After a devastating car accident in Florida, Sarah, a single mother, thought her insurance company would provide support during her recovery. Yet, as weeks passed, she realized they were stalling, using legal jargon and unnecessary requests to delay her claim. Frustrated and running out of options, Sarah turned to Herman & Wells. If you’re having a similar experience, let Herman and Wells guide you through the claims process. Schedule a free evaluation at (727) 821-3195.
When Sarah first filed her car accident claim, she had no idea how the “no-fault” insurance system worked. The Florida system can be confusing for anyone unfamiliar with it. It’s essential to understand the key legal principles to avoid falling into a trap set by insurance companies looking to delay or deny claims.
Sarah wasn’t aware that in Florida, her insurance company was supposed to cover certain damages, regardless of who caused the accident. However, they used the state’s complex laws to delay her payout. By knowing your rights under Florida law, you can avoid these situations and take proactive steps to prevent delays.
What many Florida drivers don’t realize is that state law imposes specific timelines on insurance companies. Under Florida Statutes § 627.70131, an insurer is required to acknowledge receipt of a claim within 14 calendar days. From there, the insurer must either pay or deny the claim within 90 days of receiving proof of loss. If the insurer fails to pay or deny the claim within 60 days after receiving notice, it may be required to pay interest on the delayed amount, and continued inaction beyond 90 days can rise to the level of bad faith under Florida law.
These are not suggested guidelines. They are legal obligations. When insurance companies miss these deadlines without a valid reason, they may violate the Unfair Claims Settlement Practices Act, which opens the door to a formal bad-faith claim.
Knowing what to do if an insurance company is stalling is critical to protecting your claim and your legal rights. Inaction works against you. The longer you wait without applying pressure, the more time the insurer has to build its case for a delay or denial. Here are the immediate steps you should take:
Create a detailed, chronological log of every interaction with the insurance company. Record dates, times, the name of every representative you spoke with, and a summary of what was discussed. Save all emails, letters, faxes, and any written correspondence. This paper trail becomes essential evidence if the case escalates legally.
Stop relying solely on phone calls, which are easily disputed or “lost.” Send a formal written demand, via certified mail with return receipt, requesting a written explanation for the delay and a specific timeline for resolution. When you communicate in writing, you create a record the insurer cannot deny.
If your assigned adjuster is unresponsive or evasive, escalate immediately. Ask to speak with their direct supervisor or a claims manager. Sometimes the act of escalating alone is enough to prompt faster action, as it signals that you are not going to accept delays passively.
Insurance adjusters work for the company, not for you. Their job includes finding reasons to minimize payouts. Counter this by obtaining your own independent repair estimates, medical evaluations, or an independent adjuster report. Having your own documentation strengthens your position and makes it harder for the insurer to lowball your claim.
Pull out your policy and read it carefully. Confirm your coverage, your policy limits, and any language specifying the insurer’s obligations around response times. Understanding what the company contractually owes you gives you a clear benchmark against which to measure their conduct.
Sarah found herself being asked for unnecessary documents again and again, with new requests appearing just as she thought her claim was about to be processed. She also experienced long periods without updates, and excuses about needing more time. These kinds of stalling tactics are designed to wear down claimants. Understanding these behaviors can help you anticipate the insurance company’s moves and prepare accordingly.
Common bad-faith stalling signs to watch for include:
These patterns are not coincidences. Many insurers use delay as a deliberate strategy, banking on the fact that claimants will eventually accept a low offer just to resolve the situation. Recognizing these tactics early is your best defense.
When Sarah realized her claim was at a standstill, she started documenting every interaction with the insurance company, keeping track of calls and emails. If your claim is stalled, begin by documenting everything. This will be crucial if you need to escalate the issue later.
Sarah kept detailed records of each time she reached out to the insurer. When the company claimed they never received her paperwork, she had proof that she had already sent it. Keeping thorough records of all communications, including call logs and emails, can make all the difference if your case moves forward legally.
Sarah wasn’t aware at first, but Florida has bad-faith laws that protect accident victims when insurers unjustifiably delay or deny claims. By learning about and leveraging these laws, you can fight back against an insurance company’s unfair practices.
Under Florida Statutes § 624.155, an insurer commits bad faith when it fails to attempt in good faith to settle a claim it could and should have settled. This statute gives policyholders a powerful legal tool, but using it requires following the right process. Before filing a bad faith lawsuit, Florida law requires you to submit a written Civil Remedy Notice (CRN) to both the insurance company and the Florida Department of Financial Services. The insurer then has 60 days to cure the violation by paying your claim or addressing the alleged bad faith. If they fail to do so, you and your attorney can proceed with a civil lawsuit, and in some cases, you may be entitled to damages beyond the original policy limits.
If initial efforts to resolve the delay don’t produce results, it’s time to escalate. Here are the formal options available to Florida policyholders:
The Florida Department of Financial Services (DFS) oversees insurance companies operating in the state. Filing a formal complaint puts the insurer on notice that a regulatory body is watching and can prompt faster action to avoid penalties or investigations. You can file online through the DFS website.
A licensed public adjuster is an independent professional who evaluates your damage claim on your behalf and negotiates directly with the insurance company. Unlike the insurer’s adjuster, a public adjuster works for you. They can identify whether your claim is being undervalued and advocate for a fairer settlement.
An attorney familiar with Florida’s bad faith insurance laws can send a formal demand letter, file a Civil Remedy Notice, and apply real legal pressure to resolve your injury claim. Insurance companies respond very differently when they know they are facing a legal challenge from counsel. If the bad faith continues, your attorney can pursue litigation, potentially recovering not just the original claim value but additional damages as well.
Feeling stuck and unsure of what to do next, Sarah reached out to Herman & Wells for legal advice. This was a game-changer. If your claim has stalled or been denied, it’s time to consult a personal injury lawyer. They can help interpret your insurance policy, guide you through Florida’s legal system, and pressure the insurer to settle.
With Herman & Wells on her side, Sarah’s legal team used Florida’s bad-faith insurance laws to compel the insurance company to act. A good lawyer can employ the right strategies to apply legal pressure, move the claim forward, and ensure you’re compensated fairly.
Sarah didn’t initially know her rights under Florida law, which is why she almost accepted the insurance company’s delays. After consulting Herman & Wells, she learned about the legal protections available to her. Understanding your rights is the first step in protecting yourself after an accident.
Through her legal team, Sarah learned that several key legal precedents in Florida protected her from insurance company stalling tactics. These cases establish what insurers can and cannot do, making it easier to hold them accountable.
One foundational principle established by Florida case law is that insurance companies must act with the same urgency as if they were in the policyholder’s shoes. When an insurer’s delays contribute to a judgment exceeding policy limits, Florida courts have held that the insurer can be held responsible for those excess damages. This precedent makes delay a costly gamble for insurers and a powerful argument for policyholders and their attorneys.
Sarah’s story ended positively, with her receiving the compensation she deserved thanks to Herman & Wells. If you suspect your insurance company is stalling or acting in bad faith, contact us today. Our experienced team is dedicated to empowering clients and ensuring that your rights are protected.
Ready to take the next step? Call (727) 821-3195 for a free evaluation and get the help you need to move your claim forward.