Insurance is supposed to protect you during life’s toughest moments. But when an insurance company delays your valid claim without cause, that protection can quickly feel out of reach. The good news is that you can sometimes sue insurers for delayed claims, especially when the delay is unreasonable or done in bad faith.
Keep reading to learn about what your options are when an insurance company delays your life, health, or accident claims.
Whether for health insurance claims or car accidents, you can sue an insurance company for delaying claims if the company doesn't follow Texas law. This includes if the insurer misses deadlines or fails to give a valid reason for needing more time. Under the law, insurers are required to respond to claims in a timely manner.
Delayed insurance claims are unfair, as they can lead to unpaid medical bills or even further damage to your overall well-being. In such cases, you have the right to take legal recourse with help from an experienced insurance attorney.
Your insurance company shouldn’t generally take more than 75 days in total to attend to your claim. Below is a breakdown of how much time your insurance company has to respond to your claim:
The insurance industry is highly regulated, and you have rights. Be sure to talk to a lawyer if you think you’re being mistreated.
Delays are not always by accident. Some insurance companies slow down the process on purpose to avoid paying you. If this happens, it helps to know what signs to look for. Watch out for these red flags in the claims process:
It’s important that you document every call, email, and deadline. If delays keep piling up with no clear reason, reach out to a personal injury lawyer to protect your rights.
Like we mentioned earlier, if your insurance claim gets denied, delayed, or underpaid without a valid reason, your insurance company may be acting in bad faith, and that’s against the law in Texas. Here’s how you can take legal action:
1. Gather Detailed Records — Write down dates, names, and what was said in all calls, emails, or letters from the insurance carrier.
2. Talk to an Experienced Attorney — An experienced insurance attorney, like those at Millin and Millin Attorneys, knows how to handle bad faith insurance practices and can guide you through every step.
3. Check if the Denial Was Fair — Look at your insurance policy to see if the company had a valid reason to deny or delay your claim.
4. Ask for a Written Explanation — Your insurer must explain why it delayed or denied your claim. If they don’t, that’s a red flag for bad faith.
5. Appeal the Decision – An appeal process allows you and your insurance carrier to have conversations around the delayed claim and look for better alternatives that can change the company’s decision.
6. File a Complaint with the State — You can report unfair or deceptive practices to the Texas Department of Insurance (TDI). They may investigate the insurance company.
7. Send a Demand Letter — This is a letter you send to your insurance company explaining in detail what you’re owed and why you believe you’re owed it. This gives them a chance to fix things before you go to court.
8. Start a Bad Faith Lawsuit — If the company still refuses to meet your demands, your lawyer can help you sue. You may win more than just your original claim and get compensation for the additional stress.
9. Explore Other Options — Your lawyer may suggest mediation or arbitration as alternatives to settling the case without going to court.
Spotting bad faith practices helps protect your rights and your wallet. These actions go beyond bad service and may meet the legal standard for proving bad faith in court under Texas law. Here are some common ways insurance companies act in bad faith:
Fighting an insurance company can feel tough, but you don’t have to go through it alone. Working with an experienced insurance attorney can help. Here’s how:
If your insurer delays or denies a valid claim without a reasonable excuse, your attorney can file a bad faith lawsuit. This shows the company failed its duty of fair dealing. Your lawyer can fight for medical bills, emotional distress, and even punitive damages if the conduct was severe.
Most bad faith cases don’t reach trial. Insurers often settle once they see strong legal backing. Your lawyer will send a demand letter, outline the unfair practices, and push for a fair deal. With a skilled attorney, the insurer knows it can’t take advantage of you.
A great attorney knows how to collect detailed records to prove your case. This may include your phone call logs showing delay tactics, and letters where the insurer denied payment without a reason. It also may include expert opinions that show you were owed a benefit, and records of the company using the same tricks on others.
Insurance law is complex, but your lawyer understands the rules. They’ll read your insurance policy and help you understand your rights. They’ll also deal with the insurance company’s legal team, so you don’t have to.
Filing a bad faith claim is tough when you're hurt or struggling financially. A lawyer handles everything from filing documents to managing evidence, and more, so you can focus on healing while they fight for your rights.
Insurance delays can put your health, finances, and peace of mind at risk. Knowing your rights is the first step to protecting yourself from unfair treatment. At Millin and Millin Attorneys, we fight for policyholders with wrongfully delayed and denied claims.
If your claim has been delayed without reason, our Texas insurance lawyers are here to review your case and help you pursue what’s fair. Contact us today for a free consultation. Insurance disputes can be incredibly complex, but we have the experience needed to handle them.
