Delay, Deny, Defend: How Insurance Companies Act in Bad Faith After Car Accidents

The accident wasn't your fault. The police report is clear. You've provided every document they asked for. Yet months later, the insurance company still hasn't paid your claim—or they've offered a fraction of what your injuries are worth. You're not imagining things. What you're experiencing has a name: delay, deny, defend. It's a deliberate strategy insurance companies use to wear down claimants, minimize payouts, and maximize profits. Understanding this playbook—and knowing how Oklahoma law protects you from it—is essential to getting fair compensation.

The Business Model Behind the Tactics

Insurance companies are publicly traded corporations with fiduciary duties to shareholders. Every dollar paid on a claim is a dollar not available for profits. This creates an inherent tension between the company's duty to policyholders and claimants and its drive for profitability.

In the 1990s, major insurers began adopting claims handling programs specifically designed to reduce payouts. Internal documents from these programs—some revealed in litigation—showed systematic training for adjusters to question every claim, delay payments, lowball offers, and make the claims process so frustrating that injured people would accept less than they deserved or give up entirely.

The strategy has three phases, each designed to wear you down.

Phase One: Delay

The first tactic is delay—dragging out the claims process until financial pressure forces you to accept a lowball offer or abandon your claim entirely.

Requesting redundant documentation is common. You've already provided your medical records, but now they want them again—in a different format, from a different source, with additional authorizations. Each request buys time.

Claiming they need more investigation when the liability is clear. The other driver ran a red light and admitted fault, but the adjuster says they're still "investigating." Weeks pass. Then months.

Failing to return calls or respond to correspondence is a passive but effective delay. You leave messages; they're not returned. You send letters; no response. Without communication, your claim sits.

Reassigning your claim repeatedly means starting over with each new adjuster. You've explained your injuries, your treatment, your damages—but now there's a new person on your file who needs to "get up to speed."

Waiting until deadlines to respond to every communication. If they have 30 days to respond to a demand, they take 29 and a half.

These delays aren't accidental. For the insurer, time is money—literally. While your claim sits, they earn investment income on the reserves set aside to pay it. And the longer you wait, the more desperate you become. Maybe you've missed work. Maybe medical bills are going to collections. Maybe you just want this nightmare to end. That desperation is precisely what they're counting on.

When Delay Becomes Bad Faith

Not every delay is bad faith. Insurers are entitled to reasonably investigate claims. But unreasonable delay—delay without legitimate justification, delay designed to pressure rather than investigate—crosses the line.

Under Oklahoma law, insurers must process claims in good faith, which includes acting with reasonable promptness. When they delay without basis, fail to communicate, or use delay as a pressure tactic, they may be liable for bad faith.

Signs that delay has become bad faith:

• Repeated requests for the same information you've already provided
• Failure to explain the reason for delays when asked
• Delays that persist after you've provided everything requested
• Adjusters who are consistently unreachable
• Taking maximum time on every step without justification

Phase Two: Deny

When delay doesn't work—when you persist, when you hire an attorney, when you refuse to go away—the next phase is denial.

Denying valid claims outright happens more often than people realize. The insurer sends a letter saying your claim is denied, citing policy language or alleged exclusions that don't actually apply.

Disputing liability despite clear evidence is a form of denial through reclassification. They don't outright deny your claim exists; they deny that their insured was at fault—even when the police report, witness statements, and physical evidence all say otherwise.

Misrepresenting policy terms involves telling you that something isn't covered when it actually is, or that limits are lower than they actually are, or that exclusions apply when they don't.

Denying the extent of your injuries concedes that the accident happened but disputes that your injuries are as serious as claimed—or disputes that the accident caused them. "You had a pre-existing condition." "Your treatment was excessive." "Your symptoms are subjective."

Offering unreasonably low settlements is denial by another name. By offering 10% of what your claim is worth, they're effectively denying 90% of your damages—just without formally using the word "denied."

When Denial Becomes Bad Faith

Insurers can legitimately deny claims they believe aren't covered or aren't supported by evidence. But denial becomes bad faith when:

• The denial lacks any reasonable basis
• The insurer failed to adequately investigate before denying
• The denial misrepresents policy language
• The insurer ignores evidence supporting the claim
• The denial is designed to pressure settlement rather than reflect actual policy coverage

The key question is whether the insurer had a reasonable basis for its position and acted fairly in reaching it. An insurer that denies first and investigates later, or that twists policy language to avoid coverage, has crossed into bad faith.

Phase Three: Defend

When you refuse to accept a lowball offer—when you file a lawsuit to get fair compensation—the insurer shifts to defense mode. Now they're not trying to resolve your claim; they're trying to win a war of attrition.

Aggressive litigation tactics make the process as painful as possible. They file every motion, take every deposition, demand every document. The message is clear: pursuing your claim will be exhausting and expensive.

Attacking your credibility becomes the focus. They'll scour your social media for anything they can use. They'll dig into your medical history for any prior complaint. They'll characterize every inconsistency—real or manufactured—as evidence of fraud.

Hiring experts to dispute your injuries is standard. They'll find doctors willing to say you weren't really hurt, or that your treatment was unnecessary, or that your injuries preexisted the accident.

Dragging litigation out for years maximizes pressure. The longer the case takes, the more attorney fees accumulate, the more you wonder if it's worth it. Many plaintiffs settle for less than they deserve simply because they're exhausted.

This phase is where the original strategy comes full circle. The insurer calculated from the beginning that most people would give up before reaching this point. Those who persist face a well-funded adversary willing to spend more fighting the claim than paying it—because paying would set a precedent, and fighting sends a message to the next claimant.

Oklahoma's Bad Faith Laws

Oklahoma has some of the strongest bad faith protections in the country. When an insurer acts in bad faith, the consequences go beyond simply paying what they should have paid in the first place.

First-party bad faith applies when your own insurer mistreats you—for example, your uninsured motorist carrier refusing to pay valid claims. Oklahoma recognizes an implied duty of good faith and fair dealing in every insurance contract. Breach of that duty is both a contract claim and a tort claim.

Third-party bad faith is more limited. Generally, you can't sue the other driver's insurance company directly for bad faith in Oklahoma—they don't owe you the same duty they owe their own insured. However, there are paths to hold them accountable, including policy limits demands that create exposure for the insurer's own policyholder.

What You Can Recover

A successful bad faith claim can include:

Policy benefits: The money they should have paid in the first place.

Consequential damages: Harm caused by the wrongful denial—medical bills that went to collections, damage to your credit, lost opportunities because you couldn't get the care you needed.

Emotional distress damages: The anxiety, frustration, depression, and mental anguish caused by their conduct.

Punitive damages: In cases of egregious misconduct, damages designed to punish the insurer and deter future bad behavior. Oklahoma allows punitive damages for "reckless disregard" for the policyholder's rights.

Attorney fees: In some circumstances, you can recover the fees incurred fighting the insurer's bad faith.

This remedial scheme is designed to ensure that bad faith isn't just unprofitable—it's costly. An insurer that saves $50,000 by wrongfully denying a claim might face $500,000 in punitive damages for doing so.

Recognizing the Tactics in Your Claim

Here's what delay, deny, defend looks like in practice:

The endless document requests: You've sent your medical records three times, but they claim they never received them—or they need "updated" records, or they need records from providers you've already told them you didn't see.

The silent treatment: Your calls aren't returned. Your letters aren't acknowledged. Weeks go by without any communication.

The unreasonable investigation: They're still "investigating" a rear-end collision where their driver was ticketed. What's to investigate?

The lowball offer: Your medical bills alone are $30,000, and they offer $8,000 to settle the entire claim—take it or leave it.

The recorded statement trap: They want you to give a recorded statement, then use your words against you. For more on this tactic, see our article on recorded statement traps.

The IME gambit: They send you to their "independent" medical examiner—a doctor who regularly testifies for insurers and whose income depends on reaching conclusions favorable to them. Learn more about protecting yourself in our IME guide.

The pre-existing condition defense: You had back pain five years ago, so clearly this accident didn't cause your current herniated disc—never mind that you were asymptomatic for years before the crash.

Fighting Back

Understanding the playbook is the first step. Here's how to counter it.

Document Everything

Keep a file of every communication with the insurance company. Log every phone call: date, time, who you spoke with, what was said. Save every letter, email, and text. When you provide documents, send them by email or certified mail so you have proof of delivery.

This documentation serves two purposes: it keeps your claim moving (you can prove you've done what they asked), and it builds evidence if you need to pursue bad faith (you can show a pattern of delay or denial).

Respond Promptly and Completely

Don't give them ammunition. When they request documents, provide them quickly and completely. When they ask questions, answer them. Remove any legitimate basis for delay.

This doesn't mean you should give recorded statements without consulting an attorney or produce documents you're not required to produce. But for legitimate requests, prompt response eliminates their excuse for delay.

Set Deadlines and Follow Up

When you submit something, include a deadline for response. "Please confirm receipt and provide your response by [date]." When deadlines pass, follow up in writing. Create a paper trail showing that you've been proactive while they've been unresponsive.

Know When to Escalate

If your adjuster isn't responding, escalate to a supervisor. If the company isn't responding, consider filing a complaint with the Oklahoma Insurance Department. Their intervention sometimes prompts action.

Get Legal Help

Insurance companies take claims more seriously when an attorney is involved. They know that unrepresented claimants often accept lowball offers; they know that represented claimants know their rights.

An attorney can send a demand letter with teeth—one that puts the insurer on notice of potential bad faith liability. An attorney can file suit if negotiation fails. And an attorney can pursue the bad faith claim itself, seeking damages beyond just your underlying injuries.

Frequently Asked Questions

How long can an insurance company take to settle a claim in Oklahoma?

There's no fixed timeline, but Oklahoma law requires insurers to act with reasonable promptness. The Oklahoma Unfair Claims Settlement Practices Act lists specific violations, including failing to acknowledge communications promptly, failing to adopt reasonable standards for investigation, and not attempting in good faith to effectuate prompt settlement when liability is clear.

Can I sue the other driver's insurance company for bad faith?

Generally, no—third-party bad faith claims have limited availability in Oklahoma. The other driver's insurer owes duties to their insured, not to you. However, their bad faith toward their own insured (such as refusing to settle within policy limits when they should) can create exposure that affects your ultimate recovery.

What's the difference between a lowball offer and bad faith?

A lowball offer alone isn't necessarily bad faith—insurers are allowed to negotiate. But an offer that is so unreasonably low that no honest assessment of the claim could support it, combined with refusal to negotiate in good faith, can constitute bad faith. Context matters: if the offer ignores clear medical evidence, disregards uncontested liability, or is obviously designed to pressure rather than resolve, it may cross the line.

Do I need a lawyer to file a bad faith claim?

Technically, no—but practically, yes. Bad faith claims involve complex legal standards, and insurers will vigorously defend them. These cases often require expert testimony about industry standards. Without an attorney, you're unlikely to succeed.

What evidence do I need for a bad faith claim?

You need evidence of what the insurer did (or failed to do) and evidence that their conduct was unreasonable. This typically includes: your complete claim file, all correspondence, documented delays, denial letters and their stated rationales, evidence undermining those rationales, and expert testimony about industry practices. Your documentation of every communication becomes crucial.

Can I get punitive damages against an insurance company?

Yes, if their conduct was sufficiently egregious. Oklahoma allows punitive damages for reckless disregard of the policyholder's rights. Courts consider whether the insurer had a reasonable basis for its position and whether it acted fairly in reaching it. Punitive damages are more likely when the insurer's conduct was intentional, systematic, or part of a pattern.

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Delay, deny, defend isn't just a catchy phrase—it's a business model that has cost injury victims billions of dollars. Insurance companies count on people not understanding their rights, not having the resources to fight, and not knowing that the law protects them from exactly this conduct.

You don't have to accept it. Oklahoma law provides powerful remedies for bad faith, and experienced attorneys know how to use them.

At Addison Law, we've seen every variation of these tactics. We know how to document bad faith, how to demand accountability, and how to pursue the full range of remedies Oklahoma law provides. If an insurance company is treating you unfairly after your car accident, contact us for a free consultation.

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This article is for general information only and is not legal advice.