Insurance companies delay car accident claims even when fault is clear to earn interest from the funds set aside for a payout, bring the claim near the statute of limitations, and push the claimant to accept a lowball settlement offer or quit pursuing the claim altogether. Delays in a Chicago car accident claim can lower your settlement value by weakening evidence and allowing insurers to dispute liability or damages. Crucial steps you can take to protect your rights when an insurance company delays your accident claim include recording every interaction, carefully examining your insurance policy, and seeking legal support.
If you suspect an insurance company is deliberately delaying your car accident claim in Chicago, Illinois, call 773-838-8100 to consult car accident attorneys at Lloyd Miller Law Group. We will review your case and guide you on the best course of action.
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Why Do Insurance Companies Delay Car Accident Claims Even When the Fault Is Clear?
Deliberately delaying your car accident claim often benefits the insurer financially.
When you file a claim after an intersection accident and include all the required documentation and evidence, you expect the insurance company to respond with a settlement offer. Instead, you find yourself dealing with an insurer that keeps requesting redundant paperwork and ignoring your emails or calls. This situation may compel you to ask, “Why is the insurance company delaying my car accident claim?”
It’s not just your Chicago car accident claim that is taking too long to settle. It is a common problem in Illinois. In fact, the Illinois Department of Insurance received more than 3,370 auto insurance complaints in 2023. Claim processing issues, such as unreasonable delays, accounted for most of these complaints.
Dealing a claim allows the insurer to:
Earn Interest from the Pending Settlement
Delaying the claim progress for as long as possible financially benefits the insurer, even if the insurer eventually settles the claim. The money will keep earning interest in the insurance company’s bank account, rather than your account. Holding onto the payout funds can earn the insurer a decent interest, especially when dealing with higher settlements for brain injuries.
Push You to Accept a Low Settlement Offer
A lengthy claim process can take a huge toll on your physical, psychological, and financial well-being. The financial constraints and stress from an intentionally delayed claim may pressure you into accepting a settlement offer the insurance company sends your way, regardless of how low it is.
Pressure You into Quitting Pursuing Compensation
The insurance company may intentionally prolong the claim process to pressure you into giving up on pursuing compensation. It is not uncommon for claimants to abandon the claim process, especially if their health insurance covers their medical bills. The insurance company may increase the chance of not spending any money to pay a claim by using endless delay tactics.
Pushing the Case Past the Statute of limitations
An insurance company may use delay tactics so that you miss the filing deadline for personal injury claims, which is generally within two years from the accident date. You will lose the right to sue the insurer once the statute of limitations expires.
How Do Delays in a Chicago Car Accident Claim Affect Your Settlement?
On top of wasting your time, delays in a Chicago car accident claim reduce the value of your claim by forcing you to settle for the first offer or allowing evidence to degrade.
Forcing You to Settle for an Amount that Does Not Reflect the True Value of Your Claim
Medical bills, vehicle repair costs, and lost earnings due to missed time from work can leave you struggling financially, especially if the insurer deliberately delays the claim process. The financial strain weakens your negotiation position and increases your chances of accepting a lower settlement.
Evidence Can Degrade, Disappear, or Weaken Over Time
Evidence preservation becomes difficult when claims take longer than necessary to settle. Surveillance footage may get wiped off or become inaccessible because of hardware failures. Key eyewitnesses may forget crucial details or become hard to locate over time. Such gaps can reduce your recoverable damages, especially if your case involves shared fault.
What Can You Do When an Insurance Company Delays Your Car Accident Claim?
It’s natural to feel helpless when an insurance company delays your car accident claim. Fortunately, there are steps you can take to protect your rights and help your claim proceed. They include:
Recording Every Interaction
Document communication between you and the insurance company. Record key details of conversations you have with an insurance company representative. Be sure to record the date and time of the interaction as well as the name of the representative. Send an email summarizing what was discussed immediately after a phone call or in-person meeting.
Carefully Going Through Your Insurance Policy
Review your insurance policy before concluding the insurer is intentionally delaying your claim. Go through the documentation rules, deadlines, and available coverage. The goal is to ensure the insurer can’t use a missing document or deadlines to justify delaying or denying your claim.
Filing a Complaint with the Illinois Department of Insurance (IDOI)
Submit a complaint to the IDOI if the insurance company continues to delay the progress of your claim without a justifiable reason. Support your complaint with a detailed record of your interaction with the insurer. Copies of your insurance policy, letters, and emails received or sent to the insurance are examples of documents to include.
Retaining a Chicago Car Accident Attorney
Getting a Chicago car accident lawyer involved can also help your claim move forward, especially when dealing with an uncooperative insurer. Your lawyer can send a demand letter that details the claim, specifies the compensation amount, and highlights relevant Illinois statutes. The lawyer can then initiate a bad-faith insurance lawsuit if the insurance keeps delaying the claim without a valid reason.
Delayed car accident claims in Chicago, Illinois, can be frustrating. Don’t give up your right to pursue the compensation. Instead, contact a car accident lawyer at Lloyd Miller Law Group for legal support. Note that we offer free initial consultations and do not charge you any legal fees until we recover damages.
FAQs
How do insurance companies delay car accident claims?
Insurance companies delay car accident claims by failing or taking longer than necessary to respond to emails or return calls. They may also ask for too much or irrelevant information.
How long can an insurance company delay a car accident claim in Chicago?
Under Illinois laws, insurance companies have 15 days to confirm receipt of a claim and 30 days to decide it. A written justification is compulsory for delays past 30 days. Justifiable reasons for delays include disputed liability and serious injuries. Generally, straightforward claims can take a few weeks to resolve, while complex ones may take several months to a year.
How can a Chicago car accident attorney help when an insurance claim is delayed?
A Chicago car accident attorney can fast-track a delayed insurance claim by taking control of all communications with the insurer, compiling relevant evidence, and applying legal pressure on the insurer. Sending demand letters and informing the insurer of bad faith allegations are some steps your lawyer can take to compel the insurer to act.
