more than a few weeks without clear progress
The insurance company has denied your claim without an adequate explanation
You’ve received a settlement offer that seems inadequate for your damages
The insurer is disputing liability despite clear evidence
You’re being asked to provide excessive or irrelevant documentation
You’re approaching the statute of limitations deadline
You’ve suffered serious injuries requiring extensive medical treatment
How an Attorney Can Combat Delay Tactics
Having experienced legal representation can dramatically change how insurance companies handle your claim.
Here’s how an attorney can help:
Handling All Communication
Your attorney becomes the primary point of contact for the insurance company, shielding you from stressful interactions and preventing adjusters from obtaining statements that could harm your claim.
Setting Deadlines and Demanding Compliance
Attorneys understand the legal obligations of insurance companies and can establish appropriate deadlines for responses and actions.
They can demand compliance with these deadlines through formal legal mechanisms when necessary.
Preparing to Litigate if Necessary
Insurance companies are aware of which attorneys are willing to take cases to court if fair settlements are not offered.
Having representation from a law firm with a strong trial record can motivate insurers to process claims more efficiently and make more favorable offers.
Recognizing Bad Faith Practices
Experienced attorneys can identify when delays cross the line from ordinary business practices into bad faith conduct. In such cases, the insurer may be liable for additional damages beyond your original claim.
Understanding Bad Faith Insurance Practices
Insurance companies in Kentucky have a legal duty to handle claims in “good faith,” meaning they must:
Conduct prompt and thorough investigations of claims
Provide reasonable explanations for claim denials
Pay valid claims promptly
Refrain from using unfair tactics to pressure claimants
Not misrepresent policy provisions or coverage
When insurers fail to meet these obligations, they may be acting in “bad faith,” which can expose them to additional legal liability. Kentucky law allows policyholders to pursue bad faith claims against insurers who unreasonably delay or deny valid claims.
Successful bad faith claims can result in damages beyond the original claim amount, including:
Interest on the delayed payment
Attorney’s fees and litigation costs
Compensation for emotional distress
Punitive damages in cases of egregious misconduct
Protect Your Rights
If you’re experiencing unreasonable delays with your insurance claim after a car accident in Kentucky, don’t face the insurance company alone. At Sam Aguiar Injury Lawyers, we understand the tactics insurers use to delay valid claims and know how to counter these strategies effectively.
Our experienced attorneys can:
Evaluate your claim and identify inappropriate delay tactics
Take over all communication with the insurance company
Ensure your claim is properly documented and supported
Set appropriate deadlines for insurance company responses
Prepare and file a lawsuit if necessary to protect your rights
Pursue bad faith claims when insurers violate their legal obligations
We offer a free, no-obligation consultation to discuss your situation and explain how we can help. Our firm works on a contingency fee basis with our exclusive Bigger Share Guarantee®, so you’ll always take home more money.
Don’t let insurance company delays prevent you from receiving the compensation you deserve. Contact Sam Aguiar Injury Lawyers today at (502) 888-8888 for our Louisville office or (859) 888-8000 for our Lexington location to schedule your free case evaluation and learn how we can help expedite your claim.
