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May 30, 2025 by Greg Baumgartner
Insurance companies are for-profit businesses with a primary objective to protect their bottom line. One of the most common tactics used to reduce payouts is delaying valid claims. Understanding why insurance companies delay valid claims can provide insight into these strategies. These delays are not accidental or administrative—they are strategic moves designed to pressure claimants into accepting lower settlements or abandoning the claim altogether. By stalling payments, insurers can keep money invested for longer and improve their cash flow.
Adjusters may request redundant documentation, reassign your claim to new representatives, or claim they are “still reviewing” details long after receiving complete information. Each day of delay increases the insurer’s advantage, especially when victims face mounting medical bills, lost income, and financial instability.
Insurance companies often use their size and resources to delay the claims process. Some of the most common delay tactics include:
Insurers may ask for the same documents multiple times or demand excessive paperwork not immediately relevant to the claim. Document requests often create unnecessary hurdles and cause significant delays.
Carriers frequently argue that treatment was unnecessary, too expensive, or unrelated to the accident. These tactics are designed to delay settlement negotiations and exhaust the claimant’s patience and resources.
Adjusters may delay returning calls, take weeks to respond to emails or give vague updates. These intentional bottlenecks hinder progress and frustrate the parties involved.
Shuffling a claim between multiple adjusters restarts the process, causes confusion, and leads to inconsistencies that delay resolution.
Insurance companies often initiate unnecessary investigations under the guise of verifying details. These investigations can take months and serve no purpose other than dragging out the process.
Delaying valid claims gives insurance companies powerful leverage. Claimants often find themselves in financial distress, unable to afford ongoing treatment or cover basic expenses. This financial pressure leads many victims to accept quick, undervalued settlements to obtain some relief. Insurance companies are aware of this and employ the strategy to protect their profits at the expense of the injured.
In personal injury cases, the longer a claim drags on, the more desperate a claimant becomes. The insurer then presents a lowball offer, knowing the claimant is in no position to wait any longer.
Insurers frequently exploit legal gray areas to justify slow claim handling. For example, they may argue they have not received “sufficient proof of loss” or that they require “additional medical evaluations” before approving any compensation. These vague justifications are often legal cover for delay tactics.
Some companies even hide behind internal procedures and claim they are “awaiting supervisor review” or “pending third-party assessments.” These methods create the illusion of due diligence while serving only to stall resolution.
Every insurance contract carries an implied covenant of good faith and fair dealing. When insurers delay claims without a valid reason, they may be acting in bad faith. In many states, this can open them up to additional liability, including punitive damages.
Signs of bad faith delays include:
Bad faith insurance practices are not just unethical—they might be grounds for legal action. Victims of bad faith claims practices by their insurer, may have the right to file a lawsuit and seek compensation beyond the original claim amount.
When your valid insurance claim is being delayed, there are steps you can take to protect your rights and increase the chances of a timely resolution:
Document Every Interaction
Keep detailed records of phone calls, emails, and letters exchanged with the insurance company. Note dates, names, and summaries of conversations. These records are critical in proving bad faith.
Submit All Requested Documents Promptly
Provide all requested documentation in a timely and organized manner. Acting promptly eliminates any excuse for delay based on missing paperwork.
Send a Written Demand for Action
Formally request a status update in writing. Demand a response within a specific timeframe and state that you will consider legal options if delays continue.
Contact a Personal Injury Attorney
A skilled personal injury lawyer or attorney can intervene, apply pressure, and initiate legal proceedings if needed. Involving a lawyer often signals to insurers that delay tactics will not work.
Experienced personal injury attorneys are familiar with insurance delay strategies and know how to counter them effectively. Attorneys can gather evidence of bad faith, negotiate directly with insurers, and escalate the matter through litigation when necessary.
An attorney can also level the playing field, preventing the insurer from exploiting your lack of experience or resources. By stepping in early, a lawyer can help you avoid accepting a low settlement and ensure you receive the compensation you are legally entitled to.
Delays are especially common in personal injury claims arising from car accidents, truck crashes, and premises liability cases. Victims often require long-term medical treatment and ongoing care. Insurance companies delay these claims intentionally to avoid paying high-dollar settlements.
In motor vehicle accident claims, adjusters may argue:
These assertions are rarely based on evidence. They are used to delay payouts and shift the burden of proof onto the victim.
Delays can directly reduce the value of your claim. The longer a claim is delayed, the more likely victims are to settle for less than full value. Pain, frustration, and financial hardship all work in the insurer’s favor. Delayed settlements also risk losing critical evidence, witness availability, and clarity of memory—all of which can weaken your case.
By slowing the process, insurers also reduce the perceived urgency of the case, making it less likely that juries or judges will award substantial compensation if the case goes to trial.
If your claim is being delayed without justification, you have options. Do not let the insurance company control the timeline. A qualified attorney can challenge these tactics, protect your rights, and hold insurers accountable for stalling.
At Baumgartner Law Firm, we aggressively fight back against insurers who delay valid claims. With decades of experience and a proven record of results, we stand up for injury victims across Texas. Call us today for a free consultation and let us help you recover what you’re owed without delay.
Contact the Houston personal injury law firm of Baumgartner Law Firm at (281) 587-1111.
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Related Resources:
How Delay in Medical Care Hurts Your Car Accident Case
Handling an 18-Wheeler Case Without an Attorney
Since establishing Baumgartner Law Firm in 1985, Greg Baumgartner has built a reputation as one of Houston’s leading personal injury attorneys, dedicated to representing severely injured victims and families who have lost loved ones due to negligence.
Greg holds two law degrees, a distinction earned by less than 1% of all attorneys, demonstrating his exceptional legal expertise. He is also a prestigious Trial Lawyers College graduate, further enhancing his skills in trial advocacy and litigation.
His relentless commitment to legal excellence and client advocacy has earned him recognition from prestigious organizations, including Super Lawyers, the Top 100 Trial Lawyers, and many others.
With decades of experience, Greg has consistently received top peer reviews. He holds a preeminent rating, a testament to his unwavering dedication to securing justice and maximum compensation for his clients.
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