Car insurance is mandatory for all vehicle owners in the United States. It is a crucial financial safeguard during accidents, covering out-of-pocket expenses most individuals cannot afford.
Following a car accident, you may face substantial property damage costs or medical bills from injury treatment, typically covered by insurance claims. However, pursuing insurance claims can be frustrating if the insurance company does not respond to your communications.
Let’s discuss some of the obligations insurance companies have when responding to insurance claims and what can be done if they fail to respond to your inquiries promptly.
Insurance Company’s Obligations
After a car accident, your insurance company and the other driver’s insurance company will be involved in any potential claims. If the other driver is at fault for the accident, you may have to file your claim through their insurance company to receive compensation for property damage or medical expenses.
Here are some obligations every insurance provider must follow in the United States.
Prompt Response
Under state and federal laws, every insurance company must respond to claims within a reasonable timeframe. If you file an insurance claim after a car accident, they must respond to the inquiry without unreasonable delays. Failing to respond promptly could open the insurance company up to a lawsuit since they are obligated to serve the needs of claimants.
Communication and Updates
The insurance provider must also communicate the progress of your claim. If you do not hear about your claim status for a significant period, it could be a sign that the insurance adjuster is dragging their feet and trying to delay a payout. When the insurance company refuses to update you about your claim status, they may use shady tactics to undermine your case.
Fair and Prompt Settlement
The purpose of an insurance claim is to recover compensation for damages suffered in a car accident. This settlement will help cover the vehicle’s repair costs or medical bills for injury treatment. Insurance claims adjusters must conduct thorough investigations promptly to settle claims with fair compensation.
Additionally, if you receive a claim denial, the insurance company must provide a written explanation as to why the claim was rejected.
Reasons for Delays or Lack of Response
Insurance claims can take a long time to process. Sometimes, the delays are simply part of the process, but they could also result from shady claim tactics or attempts to avoid payouts. Here are a few common reasons there could be delays or a lack of response to your insurance claim.
High Volume of Claims
Insurers handle a high volume of insurance claims throughout the year. The more car accidents occur, the more claims must be filed. The delay in your insurance claim is often a simple matter of limited processing power with the carrier.
If a natural disaster or significant event, such as a bad snowstorm, has increased claims, they could take longer to respond to yours.
Complex Investigations
The more complex a car accident is, the longer it will take to investigate. For example, if your accident involves multiple vehicles and there are disputes over liability, your insurance claim will take much longer to resolve.
This delay happens because the insurance adjuster must thoroughly investigate the collision to determine the circumstances of the accident and what payouts are necessary to cover damages.
The adjuster may also be communicating with the other insurance companies involved in the accident. These circumstances will require more time for the investigation, so you may not hear updates about your insurance claim for a while.
Inadequate Staffing
It is easy to assume the insurance company ignores some claims due to their complexity or the size of the potential payout. However, in many cases, there are not enough adjusters to process insurance claims efficiently.
Understaffing at the insurance carrier means fewer people to process claims, so it takes longer for an adjuster to investigate your claim. The company could also have an inefficient process for assigning each claim to an insurance adjuster. Inadequate staffing is among the most common causes of insurance policy claim delays.
Bad Faith Tactics
Although federal and state laws prohibit these practices, insurance adjusters may deliberately delay or deny claims using bad faith tactics. Insurance companies are businesses that want to make money, and finalizing settlements with car accident victims is not fiscally advantageous.
As a result, your insurance adjuster may respond slowly to your claim. If they do respond, they may choose a low-ball offer or deny your claim outright.
If you suspect an insurance carrier is using bad faith tactics to undermine your claim, you may want to consider pursuing legal action against them.
What to Do if the Insurance Company Is Not Responding?
An unresponsive insurance company is only sometimes an indicator of bad faith. Since there are many reasons for delays, including claim volume and understaffing, there are several steps you can take to attempt to mitigate the delay.
Follow Up and Document
The most straightforward step is to follow up with the insurance company after you have filed your claim. These entities are obligated to respond to claims promptly, so if you are still waiting to hear back within a few days or weeks, a simple email or phone call may suffice to get things moving.
However, keep track of all your communications in case you choose to pursue legal action if the delays continue.
Escalate the Matter
Escalating the situation can force an adjuster to respond and process your claim. If you are still waiting to hear back from them, consider contacting a supervisor or manager at the company to determine why your claim is not being processed.
Stirring the pot a little can be enough to get the insurer moving on your claim, but it can also help you determine if the adjuster is acting in good faith. Make sure you remain calm when speaking to supervisors or managers about the issue over the phone.
File a Complaint
Every state has a department of insurance that handles complaints about insurance companies.
You can file a complaint against your insurance company by finding your state’s website and completing an online form stating the nature of your complaint and the insurance company that has failed to respond. This entity can then hold the carrier accountable and force them to take action.
You may need evidence to support your complaint, so include necessary documentation about your correspondence to demonstrate that the carrier is unresponsive.
Consult a Personal Injury Lawyer
If all else doesn’t work and the insurer fails to contact you or process your claim, you should consult a car accident lawyer. You may end up filing a lawsuit against the insurance company itself in addition to the original insurance claim for the accident.
You have the right to pursue justice if you receive an unfair claim denial or the carrier is unresponsive. These issues delay compensation that you desperately need to pay for property damage, medical bills, and other damages from the crash. With the right car accident attorney, you can hold the insurance company accountable for failing to address your claim fairly.
Why You Need a Car Accident Lawyer
Hiring a personal injury lawyer is essential after a complex car accident. The need for a lawyer is even greater if the insurance carrier is not providing a settlement. The benefits of working with an attorney on your car accident case are numerous.
Communicating with the Insurance Company
When communication breaks down between you and the carrier, an attorney can step in and force the company to respond. Getting a lawyer involved can scare the insurance company into action since they are dealing with a legal representative who understands the client’s rights.
Your attorney is well-versed in state and federal laws regarding insurance, so they have the power to demand a response from the insurer on your behalf.
Investigating the Claim
Insurance companies may not settle claims for various reasons. Although they must disclose their reasons for delaying or denying a claim, they do not always follow through with this obligation.
Your attorney can independently investigate your claim to determine a fair outcome. They can look at medical records to assess your damages, police reports to determine the at-fault driver, and even subpoena records of phone calls if the insurance company is unresponsive.
Attorneys can help you build a strong case by gathering evidence against the other driver or the insurance carrier. Additionally, you can speak with a lawyer about your case during a free consultation to make an informed decision when hiring legal representation.
Negotiating a Fair Settlement
Even if the insurance company is processing your claim, hiring an attorney for the negotiation process is still in your best interest. The adjuster will likely make a low first offer for the settlement to avoid a larger payout. Many victims simply accept this first offer, assuming it is fair.
However, a legal advocate will know if you are being shortchanged. They will negotiate on your behalf for maximum compensation to ensure you receive enough money to cover your damages from the accident.
Filing a Lawsuit
If you receive an unfair claim denial or the insurance carrier uses bad faith tactics, a lawsuit against them may be necessary to hold them accountable. They could be sued for bad faith tactics or unreasonable delays when processing your claim.
If you want a better chance of winning your lawsuit, you will need an experienced lawyer on your side. They will build a strong case, protect your rights, pursue maximum compensation, and represent you in court if necessary.
Free Legal Consultation for Your Car Insurance Claim!
Have you recently been in an automobile accident and have suffered legal damages as a result? Is the insurance company failing to respond to your claim application, delaying the money you desperately need for car repairs or medical treatment costs?
Insurance companies are obligated to respond to claims promptly and offer fair settlements to victims of car accidents, so you have the right to hold negligent drivers and unresponsive insurance carriers accountable for their actions.
Rosenfeld Injury Lawyers is a team of experienced attorneys who work with many car accident victims to pursue compensation for damages. We understand that insurance companies are not always looking out for the best interests of claimants, resulting in significant delays or claim denials.
If you suspect the insurance company or other driver of wrongdoing after a motor vehicle accident, our team will help you navigate the legal process.
We offer a free consultation with a Chicago car crash attorney so you can ask questions about your case first. Call us today at 888-424-5757 or complete the contact form.