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Behind The Delays: Understanding Factors Behind Delayed Insurance Claims Settlements

Insurance BY Nabamita Jan 01, 2024
Delayed Insurance Claims Settlements

Even with the latest vehicle safety technology and strict regulations imposed on drivers, commercial fleets have an alarming accident rate. Fortunately, companies aligned with the right insurance provider get a chance to recoup some of their losses; both on the vehicle and business interruption emanating from the vehicle’s inability to facilitate normal business operations.

However, insurance companies don’t always pay promptly. While the law states that simple claims should be settled in 30 days, insurance companies are given a chance to investigate claims for more serious accidents. This may take longer than expected, resulting in significant losses for the business.

Therefore, it is important for any business owner operating a fleet to stay up to date with all laws about how long they may have to wait to receive their settlement. In that regard, here’s everything you need to know about vehicle insurance claim settlements.

What’s The Time Limit For Insurance Claim Settlements?

What's The Time Limit For Insurance Claim Settlements?

If you or an employee has been injured in a car accident or the vehicle has sustained significant damage, you’ll likely have to deal with an insurance company. This jointly applies to instances when another party is at fault and when you’re the at-fault party.

Regardless of the situation, the goal is simple: get a settlement. Although most insurance will honor the terms stipulated in the insurance contract, the time it takes for them to pay the claim can vary dramatically depending on the state.

By law and according to a set standard of ethics, insurance companies are required to investigate, make a report, and pay a claim as soon as possible. In most cases, insurance companies do their due diligence and pay claims within 30 days. However, certain situations, including the complexity of the claim, may drag on the process.

What Factors Can Lengthen An Insurance Claim Settlement?

While their business model is geared toward acting in their client’s best interest, insurance companies must also protect themselves from fraud and overpaying on otherwise menial claims.

In that regard, here are a few things insurance companies do that may lengthen your claim settlement.

Investigating Submitted Claims

No matter how legitimate your claim may be, insurance companies will never take you at your word. Before paying a settlement, insurance companies typically conduct a thorough investigation of submitted claims. This may include everything from collecting all necessary information, reviewing evidence, consulting experts, and much more.

Reviewing Your Policy

Commercial vehicles are tied to several insurance policies to safeguard both the company and its drivers. Before making any form of compensation, insurance companies should review and interpret the policies to ensure proper compensation.

While they’re at it, they may need to review a lot of documentation, which may take some time.

Damage Evaluation

Damage Evaluation

Damage evaluation is one of the biggest determining factors when it comes to working out the amount paid in insurance claims. As such, insurance companies investigate the nature and extent of the damage and consult relevant experts to estimate the total cost of damages.

Contested Claims

Despite having an insurance cover, things don’t always go your way. The insurance company may dispute your claim for several reasons, including insufficient evidence to support your claim, a lapse in coverage, and other reasons.

Disputed claims may take some time to resolve and require the assistance of a lawyer to help prove the validity of the claim. This often results in a lawsuit that may take a lot of time to resolve, depending on the complexities of the claim.

What Can You Do To Speed Up The Claims Settlement Process?

Speed Up The Claims Settlement Process

Having your claim settlement delayed is not the end of the road. As a business owner, you are entitled to a speedy payout. You just need to know how to make it happen. While you may choose to go at it alone, having a personal injury lawyer at your side significantly lightens the burden and improves your chances of a speedy payout.

Here’s what to do if your insurance claim settlement takes longer than it should:

Document Everything

Insurance claims processes are a matter of technicality. As such, any document you have about the claim may help speed up the settlement process. This includes everything from your communications with the insurer to any supporting evidence that may strengthen your case.

Review The Insurance Policy

Like all contracts, insurance policies have detailed terms and conditions that must be adhered to by both parties. Understanding the insurance policy, including the coverage, timeline, and insurer obligations, may help strengthen your argument against the delayed settlement.

Seek Legal Representation

Despite your best efforts and previous experience dealing with insurance companies, dealing with them on your own can be daunting. That’s why it’s always advisable to consult an experienced personal injury attorney to help with your case. An attorney can help negotiate with the insurer and provide effective guidance on the best course of action.

Stay Informed On What Goes On When Making An Insurance Claim

Stay Informed On What Goes On When Making An Insurance Claim

As a business owner, dealing with the hurdles of delayed insurance settlement claims involving your employees or vehicles in your company’s fleet can be daunting. That’s why it’s always advisable to review your policy and keep relevant supporting evidence to support your claim. Seeking legal representation from an experienced personal injury attorney can also help speed up the negotiation process, leading to a speedy settlement.

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Nabamita Sinha loves to write about lifestyle and pop-culture. In her free time, she loves to watch movies and TV series and experiment with food. Her favorite niche topics are fashion, lifestyle, travel, and gossip content. Her style of writing is creative and quirky.

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