Why Insurance Companies Usually Do Not Pay Auto Accident Claims Quickly

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As an Orlando personal injury attorney, one of the things that clients frequently do not understand is why insurance companies do not pay auto accident claims more quickly.

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Rare Cases Where Insurance Companies Pay Auto Accident Claims Quickly

why insurance companies delay payment on auto accident casesIn very rare auto accident cases, insurance companies will pay auto accident claims quickly. This generally includes only those auto accident cases in which the fault of the other driver is absurdly obvious, and the injuries and typically medical bills clearly exceed the value of any available policy limits. Even in those cases, they will not pay quickly without a personal injury attorney. The only reason they pay those claims quickly is because they can be hit with something called an insurance bad faith claim if they do not.

Insurance Bad Faith The Only Motivational Tool

Bad faith cases are those in which the insurance company could and should have paid the auto accident claim, had they been acting in the best interests of the insured. They are very difficult and time-consuming to establish and not typical. But they are the only stick that plaintiffs have against insurance companies — and they have an effect when the injuries are significant — especially if the policy limits are low. But, if the insurance company does not pay the policy limits in those car, truck, motorcycle, biking or pedestrian accident cases, then they risk being on the hook for the entire amount of the damages (above the policy limits). So they are inspired to pay those claims quickly.

The Only Good Reason For Delaying Payment In An Auto Accident Case

Another reason for delays is that the human body must receive treatment and heal after an accident, unless the accident caused death rather than injury. This treatment and healing takes time. We do not know the extent of the ultimate injuries at the outset of the case. This is one reason why it is important to hire an Orlando auto accident attorney who will not rush your case. Moving too quickly through your auto accident case often will reduce the value because we do not yet know how all of your injuries will play out.

Insurance Company Profits Are The Only Thing That Matter To Them

insurance companies benefit from not paying auto accident claims more quicklyBesides those two situations, the worse news is that insurance companies do not pay because they have had a new operational model since around the mid-1990’s, which is focused heavily on profits above all else. I cannot overstate the negative impact this development has had on timely or fair resolution of motorcycle, car, truck, bicycle and pedestrian accident claims against insurance companies. These companies were hit hard by Hurricane Hugo. So one of the biggest, Allstate, began consulting with a New York efficiency firm. This firm advised them to begin a deliberate process of delaying payment of claims, offering very low settlement amounts, below what was actually owed, and defending lawsuits vigorously. This is a very big reason why you should never deal with an insurance company without an attorney.

Now Getting Real Justice Is More Difficult Than Ever

So the insurance companies switched from having a pay somewhat fairly model, to a deliberate and very calculated attempt to treat every claimant unfairly. This is unfair even to their own insureds (those who purchased insurance from them), since they paid for coverage that they really do not get. Often the only way even an auto accident attorney can get them to play fairly is by filing a lawsuit. Some settlement mill firms do not file lawsuits but instead encourage people to take the last highest offer. This may be the best a personal injury attorney can do in a less serious injury case, such as one involving only soft tissue injuries, because a lawsuit cannot be justified as a practical matter. But settlement mill practices operate as an extreme injustice to those with moderate to severe injuries. The insurance company pays far less than they should and the case is resolved quickly. This is absolutely not how a moderate to serious or catastrophic personal injury lawsuit should ever be handled.

Why Would They Do This?

why insurance companies delay payment in car, truck, motorcycle, bicycle and pedestrian accident casesThe insurance companies benefit in a few different ways from delaying motorcycle, car, truck, bicycle and pedestrian accident claims. First, the injured person may be forced to settle more quickly, and for less, because they need the money. The insurance companies also benefit by holding onto their money for longer. In some cases, the insurance company may benefit if someone is older or catastrophically injured because the person may die. If the person dies, the resulting lawsuit will generally be worth less than if the person lived and needed a lifetime of serious medical care. They also benefit if the injured person does not understand that they do not have to accept low ball offers, which is usually what happens if they do not hire an auto accident or personal injury attorney.

I Fight Vigorously & Can Help You More If You Call Sooner Rather Than Later

If you were injured during an auto accident, I cannot more strongly urge you to call me, and quickly. You need an Orlando personal injury attorney who will fight low ball offers with hard ball tactics. I am that person. And time is money in these cases. You only pay me if I recover money for you, so consultations are free.

Where I Accept Cases

I am an Orlando personal injury attorney, but I will provide the same level of highly personalized service in moderate to severe injury cases all over the states of Florida and Georgia. This includes nearby Orlando suburbs such as Winter Garden, Ocoee, Clermont, Windermere, Dr. Phillips, Kissimmee, Winter Park, Casselberry, Maitland, Daytona Beach, Deland, Deltona, Altamonte Springs, Apopka, Tavares, Eustis, Leesburg, Mount Dora, and Leesburg. I will also accept moderate to severe injury cases from other parts of Florida or Georgia, including Tampa, Melbourne, Tallahassee, Jacksonville, West Palm Beach, Miami, Valdosta, Macon, Atlanta, and all points in between.

Call Now! (407) 803-2139

Related Posts:

Why You Should Never Deal With An Insurance Company Without An Attorney

Pitfalls Of Hiring A Personal Injury Settlement Mill Law Firm


About the Author:

Tina Willis is a serious injury, accident & death lawyer, based in Orlando, Florida, although she accepts cases throughout the states of Florida and Georgia. Ms. Willis has won many prestigious industry awards, best personal injury & car accident lawyer awards, and recovered multi-millions for her clients. She was formerly a law professor, and graduated second in her law school class back in 1997. She formerly worked for some of the largest defense firms in the country, often on multi-million dollar cases. She used to represent large corporations & insurance companies, so she knows their playbook. We are very focused on the highest quality client service, and maximizing the value of every case we handle. We vigorously prosecute serious injury and death cases caused by auto accidents, semi-truck accidents, slip and fall accidents, products & premises liability cases, as well as medical malpractice.
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  1. Luke Ciciliano  February 3, 2014

    Thanks for sharing Tina,

    It’s good that you mention that profit motivation of the insurance industries, which filters all the way down to the adjusters. Many adjusters are quite good at coming across as friendly and acting as if they are looking out for one who is injured. Unfortunately, in my experience, many people go for the routine.


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