What Can You Do if Insurers Delay Payments?

When you’re injured in a car accident in New Mexico, waiting for your insurance settlement can be draining. Delayed payments often leave victims struggling to pay medical bills, repair costs, and other expenses. If an insurer delays payment without valid justification, you should not accept it passively. Such delays may amount to a breach of the insurance contract, where insurers have to compensate the policyholder for the damages occasioned by the delay.

 Consulting a lawyer for car accident victims in New Mexico can ensure the insurer is held accountable. A reputable firm can even pursue interest on the delayed payment, ensuring you receive full compensation for your damages.  

Why Would Insurers Delay Paying Valid Claims?  

Delays in settling valid insurance claims are more common than you might think. Sadly, they often stem from calculated strategies by insurers to protect their bottom line. Here are some common reasons why insurers may postpone payments:  

Hoping to Settle for Less  

One of the most prevalent reasons for delays is that insurers hope to pressure victims into accepting lower settlements. Facing mounting bills and financial uncertainty, many victims feel compelled to accept a quick but inadequate payout. This tactic allows insurers to close claims at a lower cost than they might otherwise be obligated to pay.  

Creating Bureaucratic Obstacles  

Another common delay tactic involves excessive paperwork and administrative hurdles. Insurers may repeatedly request additional documents, claim the need for extended investigations, or create other unnecessary procedural barriers. These tactics are designed to wear down victims, leading them to abandon their claim or settle for less than they deserve.  

Disputing Liability  

Insurers often delay payments by disputing liability. They may argue that their policyholder was not at fault or that the victim’s injuries were not caused by the accident. Even when evidence overwhelmingly supports the victim’s claim, insurers can drag out the process to minimize their payout.  

Maximizing Profits  

At their core, insurance companies are for-profit businesses. Delaying claims allows them to retain funds longer, earning interest on the money they owe. This financial strategy benefits the company’s bottom line at the expense of the victims they are supposed to serve.  

What Can You Do If an Insurer Delays Payment?  

When an insurer unnecessarily delays payment, victims in New Mexico have legal recourse to protect their rights. Here’s how you can respond effectively:  

• Document everything. Keep a detailed record of all communication with your insurer. Document any requests they make and the timeline of your claim. This evidence will be invaluable if legal action becomes necessary.  

• Demand an explanation. If your claim is delayed, ask your insurer for a written explanation. They are required to provide a valid reason for any delays. Failure to do so could further support your case for a breach of contract.  

• Consult a lawyer for car accident victims in New Mexico. Payment delays often require legal intervention to resolve. An attorney for car accident victims can help file a complaint with the New Mexico Office of the Superintendent of Insurance. They can also pursue compensation for financial hardships and emotional distress caused by the delay.  
• File a bad faith insurance claim. If an insurer’s delay constitutes bad faith, you may be entitled to additional compensation. New Mexico law allows victims to file a bad-faith claim when insurers act unreasonably or unfairly. This can include penalties and interest on top of the damages sought.

Delays in insurance payments don’t just cause inconvenience—they can have lasting financial consequences for victims. From untreated medical conditions to unpaid legal fees, the impact of delayed compensation can be distressing. We highly advise victims to act swiftly and seek legal guidance to deal with insurers and secure the resources they need to move forward.  

Contact Fadduol, Cluff, Hardy & Conaway P.C. Today

At Fadduol, Cluff, Hardy & Conaway P.C., we understand how frustrating it is to deal with insurance delays after a car accident. Our team fights tirelessly to ensure that insurers honor their obligations to victims like you. If you’re facing delays, call us today at 800-433-2408 for a free consultation and learn how we can help you avoid further delays.