Why Do Insurance Companies Delay Paying Valid Claims?

Dealing with the aftermath of an accident is stressful enough without having to worry about the insurance company delaying or denying your valid claim. Unfortunately, insurance companies are businesses, and their primary goal is to maximize profits. One way they do this is by pushing unnecessary delays, hoping that claimants will become frustrated and accept a lower settlement or give up altogether.

Delays Increase Financial Pressure on Claimants

When you are recovering from an accident, you may be facing exorbitant medical bills, vehicle repairs, and other expenses. You may be unable to work, resulting in lost income that makes it even harder to make ends meet. 

Insurance companies know that the longer they delay paying your claim, the more financial pressure you will be under. They hope that this pressure will force you to accept a lowball settlement offer to get some money in your hands.

If you have been injured due to someone else’s negligence, you are entitled to full and fair compensation for your losses. A personal injury lawyer in St. George can help you stand up to these tactics by negotiating aggressively with the insurance company and advocating for the highest possible settlement.

Investment Income Grows While Claims Remain Unpaid

Insurance companies invest the premiums they collect from policyholders, and these investments can generate significant income. By delaying payment on valid claims, insurance companies can keep more money invested for longer periods, increasing their overall profits. A personal injury lawyer can combat these delay tactics by persistently following up with the insurance company and escalating the matter if the insurer fails to act in good faith.

Time Helps Weaken Evidence and Witness Memories

As time passes after an accident, evidence can disappear, and witness memories can fade. Insurance companies may delay claims in the hope that this will happen, making it harder for you to prove your case.

This is why you should gather as much evidence as you can after the accident. Take photos of the scene, get contact information from witnesses, and keep detailed records of your injuries and expenses. The more evidence you have to support your claim, the harder it will be for the insurance company to delay or deny it.

Delays Help Run Out the Statute of Limitations

Every state has a statute of limitations for filing personal injury lawsuits. In Utah, this deadline is four years from the date of your accident. If an insurance company can delay your claim long enough, you may miss this deadline and lose your right to sue for compensation.

The insurer may drag out the claims process with endless requests for information, hoping that you will give up or miss the deadline to file a lawsuit. It is important to be aware of the statute of limitations and speak with an attorney before time runs out. 

Protect Your Rights with a Car Accident Lawyer 

If you were hurt in a car accident that wasn’t your fault, insurance companies should never profit from delaying your valid claim. At We Win Injury Law, we understand the financial and emotional strain these claims can cause, and we know how to fight back. 

Our attorneys will handle everything with the insurance company and work to recover the compensation you deserve without unnecessary delays. Contact us at (435) 688-9558 today for a free consultation and let us put our resources to work for you.