One of the most common questions clients ask when they first meet with a personal injury attorney is, “How long will my case take to settle?” While the desire for a quick resolution is understandable, the reality is that personal injury claims rarely settle overnight.
Kentucky law requires insurers to act promptly and in good faith when processing claims. However, the state’s laws give insurers some leeway rather than imposing strict deadlines. This lack of strict deadlines means that the settlement timeline can vary significantly, ranging from a few months to several years, depending on a multitude of factors unique to each case.
Timeframe For Responses From An Insurer
Kentucky’s law about unfair claims settlement doesn’t clearly state what insurance companies must do when settling claims. Instead, the state decided to let its insurance regulators set the deadlines. The resulting regulations set out the following timeframes for handling claims:
- 15 days to respond to filings and communications
- 30 days to determine liability or request more information after receiving proof of losses
- 30 days to tender payment after accepting liability
Thus, in an ideal scenario, you would receive an insurance check 75 business days after filing your claim. However, these timeframes aren’t strict deadlines. Moreover, the insurer can introduce delays at several stages in this process.
Why Insurance Companies Delay Claims
Unfortunately, most cases do not follow this ideal timeline. Part of the problem is inherent in the insurance system’s for-profit nature. Insurers do not make money by paying claims. Instead, they make money by investing premiums. The longer they can hold onto this money, the more money they can make from it.
As a result, insurers often delay as much as possible. By slowing down the process, they become more profitable. However, companies must remain mindful of the laws and regulations to avoid any violations. As a result, insurers will often delay up to the amount they can legally get away with.
The Role Of Evidence In Slowing Down Claims
However, another part of the problem comes from the nature of personal injury claims. Liability insurers require proof that the insured party acted negligently. Moreover, you must provide evidence of your losses, such as medical records and financial files. An insurer cannot do its job without evidence proving liability and loss.
When Legal Disputes Cause Delays
Some cases involve genuine legal or factual disputes. For example, after a car accident, you may blame the other driver for running a red light. The other driver may dispute this fact and argue that their light was still yellow and that you ran the red light. These situations might require additional investigation to determine who correctly described what happened.
Common Tactics Insurers Use To Stall
For all these reasons, the insurer could introduce delays in processing your claim in the following ways:
- Requesting that you provide additional proof of liability or loss
- Denying liability to force your lawyer to submit additional evidence and arguments
- Making a low offer
In many cases, insurers use all of these tactics to disorient claimants.
The Lowball Settlement Strategy
The rules do not impose any timeframe to negotiate a settlement. Thus, the insurer can still delay the process by accepting liability to comply with the law and its policy terms but offering a low settlement.
This tactic has two benefits for insurers. First, an unrepresented claimant might accept the low offer. Without legal representation, the claimant might not know that they could negotiate for more.
Second, the low offer sets the starting point for the negotiations. An unrepresented claimant might not understand the true value of their claim and, as a result, counter with an offer that follows the insurer’s lead.
How Delays Pressure Claimants
In either case, the insurer can drag out the negotiation process or use the delays to pressure the claimant into accepting a low offer. Specifically, a claimant’s frustration and desperation for resources to pay for medical care and living expenses might drive them to settle the claim for too little.
How A Lawyer Can Help With The Claims Process
A qualified lawyer can assist their client with the claims process in several ways. For one thing, they can track the timing of the insurer’s responses to ensure it follows Kentucky’s insurance regulations. Any violation might provide grounds for a bad-faith insurance case.
Additionally, attorneys have strong negotiating skills and experience valuing injury claims. These skills can prove valuable once the insurer accepts liability and offers to negotiate a settlement.
Finally, a lawyer can prepare and file a lawsuit if necessary. Insurers generally avoid paying to litigate cases they know they might lose, so the threat of a lawsuit will often keep the insurer moving toward settlement.
Contact Ross Mann Personal Injury Lawyers For A Free Consultation With A Lexington Personal Injury Lawyer
Every personal injury case is unique, but a good lawyer can help keep your settlement on track in many situations. Contact Ross Mann Personal Injury Lawyers to discuss your injury claim and how we can help you obtain a fair settlement that covers all of your losses. Call us today at (859) 413-3900
