Personal injuries, car accidents, and other instances that require that the victim works with an insurance company to cover expenses are a huge financial stress for some victims if their insurance company tries to stall processing the claim or making a payment. The company may stall by simple methods such as taking their time processing paperwork or by more severe methods like finding previous injuries in the plaintiff’s medical records, previous accidents on their car’s history, or other reasons to dispute the claim. In the meantime, the victim has bills to pay. So, why would an insurance company want to stall payments? What’s the advantage of paying later? They may be trying to stall until it’s too late to file a suit against them. The statute of limitations may differ depending on where the plaintiff lives, but plaintiffs who take insurance companies to court over denied claims only have a certain amount of time after the incident that they can do so. If the insurance company makes it seem like they are paying, at least for a while, they may be able to stall long enough to take legal action off the table in the future. If the plaintiff can’t dispute the claims in court, they may see a smaller payment. They’re not paying. This one’s pretty simple—if the insurance company is not planning on paying at all, they may be stalling processing the claim in the hopes that the claimant will grow too frustrated or to just make it seem that the claim was very thoroughly processed before it was denied. The longer a situation drags on, the more the need for the insurance money grows. As these stalling tactics are being used, the bills will be stacking up, and the plaintiff could find their debt growing. Insurance companies know that after a while of stalling payments, plaintiffs might need the money so badly that they will be willing to settle for a lower payment then what they had expected. That is why it is a huge advantage for the claimant to be stable financially, not only so that they can follow through to see their insurance payment but also so that if the insurance company denies their claim and they decide to pursue legal action, they won’t find themselves in the same position—desperate for a settlement. It’s a common tactic in court as well to stall until the plaintiff is desperate enough for a low settlement. Many plaintiffs who take their insurance company to court use lawsuit loans to take this option off the table. Using presettlement funding can actually help them win their case, as the defense will not be able to use the need for money against them in court. Plaintiffs can also use lawsuit loans to help cover expenses during lawsuits that aren’t against the insurance company but by the individual or company that is at fault for the injury in the first place, as they may still be having trouble covering their expenses until their settlement is reached. About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit
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