A rear-end collision is disruptive enough, but personal injury firms can help when insurers add insult to injury through delayed payouts, claim disputes, pre-existing condition claims, demands for more documentation, and deadlines that ignore the maximum Medical Improvement (MMI) timeline.
According to data from the National Safety Council, 40% of all annual motor vehicle crashes are rear-end collisions. That’s over 3.7 million accidents alone.
With so many people trying to navigate the insurance system themselves, the insurance sector has developed long-standing delay tactics that often wear claimants down to maximize profits. These are for-profit companies, after all.
Personal injury firms can help you navigate the process, leading with expertise. They have the experience to negotiate with insurers, gather additional evidence, and even file lawsuits to help you receive a higher payout.
Why Do Insurers Delay Medical Bill Payments?
If insurance companies are supposed to provide compensation for injuries, why do they make you jump through hoops to receive a fair settlement?
The answer boils down to profits. Insurance companies are still for-profit organizations that want to preserve their bottom lines. Drawing out the claims process can lead to financial desperation, especially as medical bills pile up, forcing you to accept the first offer out of sheer necessity.
This waiting game could compel you to accept a lower offer before your Maximum Medical Improvement (MMI) period is over, as initial offers don’t take into account the full scope of your medical needs and recovery.
Can Insurers Dispute the Severity of Medical Claims?
Yes. While an insurance company may admit that their policyholder caused a rear-end collision, it may still challenge the severity of the victim’s injuries.
Suppose you were involved in a rear-end collision but received delayed whiplash treatment a few days after the accident. Soft-tissue injuries, like whiplash, don’t always show up on standard X-rays the first time around. Additional imaging tests and delayed inflammation add more days to the timeline, which the insurance company may point to in their dispute.
The insurance company may claim you have a pre-existing condition. A third-party medical reviewer hired by the insurer may come to this conclusion after evaluating your medical history. They could cite a past appointment for neck pain as evidence of a pre-existing condition or deem your medical treatment as excessive or unrelated to the accident.
Despite assembling a large file of documentation, an insurer may also demand more records or request that you resubmit them, which only delays the claims process.
Can Insurance Companies Dispute Liability?
Despite not being liable for a rear-end collision, an insurance adjuster can still open a drawn-out investigation into an “abrupt stop” you made or a broken brake light. Insurers may claim they’re waiting on finalized police reports, internal approvals, or additional witness statements. These tactics only slow down the process, putting more pressure on you to accept their initial offer.
What is Maximum Medical Improvement (MMI)?
MMI is the point at which an accident injury has recovered, as determined by a treating physician. This timeline is critical. From a legal standpoint, you cannot fully value a personal injury claim until the MMI has been met.
Initial settlement offers don’t take a physician’s MMI into account.
For instance, you may need surgery or ongoing physical therapy for a spinal injury. Settling a claim before meeting the MMI won’t yield the funds needed to cover crucial treatments. You can’t go back to an insurer to request more funds after accepting an initial offer.
Can Personal Injury Firms Help Speed Up the Process?
If you find yourself facing payment delays or claim denials, a personal injury lawyer can step in to help accelerate the process. Lawyers can spot bad-faith tactics on the part of insurers and help shift the legal balance of power back to you, the injured party. They also assist with administrative hurdles that can slow down the settlement process.
Suppose an insurer is delaying the process with repetitive requests for medical records. A personal injury lawyer can compile the following documents into a comprehensive file:
- Relevant medical records
- Itemized billing statements
- Expert opinions
- Accident evidence
These documents are then assembled into a demand package and sent to the insurance company.
Frequently Asked Questions
What Is a Letter of Protection (LOP)?
Personal injury lawyers understand that delayed payments from rear-end collision coverage can lead to rising out-of-pocket costs, collection notices, and credit damage as you wait.
To ease the burden, lawyers can issue a Letter of Protection (LOP) to your healthcare provider. An LOP is a legally binding agreement that promises providers will be paid directly from an incoming settlement. An LOP also halts distressing auto injury debt collection calls, protects your credit score, and spares you from draining your savings on out-of-pocket expenses.
How Do Personal Injury Lawyers Get Insurers to Respond?
If calls and emails to your insurer are going unanswered, a personal injury lawyer can step in to enforce state fair-claims practices laws. These laws require insurance adjusters to respond to claims and issue payments within set timelines. Otherwise, insurers may ignore unrepresented claimants who don’t have lawyers to invoke these laws.
Do Personal Injury Lawyers File Lawsuits?
If an insurance company still offers a low settlement after negotiations or acts in bad faith, a personal injury lawyer may file a lawsuit. This introduces court-ordered deadlines into the equation.
The act of filing alone can force insurers back into negotiation talks.
Do Lawyers Negotiate Medical Liens?
Once a settlement is reached, healthcare insurers may place health insurance subrogation liens on the settlement for reimbursement. But an experienced lawyer can negotiate these liens down using statutory laws, helping you retain a much larger portion of your settlement.
Streamline Your Settlement
Personal injury firms can help you get back on your feet by mitigating delays from unresponsive insurers, claim disputes, and low initial offers. Learn how lawyers compile demand packages, issue LOPs, invoke state laws that force communication, file lawsuits if necessary, and negotiate medical bill lien resolution.
Book a free consultation to discuss your options. Our team at Benjamin Durham Law Firm has over 20 years of experience and has been ranked in the Top 100 trial lawyers by the National Trial Lawyers Association.
Contact us today to discuss your case.
