After a serious accident, dealing with insurance company delay tactics and standard procedures can add another layer of stress to an already difficult situation. A claim may involve repeated requests for information, disputes over fault, questions about medical treatment, or settlement offers that don’t reflect the full extent of a plaintiff’s losses.
For plaintiffs facing mounting expenses while waiting for a claim to move forward, qualifying for pre-settlement funding may provide financial flexibility that reduces the pressure to accept a settlement before the case is fully evaluated.
The Three D’s of Insurance Company Delay Tactics
The deny-delay-defend framework can help explain how insurers may challenge personal injury claims. While not every claim follows this pattern and some delays are a legitimate part of claim investigation, these tactics can contribute to prolonged disputes.
1. Deny: Challenge the Claim From the Start
An insurer may deny a claim by arguing that the plaintiff was partly or primarily responsible for the accident, a pre-existing condition contributed to the injuries, the accident did not cause the claimed injuries, or the policy does not provide coverage. Depending on the circumstances, a denial may lead to further negotiations, an appeal, or litigation to challenge the insurer’s position.
2. Delay: Slow the Claim and Increase Financial Pressure
Insurance claim delays may involve repeated requests for medical records, employment documentation, accident reports, or other evidence. Other potential delays include scheduling multiple independent medical examinations (IMEs), changing adjuster assignments, or routing negotiations through staff without authority to resolve the claim. While individual requests may be reasonable, repeated or overlapping demands can prolong the process.
3. Defend: Build Arguments Against the Plaintiff
Once a claim becomes more contentious or enters litigation, defense attorneys may examine arguments related to liability or damages, like:
- Medical history
- Prior injuries
- Employment records
- Social media activity
- other evidence
For example, they may contend that an injury was pre-existing or that the plaintiff contributed to the accident. Responding to these challenges can require additional evidence, investigation, and legal work.
Why Insurance Companies Delay Settlements
Not every delay is intentional. Insurers may need time to investigate a claim, review medical records, evaluate liability, and determine damages, and state laws may set requirements for how claims are handled.
However, prolonged disputes can increase financial pressure on plaintiffs who need money now, making it harder to wait while their attorney continues building the case. The National Association of Insurance Commissioners (NAIC) notes that unfair claim delays, denials, or poor communication may warrant a complaint to a state insurance department.
The Financial Pressure Behind a Delay in Insurance Claim Settlement
For a plaintiff who cannot work or afford rent, medical treatment, and other basic expenses, financial pressure can make it harder to wait for a disputed claim to resolve.
How to Fight an Insurance Company During a Personal Injury Claim
Plaintiffs wondering how to fight their insurance company should generally work with an attorney rather than handling a disputed claim alone. Key steps may include:
- Document communications – Keep records of calls, emails, information requests, delays, and settlement offers.
- Preserve evidence – Maintain photographs, medical records, bills, accident reports, witness information, and other relevant documentation.
- Respond carefully – Provide requested information while having an attorney review requests that may be overly broad or unrelated to the claim.
- Challenge unsupported positions – An attorney can address disputes over liability, causation, comparative negligence, or damages using supporting evidence.
- Evaluate settlement offers – Your attorney can determine whether an offer reasonably accounts for medical expenses, lost income, future damages, and other losses.
- Consider legal remedies – Depending on state law and the circumstances, your attorney may recommend further legal action or a complaint to the state insurance department.
How to Fight a Car Insurance Company or Auto Insurance Company
After a car accident, evidence can become particularly important. As noted above, plaintiffs should preserve photographs of the vehicles and accident scene, repair estimates, medical documentation, witness information, police reports, and other evidence related to how the crash occurred.
Fault disputes may involve questions about traffic signals, right-of-way, vehicle speed, road conditions, visibility, or whether either driver was distracted or impaired. Depending on the circumstances, an attorney may also investigate available video footage, vehicle data, or other evidence that can help establish what happened.
What to Do When an Insurance Company Delays Claim Settlement
Keep a record of what you’ve submitted, what the insurer has requested, and any explanations they give for the delay. You can also ask what information is still needed and why. If the delay continues or the insurer’s position doesn’t seem supported, talk with your attorney about your options, which may include contacting your state insurance department.
Insurance Company Bad Faith Tactics
“Bad faith” generally refers to an insurer failing to meet its legal obligations when handling a claim. Depending on state law, potential concerns may include:
- Unreasonable delays
- Inadequate investigation
- Poor communication
- Refusing to make a reasonable settlement offer when liability is clear
Whether conduct qualifies as bad faith is a legal question, so plaintiffs should discuss their situation with an attorney familiar with applicable state law and how to fight bad faith insurance companies.
How Pre-Settlement Funding Can Neutralize Delay Tactics
Pre-settlement funding may provide funds for basic expenses while an attorney continues pursuing the claim, reducing the pressure to accept an early settlement simply because money is needed now.
Funding Can Reduce Pressure During a Denial
A denied claim may take time to challenge, especially those involving:
- Fault
- Pre-existing conditions
- Causation
- Policy coverage
Pre-settlement funding may help qualifying plaintiffs cover essential expenses while their attorney works to address the insurer’s position.
Funding Can Help a Plaintiff Wait Out Delay
When documentation requests, claim reviews, or negotiations drag on, access to funds may reduce the urgency to accept a low settlement offer. This can give an attorney more time to investigate the claim, evaluate damages, and negotiate or prepare for litigation.
What Settlement Research Says About Litigation Funding
Research on litigation funding suggests that access to funding may influence how settlement negotiations play out by reducing financial pressure on plaintiffs.
A Harvard Law Journal article argues that when plaintiffs have access to capital during pretrial negotiations, they may be better positioned to negotiate based on the merits of their claims rather than their immediate financial circumstances.
While funding does not guarantee a larger settlement, having more financial flexibility may give plaintiffs and their attorneys additional time to pursue a resolution that more accurately reflects the underlying value of the claim.
FAQs About Insurance Company Delay Tactics
What is the best way to fight an insurance company?
Work with an experienced personal injury attorney, document communications, preserve evidence, and respond to disputed positions with supporting documentation.
Can an insurance company make a lowball settlement offer?
An insurer may make an offer that does not reflect the full value of a claim. An attorney can review the offer and negotiate for damages supported by the evidence.
What are common insurance bad faith tactics?
Potential examples include unreasonable delays, inadequate investigations, poor communication, or refusing to make a reasonable settlement offer when the circumstances and applicable law require one. Note that standards vary by state.
Can pre-settlement funding help if an insurance company is delaying my claim?
Pre-settlement funding may provide access to funds for basic expenses while the claim continues. It does not resolve the insurance dispute, but it may reduce the financial urgency to settle.
Is pre-settlement funding a lawsuit loan?
No. While sometimes incorrectly referred to as a “lawsuit loan,” pre-settlement funding is structured differently from a personal loan. Eligibility is based primarily on the case and its potential recovery rather than simply the plaintiff’s credit score.
For answers to more general pre-settlement funding questions, refer to our main FAQ page.
Work With Oasis Financial While Your Claim Continues
Oasis Financial has worked with numerous plaintiffs over the years, providing financial flexibility for basic expenses while their attorney continued pursuing their personal injury claim. We evaluate cases individually and provide non-recourse pre-settlement funding, meaning repayment is tied to the outcome of the case. If the case does not result in a recovery, the plaintiff does not have to repay the funding.
If financial pressure is making it difficult to wait for your claim to resolve, contact us with any questions you have about pre-settlement funding. When you’re ready, find funding near you or apply online to see if you may qualify.
This article is provided for general informational and educational purposes only and does not constitute financial, investment, legal, accounting, or tax advice. No attorney–client, advisory, fiduciary, or other professional relationship is formed by your access to or use of this content. You should not act or refrain from acting based on any information herein without obtaining advice from qualified professionals who are familiar with your particular circumstances. The authors and publisher make no representations or warranties, express or implied, and disclaim all liability for any loss or damage arising from reliance on or use of this article.
Oasis provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in CO, CT, MD and SC will be offered a funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences, therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.