Common Tactics Insurance Companies Use to Delay or Deny Claims

When disaster strikes, whether it’s a car accident, property damage, or a health crisis, you rely on your insurance policy to help you recover. After all, that’s what you’ve been paying premiums for, right? Unfortunately, some insurance companies don’t hold up their end of the bargain. Instead, they use delay and denial tactics to avoid paying valid claims.

As an attorney experienced in insurance bad faith litigation, I’ve seen how these tactics can devastate policyholders who are already facing difficult circumstances. In this article, I’ll walk you through the most common tactics insurers use to delay or deny claims — and what you can do to protect yourself.

Why Do Insurance Companies Delay or Deny Claims?

Insurance companies are businesses. Their profits increase when they collect premiums and decrease when they pay claims. While many adjusters act in good faith, others are trained to protect the company’s bottom line by minimizing or avoiding payouts.

Insurers have a legal duty to handle claims fairly and promptly — this is known as the duty of good faith and fair dealing. When they fail to meet that obligation, it may constitute insurance bad faith, which can give rise to a lawsuit and additional damages.

Understanding the red flags can help you hold your insurer accountable.

Top Tactics Insurance Companies Use to Delay or Deny Claims

These are the most common delay-and-deny strategies used by insurance carriers:

1. Repeated Requests for Unnecessary Documentation

This is one of the most common and frustrating stalling tactics.

What it looks like:

• The adjuster asks for the same documents multiple times.
• You’re asked to submit documents that are unrelated to your claim.
• Every time you respond, a new “required” form is introduced.

Why they do it:
To buy time, frustrate you, or make you miss deadlines. Some insurers count on policyholders giving up.

What you can do:

• Keep organized copies of everything you’ve submitted.
• Respond in writing and request confirmation of receipt.
• Document how many times you’ve submitted each item.

Insurance policies are complex and filled with legal jargon. Some insurers take advantage of this by misinterpreting exclusions or provisions in a way that favors them.

What it looks like:

• You’re told that your claim is denied because the event is “not covered,” even though it clearly is.
• The adjuster won’t explain or provide the specific policy language being cited.
• Coverage is denied based on vague or obscure terms.

Why they do it:
To discourage you from pushing back, hoping you won’t challenge their interpretation.

What you can do:

• Request a full copy of your policy.
• Ask for a written explanation with exact policy language cited.
• Consult an attorney if their interpretation seems questionable.

3. Unjustified or Prolonged Investigations

Insurance companies are allowed to investigate claims, but those investigations must be reasonable and timely.

What it looks like:

• Your claim is “under investigation” for weeks or months with no progress.
• You receive vague status updates or none at all.
• Multiple adjusters are assigned to your case with no clear direction.

Why they do it:
To delay payment and wear you down. A prolonged investigation can also be used to search for excuses to deny your claim.

What you can do:

• Keep detailed notes of every communication.
• Request a timeline and regular updates.
• If the delay becomes excessive, consider filing a complaint or contacting an attorney.

4. Offering a Lowball Settlement

Sometimes insurers will delay your claim for weeks or months, only to return with a settlement offer far below the value of your loss.

What it looks like:

• The offer doesn’t cover your full medical expenses, repair costs, or lost income.
• The adjuster pressures you to accept quickly.
• You’re told it’s a “take it or leave it” deal.

Why they do it:
To save money by settling for less than the claim is worth. They count on your financial stress or frustration to make you accept.

What you can do:

• Don’t accept the first offer without reviewing your full losses.
• Get independent appraisals or repair estimates.
• Speak with an attorney before signing anything.

5. Failing to Communicate Timely or Clearly

Another subtle tactic is to simply go dark.

What it looks like:

• Unreturned phone calls or emails.
• Missed deadlines with no explanation.
• Adjusters who “need to check with a supervisor” but never follow up.

Why they do it:
To delay the claim process, increase your frustration, or buy time for internal review.

What you can do:

• Insist on written communication.
• Keep a log of every contact attempt.
• Escalate your complaint to a supervisor or file a Department of Insurance complaint if needed.

6. Blaming the Policyholder for the Loss

Insurance companies may try to shift responsibility to you to deny a claim.

What it looks like:

• They allege that your actions (or inactions) contributed to the loss.
• You’re accused of misrepresentation or fraud.
• Claims are denied for “wear and tear” or “pre-existing conditions.”

Why they do it:
To exploit exclusions or create a basis to deny your claim entirely.

What you can do:

• Document everything that occurred at the time of loss.
• Avoid giving recorded statements without legal advice.
• Challenge vague or broad accusations with evidence.

7. Using Biased Experts or Independent Medical Exams (IMEs)

In personal injury or disability claims, insurers may send you to an Independent Medical Exam — but the doctors often work closely with the insurer.

What it looks like:

• The IME doctor spends little time with you.
• Their report contradicts your treating physician’s.
• The IME is used to justify denying your claim.

Why they do it:
To get a favorable medical opinion that supports denial or reduced payment.

What you can do:

• Request a copy of the IME report.
• Have your treating doctor respond in writing.
• Bring someone with you to the appointment as a witness.

How to Recognize Insurance Bad Faith Early

Here are some red flags that may indicate your insurer is acting in bad faith:

• Unreasonable delays in communication or payment
• Changing reasons for denial
• Misrepresenting facts or policy terms
• Failure to investigate the claim properly
• Low offers without justification
• Intimidating or manipulative behavior

If you’re noticing any of these signs, it’s time to take action.

Steps to Take If Your Claim Is Delayed or Denied

Don’t let delay tactics or bad faith behavior catch you off guard. Here’s what you can do:

1. Document everything — Keep a timeline, copies of emails, phone logs, and all claim submissions.
2. Request explanations in writing — Ask for written reasons for delays, denials, or settlement offers.
3. Know your policy — Read your policy’s coverage, exclusions, and obligations.
4. Escalate the issue — Contact a supervisor, file a complaint with your state’s Department of Insurance.
5. Get legal help — An experienced attorney can evaluate your claim, identify bad faith conduct, and help you pursue full compensation.

Why Hiring an Attorney Makes a Difference

Insurance companies take notice when an attorney gets involved. Here’s how a lawyer can help:

• Interpret your policy accurately
• Negotiate with the insurer from a position of strength
• Gather evidence to prove bad faith
• File a lawsuit, if necessary, for damages beyond your original claim
• Hold the insurance company accountable to the law

In many bad faith cases, policyholders may be entitled to compensation beyond the original claim amount — including attorney’s fees, emotional distress damages, and even punitive damages.

Insurance companies have a duty to treat you fairly — but not all of them do. If you’re facing delays, lowball offers, or unjustified denials, don’t assume it’s just how the process works. These may be intentional tactics to avoid paying what you’re owed.

The good news? You don’t have to go through this alone. With the right support, you can hold your insurer accountable and get the compensation you deserve.