You’re not alone if you’re in the middle of settlement negotiations with an insurance company, and progress has slowed to a crawl. Many personal injury victims find themselves frustrated with delayed settlements, wondering why their claim isn’t moving forward.
Insurance companies often use stall tactics to pressure claimants into accepting lowball offers or giving up entirely. However, there are steps you can take to get negotiations back on track and secure the maximum compensation you deserve.
Why Do Personal Injury Settlement Negotiations Stall?
Settlement negotiations often stall for reasons that go beyond simple paperwork delays. Understanding the most common causes—and how they play out in real-life cases—can help you avoid frustration and make informed decisions.
Insurance Company Delay Tactics
Insurance companies are not just slow—they are strategic. As profit-driven businesses, their goal is to minimize payouts and pressure injured claimants into accepting less than they deserve. Here’s how they do it:
- Delayed Response Times: You submit documentation, only to wait weeks with no reply. Adjusters may claim they’re “waiting on internal approval” or “reviewing the case further.” This is often a pressure tactic to wear you down.
- Dispute the Extent of Your Injuries: The insurer may argue that your injuries aren’t as severe as claimed or suggest pre-existing conditions are to blame. This is particularly common in soft-tissue injuries (like whiplash) where medical imaging isn’t always conclusive.
- Refusing a Meaningful Counteroffer: They might acknowledge your claim but respond with a lowball offer that barely covers your ER visit—hoping you’ll settle out of desperation or confusion.
Ongoing Medical Treatment
When you’re still healing, your medical journey isn’t over, and neither is your case.
You can’t calculate the actual value of your injury claim until you’ve reached Maximum Medical Improvement (MMI). This is the point where your condition has stabilized, and future care needs are more precise. Settling you injury claim too early risks:
- Missing compensation for future surgeries or therapies
- Overlooking long-term disabilities or complications
- Accepting less than what your ongoing pain and suffering is truly worth
Let’s say you are an injured construction worker in Queens and you accept a $40,000 settlement two months after a shoulder injury, only to later need rotator cuff surgery and miss additional workdays. Without legal counsel, you would likely miss out on compensation for these additional medical expenses.
Disputes Over Liability
If the insurance company doesn’t believe their policyholder is entirely, or even partially, at fault, they’ll stall until your attorney proves otherwise.
Tactics Insurers Use:
- Blaming You: If you were rear-ended but didn’t have your brake lights working, they might argue shared fault.
- Discrediting Evidence: They may claim witness statements are unreliable or question the validity of a police report.
For example, after a bicycle accident, the insurance company might delay your claim by insisting that you “darted into traffic,” even without credible evidence. This forces your case into a holding pattern. At the same time, they demand additional proof, knowing that gathering surveillance footage or eyewitness testimony takes time, time they’re counting on to pressure you into accepting less.
NY Court System Delays
Civil courts are notoriously backlogged in heavily congested jurisdictions like New York City. Even once the lawsuit begins, the process is slow, often bogged down by conferences, depositions, discovery disputes, and motion practice. Insurers know this and use the delay to their advantage, dragging their feet to wear you down. They’re betting that the prospect of a long, expensive court battle will make you settle for less, even if going to trial might be in your best interest.
In reality, insurers often want to avoid court just as much, if not more, than you do.
How to Restart Stalled Settlement Negotiations in an Injury Claim
If your case feels stuck, here are key actions you and your attorney can take to move negotiations forward and strengthen your claim:
- Keep Your Statements Consistent: Inconsistencies between your medical records, police report, or prior statements give insurers an excuse to delay. Make sure your account of the accident and symptoms is clear, consistent, and supported by documentation.
- Submit All Documentation Promptly: Insurers often pause negotiations, citing “missing information.” Providing your attorney with complete medical records, wage loss proof, receipts, and photos ensures they can respond immediately and keep the case progressing.
- Hire an Experienced Personal Injury Attorney: Insurance companies track which attorneys push for full value and which ones settle fast. A skilled lawyer who understands delay tactics can escalate pressure and demonstrate you’re serious about going to trial if needed. Learn how to prep for a free consult with a personal injury attorney.
- Reject Lowball Offers Strategically: Initial offers are often unreasonably low. Stay patient and allow your attorney to counter with evidence-backed demands that reflect your actual damages. This is a normal part of the settlement negotiation process.
- Show You’re Ready to Go to Court: Even if you’d rather avoid trial, being prepared to litigate adds leverage. Once a lawsuit is filed and court deadlines loom, insurers are more likely to settle to avoid jury risk and rising legal expenses.
- Maintain Active Communication: Stay engaged with your attorney and provide updates about medical treatment, expenses, or changes in your condition. Regular communication helps your legal team act quickly and shows the insurer your claim isn’t going away.
Remember that insurance companies rely on delays to gain the upper hand, so don’t give them that advantage. With the right strategy and representation, you can take back control of the negotiation timeline.
When is It Time to File a Personal Injury Lawsuit?
If your insurance negotiations remain deadlocked, you may need to take legal action. Filing a personal injury lawsuit could be necessary if:
- The insurance company refuses to negotiate in good faith
- You are offered a settlement far below your damages
- The insurance policy limits do not fully cover your losses
- The at-fault party denies liability and refuses to settle
If your case goes to trial, a judge or jury will decide how much compensation you receive. However, many insurance companies prefer to settle before trial, knowing that a court ruling could result in a larger payout.
FAQs: Personal Injury Negotiation Delays
How Long Should Settlement Negotiations Take?
Settlement negotiations typically take anywhere from 3 to 9 months, depending on the complexity of your case, the extent of your injuries, and whether liability is disputed. Straightforward claims may resolve faster, but cases involving ongoing treatment, contested fault, or significant damages can take longer especially if the insurer intentionally drags out the process.
What If The Insurance Company Never Responds?
If the insurance company ignores your claim or fails to respond within a reasonable timeframe, it could be a sign of bad faith. This tactic is sometimes used to frustrate claimants into dropping the case or accepting less. Your attorney can escalate the matter by sending a formal demand, filing a lawsuit, or reporting the insurer to the state’s Department of Financial Services for regulatory violations.
Can I Switch Attorneys If I Feel Mine Isn’t Being Aggressive Enough?
Yes—you have the right to change lawyers if you believe your current attorney isn’t protecting your best interests. A lack of communication, missed deadlines, or failure to push back against lowball offers are valid reasons to seek more assertive representation. In most cases, your new attorney can coordinate the transition and handle any fee arrangements with the prior firm.
Do I Have To Wait Until My Medical Treatment Is Finished?
Not necessarily, but in many cases it’s strategically better to wait until you’ve reached Maximum Medical Improvement (MMI). Settling too early—before the full scope of your injuries and future care needs are known—can result in undervaluing your claim. Your attorney can advise when the timing is right to ensure all damages are accounted for.
Will Filing A Lawsuit Speed Up The Process?
Filing a lawsuit won’t result in an immediate settlement, but it often forces the insurer to take the case more seriously. Once court dates and deadlines are on the calendar, the pressure to negotiate increases. Many personal injury cases settle shortly after litigation begins, particularly when the defense wants to avoid discovery costs or the risk of trial.
For the Settlement & Results You Deserve, Call HKD
Dealing with a slow or stalled personal injury settlement? You don’t have to handle it alone. At Hecht, Kleeger & Damashek, P.C., our experienced New York personal injury lawyers know how to fight back against insurance companies and get you the settlement you deserve. Your initial consultation is free, and we work on a contingency basis—meaning there’s no fee unless we win.
Don’t let insurance companies delay or deny your justice. Call (212) 490-5700 or schedule your free consultation online.