(and probably even hummed their tunes or laughed at their jokes). These ads position them as helpful, friendly, and on your side. It doesn’t matter which company it is; their basic message is we’re here for you when something goes wrong. And when you’re paying your premium every month with nothing going wrong, that feels about right.
However, the dynamic shifts the moment you file a claim. The company that was happy to collect your premium is now financially motivated to pay you as little as possible. That’s their business model. And the less you know about how the process works, the better it works for them.
Here are some things they’d rather you didn’t understand:
- The First Offer Is Just Fishing
When an insurance adjuster contacts you after an accident with a settlement offer, that number wasn’t calculated based on what your claim is worth. It was calculated based on what they think you’ll accept. There’s a significant difference between those two things.
Early offers come fast for a reason. You’re dealing with medical bills, a damaged vehicle, missed work, and the stress of the whole situation. A check for $5,000 or $10,000 feels like relief. The adjuster presents it as a reasonable number and might even suggest that hiring an attorney would just eat into your settlement through legal fees.
What they don’t tell you is that the initial offer represents just a fraction of what you’d receive if you understood the full value of your claim. Insurance companies track their data carefully. They know that you’re much more likely to accept a lowball offer if you don’t have an attorney in your corner.
- You Don’t Have to Talk to Their Adjuster
After an accident, the at-fault driver’s insurance company will contact you. (Sometimes within hours.) They’ll ask for a recorded statement about what happened and make it sound like they expect you to cooperate immediately. And most people comply because they assume they’re required to. But you’re not.
You have no legal obligation to provide a recorded statement to the other driver’s insurance company. And doing so without advice from a car accident attorney creates huge risks. Everything you say in that recording becomes material the insurance company is able to use to evaluate and minimize your claim.
A casual comment like “I’m doing okay” gets documented as evidence that your injuries aren’t serious. And speculating about what happened as a way to be helpful can just make things more complicated for you. Politely decline the recorded statement and tell them to direct communication through your attorney. If you don’t have an attorney yet, tell them you’ll respond after you’ve had a chance to consult with one.
- Your Claim Is Worth More Than Medical Bills
Most people think of a car accident claim in terms of their medical expenses and vehicle damage. Those are real costs, and they’re part of the claim. But they’re not all of it, and insurance companies are happy to let you think they are.
“The basic elements of your traffic accident claim include that the other driver engaged in some form of negligence that breached their responsibility to your safety,” The Law Offices of L. Morgan Martin, P.A. explains. “This negligence must have been the direct cause of the accident, and you must have suffered legal damages as a result.”
Those legal damages extend well beyond what shows up on a hospital bill. They can include:
- Lost wages during your recovery period
- Reduced earning capacity if your injury affects your ability to work long-term
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
These non-economic damages are legitimate components of a personal injury claim, and in many cases, they represent a larger portion of the claim’s total value than the medical expenses themselves.
- Signing a Release Ends Everything
When you accept a settlement, you sign a release that basically forfeits your right to pursue any further compensation related to the accident. This sounds obvious, but the implications are more serious than most people realize when they’re signing.
If your injuries worsen after the settlement, or you suddenly need surgery that wasn’t anticipated, it doesn’t matter. The insurance company’s obligation to you is over.
This is why settling before you’ve reached maximum medical improvement is dangerous. You’re accepting a number based on incomplete information about your own medical future. An experienced attorney won’t let you sign a release until the full scope of your injuries and treatment needs is clear.
Adding it All Up
The insurance industry is built on a power dynamic where they understand the rules of a game that everyone else doesn’t. As a result, they try to push through quick settlements as a way of underpaying and getting off the hook for the true value of the claims that come across their desks. The best thing you can do is hire an attorney who handles these cases and knows how to push back against the insurance companies. At the very least, this gives you a fighting chance.
Recent Comments