what to do if car insurance company is stalling
Car insurance is a crucial investment for car owners as it provides financial protection in case of any accidents or damages. However, dealing with car insurance companies can be frustrating, especially when they stall or delay payments. This guide will help you understand what to do if your car insurance company is stalling.
Table of Contents
- Reasons Why Insurance Companies Stall
- Document Your Communication With The Insurance Company
- Follow Up With The Insurance Company
- File a Complaint with the State Insurance Department
- Hire an Attorney
- Consider Mediation or Arbitration
- File a Lawsuit
If you have ever filed a car insurance claim, you know how frustrating it can be when your insurance company stalls or delays payments. Stalling tactics can include requests for excessive documentation, unnecessary investigations, and unreasonable delays in communication. Fortunately, there are several steps you can take to ensure your insurance company pays out your claim promptly.
Reasons Why Insurance Companies Stall
Insurance companies may stall for various reasons, including:
- Lack of resources to handle the claim volume
- Insufficient information to process the claim
- Disagreement over the claim’s value or liability
- Insufficient documentation to support the claim
- Fraudulent claims
Document Your Communication With The Insurance Company
One of the most important things you can do when dealing with an insurance company is to document all communication. Make sure to keep records of all phone conversations, emails, and letters exchanged with the insurance company. These records may be useful in proving that the insurance company is stalling or delaying payment.
Follow Up With The Insurance Company
If you notice that the insurance company is taking too long to process your claim, follow up with them to inquire about the status of your claim. Make sure to document these communications as well. It is essential to keep the insurance company accountable for the processing of your claim.
File a Complaint with the State Insurance Department
If your insurance company continues to stall or delay payments, file a complaint with the state insurance department. Most states have an insurance department that regulates insurance companies operating in the state. The insurance department can investigate your complaint and may take regulatory action against the insurance company.
Hire an Attorney
If you have followed the above steps and still not received payment, you should consider hiring an attorney. An experienced attorney can help you navigate the legal system and negotiate with the insurance company on your behalf.
Consider Mediation or Arbitration
Mediation or arbitration is an alternative dispute resolution process that may help you resolve your claim without going to court. A neutral third party facilitates mediation or arbitration, and the process is less formal than a court proceeding.
File a Lawsuit
If all else fails, you can file a lawsuit against the insurance company. Before filing a lawsuit, consult with an attorney to evaluate your case’s strength and whether a lawsuit is the best course of action.
Dealing with an insurance company that is stalling or delaying payments can be frustrating. However, by following the above steps, you can ensure that your claim is processed promptly. Make sure to document all communication, follow up with the insurance company, file a complaint with the state insurance department, hire an attorney, consider mediation or arbitration, and file a lawsuit if necessary.
Can I sue my insurance company for bad faith?
Yes, you can sue your insurance company for bad faith if they have unreasonably delayed or denied your claim.
Can an attorney help me speed up my claim?
Yes, an experienced attorney can help you negotiate with the insurance company and ensure your claim is processed promptly.
Can mediation or arbitration be binding?
Yes, mediation or arbitration can be binding if both parties agree to it. Binding arbitration means that the decision made by the arbitrator is final and enforceable.
How long does it take to resolve a stalled insurance claim?
The time it takes to resolve a stalled insurance claim can vary depending on the complexity of the claim, the insurance company’s policies, and the steps taken to resolve the issue. It could take anywhere from a few weeks to several months.
What should I do if the insurance company denies my claim?
If the insurance company denies your claim, you should review the denial letter carefully to understand the reasons for the denial. If you believe the denial is incorrect, you can appeal the decision with the insurance company or file a complaint with the state insurance department.