Insurance companies can take a while to pay a settlement. Even when it’s obvious that someone else caused the accident, like a rear-end, and there’s a police report and witnesses, it can still take months to get paid. 

Your case goes through a lot of steps. First, someone collects your basic information. Then someone looks at your injuries and tries to figure out who’s at fault.  More people may have to look at your case if it gets tricky or a lawsuit is involved.

Sometimes, the insurance adjuster can’t agree to a settlement check because it’s too much money. They will have to check with a higher up or leave it to a committee to decide. This can take a while. And if you’ve got serious injuries, it can take even longer to get a payout, because the process is trickier.

Reasons for Settlement Delays

Here are some of the reasons why the insurance company can delay your settlement check:

Internal Timelines

The companies themselves have timelines that are intentionally designed to slow down the entire process. They decide when they will look at your claim, sometimes 30 days, sometimes 60, or even 90. They say it’s reasonable, but for you, it feels like they forgot you or maybe even denied your claim in bad faith.

A single adjuster can have hundreds of claims to deal with. Your file is just one among many. They could also use tricky old software or operate on slow internal processes. Your documents could get misplaced, and you may be asked to submit them again. It can be pretty frustrating.

Extended Medical Treatment

If you are still undergoing therapy, insurance companies won’t pay until they know how bad your injuries really are.

They check every doctor’s note, every therapy session, every bill. If your attorney sends you to a special doctor, they might question it, saying maybe you didn’t need it. 

The more complicated your injuries, the longer it takes to reach maximum medical improvement. Sometimes your body heals slowly, and the insurance company uses that to keep you waiting. 

Going to Court  

Before a lawsuit, your lawyer can talk directly to the adjuster, which is usually faster. But once a lawsuit starts, defense attorneys take over. 

Then the rules of court slow everything down. Discovery, depositions, motions, hearings, pretrial schedules — all of it takes months or years. Sometimes 18 to 24 months or more before it’s done. 

Lawyers on the defense side don’t care about speed. They just investigate and fight for their company. 

How Can You Handle This Situation?

The first thing to you have to do is understand why it’s happening. If you know what the problem is, it’s easier to figure out what to do next. Panicking doesn’t help anyone.

You should do is get yourself a lawyer. A good lawyer will know what laws the insurance company can be held accountable for. That means they can push the company to do the right thing, and sometimes they can also speed up the process. If your contract is being breached, they know the most appropriate measures to take.

Lawyers can also fight for a full payout. That means if the insurance company is trying to lowball you, the lawyer can argue for a better payout and make sure you get what you’re actually owed.

Key Takeaways

• Insurance companies usually move slowly on purpose.
• If you’re still getting treatment, the insurance company will wait to decide on a payout.
• Once a lawsuit starts, everything slows down.
• The best way to handle it is to get yourself a pretty good lawyer.
• Your lawyer won’t let the insurance company cheat you out of a fair payout.