What to Do If an Insurance Company Is Stalling in the USA

Dealing with an insurance company after filing a claim can already be stressful. But when the insurance company begins stalling — delaying responses, dragging out investigations, or offering vague excuses — it can make a difficult situation even worse. If you’re experiencing this in the USA, you’re not alone, and you have rights.

Let’s break down what you should do if an insurance company is stalling your claim:

Understand Why They Might Stall

First, it's important to realize why an insurance company might delay a claim:

• Pressure for you to settle for less: Dragging things out can make claimants desperate enough to accept a lowball offer.
• Internal investigations: Some delays may be genuine, involving accident investigations or medical reviews.
• Tactics to avoid payout: Unfortunately, some insurers purposely stall to frustrate customers into dropping claims altogether.

Knowing the reason helps you decide how to respond.

Stay Organized and Keep Records

Document everything. Keep copies of:

• All emails
• Letters
• Phone call logs (date, time, person you spoke with, and what was discussed)

Having a well-organized file will protect you and can serve as evidence if you need to escalate the matter later.

Remain Persistent and Follow Up

Don’t be passive.  

• - Call regularly (weekly or bi-weekly).
• - Email follow-ups after every call or discussion to document your communication.
• - Politely but firmly request updates and timelines in writing.

Persistence signals to the insurer that you are serious and not going away quietly.

Demand Written Explanations for Delays

If your claim is being delayed without clear reasons, ask for an explanation in writing. In many states, insurance companies are legally obligated to provide a detailed response when requested. A written document holds them accountable.

Know Your Rights Under Bad Faith Laws

In the USA, insurance companies must handle claims fairly and promptly under "good faith" laws. If an insurer unjustly delays your claim, it may constitute bad faith, which can open the door for legal action and additional damages.

Each state has its own insurance department and consumer protection laws. Learn about your state’s specific rules — it’s your best defense.

File a Complaint with Your State Insurance Department

If you believe the insurance company is stalling in bad faith:

• File a formal complaint with your state’s department of insurance.
• Most departments allow online complaints and have dedicated hotlines.

This can trigger a government investigation, pressuring the company to act fast.

Hire an Attorney If Needed

If your insurance claim is large (like for serious car accidents, health issues, or property damage) and the insurer still refuses to cooperate, it might be time to hire a bad faith insurance attorney.

An experienced lawyer can:

• Analyze your claim
• Handle negotiations
• File a lawsuit if necessary

• Push for compensation beyond the original claim, including punitive damages

Important: Most insurance attorneys work on a contingency basis — meaning you don’t pay unless they win for you.

Be Prepared for Negotiation or Settlement

Once you escalate your complaint, companies often respond quickly to avoid lawsuits or government scrutiny.  

Be ready:

• Know your claim’s value
• Be willing to negotiate
• Consult your lawyer before accepting any settlement

Never accept the first offer without careful review.

Final Thoughts

Dealing with an insurance company that’s stalling can be frustrating, exhausting, and unfair. But remember — you have power. Staying organized, demanding transparency, knowing your legal rights, and escalating when necessary can force the company to process your claim fairly.

You paid for your policy. You deserve timely and honest service. Don’t let delay tactics stop you from getting what you're owed.