Why Insurance Companies Delay Settlements (And How to Wait Them Out)
4 min read read
Published Apr 2, 2025
The "Delay, Deny, Defend" Strategy
If you feel like your insurance claim is moving incredibly slowly for no reason, you aren't imagining it. Insurance companies profit by holding onto their money for as long as possible. They invest those premiums to earn interest.
Every day they delay paying your claim is another day they earn money on that cash. Furthermore, they know that financial pressure works in their favor. The longer they wait, the more desperate you become, and the more likely you are to accept a low offer just to end the ordeal.
Tactics They Use
Common delay tactics include:
• Reshuffling Adjusters: Continually assigning new case managers who "need time to get up to speed."
• Unnecessary Paperwork: Asking for the same medical records three times.
• Lowball Offers: Sending an insulting initial offer (e.g., $5,000 for a $50,000 injury) to see if you bite.
Your attorney knows these tricks and fights them, but fighting takes time.
Funding as a Counter-Strategy
The only way to beat this strategy is to have patience. If the insurance company knows you have the financial resources to wait for trial, their leverage disappears.
Pre-settlement funding essentially buys you "patience." It covers your immediate bills so you can tell your attorney, "I'm fine. Don't settle until they pay the full value." This forces the insurer to stop stalling and start negotiating seriously.
