What to Know About Insurance Companies in Personal Injury Lawsuits

When you file a personal injury claim, the other person or business, if they have an insurance policy, will inform the insurer about the lawsuit. In many instances of personal injury, the payor will be the insurance provider. You might believe that the insurance company will handle your case fairly and provide compensation for your losses. While many insurance adjusters are good people, it is important to understand that insurance companies are businesses that prioritize their profits. As a result, they might employ tactics to minimize payouts or deny claims altogether. While a seasoned personal injury attorney will anticipate all of these tactics, it is important for clients to personally understand them, as understanding these strategies can help you protect your rights and maximize your compensation. Here are some top tips for dealing with insurance companies.

Tip 1: Do Not Fall For Friendly Smiles

One of the most important things to understand is that insurance companies are not looking out for your best interests. Their primary goal is to pay as little as possible on claims, as this helps them to maximize profits. Adjusters may seem friendly and sympathetic about what pain that you have suffered, but their job is to gather information that can be used to reduce or deny your claim. It is very important that you speak through your attorney and say as little as possible, as your statements can be used to later reduce or deny your claim.

Tip 2: Do Not Be Dissuaded By Delayed Claims Processes

A common tactic that insurance companies will use is delaying the claims process in the hopes that claimants will become frustrated and accept a lower settlement or even give up on their claim. Insurance companies might take weeks or months to respond to inquiries, request unnecessary documentation from the victim, or repeatedly ask for additional information. Delays in getting a settlement can be particularly harmful if you are facing mounting medical bills or lost wages due to your injury. The longer the process drags on, the more desperate some claimants become, leading them to accept a lowball settlement just to move forward. To counteract this tactic, keep detailed records of all of your correspondence with the insurance company and be sure to follow up regularly. A personal injury attorney can also help to pressure the insurance company.

Tip 3: Avoid Accepting the First Offer Made By The Insurance Company 

Insurance companies frequently make quick settlement offers soon after an accident, hoping that claimants will accept before realizing the full extent of their damages. These initial offers are almost always far below the actual value of a claim and rarely account for future medical expenses, ongoing treatment, or long-term impacts. Lots of people will take the offer, thinking that this is the maximum amount that they can get, or believing that if they do not accept, they will not get any money. Many personal injury victims who accept a quick settlement often regret it later when they discover additional medical costs or complications related to their injuries. For instance, they might suffer a back injury in a car accident. While the settlement covers their immediate medical bills, it will not cover the chronic back pain they will struggle with for the rest of their life. Once you accept an offer, you typically waive your right to pursue additional compensation. Before agreeing to any settlement, it’s crucial to consult a personal injury attorney to ensure you are getting a fair amount.

Tip 4: Anticipate That Insurance Companies Will Point Out Pre-Existing Conditions

Another common tactic that insurance companies employ is to claim that your injuries were not caused by the accident but were instead pre-existing conditions. For instance, if you are complaining of back pain after being in a car accident, the insurance company might try to claim that you have a history of back pain and so the car accident was not the cause. The insurer may request access to your medical records in an attempt to find evidence of previous injuries or health issues that they can use to deny or reduce your claim. While pre-existing conditions do not necessarily disqualify you from compensation, insurers may use them to minimize their payout. If you have prior injuries, a medical professional can help differentiate between your pre-existing condition and the new injuries caused by the accident.

Tip 5: Do Not Believe That Consulting A Personal Injury Attorney Will Complicate Things

Insurance companies would strongly prefer that you do not have a personal injury lawyer. Insurance companies know that claimants who have legal representation typically receive higher settlements than those who negotiate on their own. To prevent this, adjusters may pressure you to accept an offer before you have a chance to consult with a lawyer. They may claim that hiring an attorney will only slow down the process or that the legal fees will eat into your settlement. However, in most cases, an attorney can negotiate a significantly higher settlement that more than offsets their fees. Never let an insurer rush you into accepting an offer before seeking legal advice.

Tip 6: Do Not Simply Accept Denied Claims

Some insurance companies outright deny valid claims without providing a clear explanation, hoping that claimants will give up and walk away. This is especially common in cases where the claimant does not have legal representation. However, just because the claim is denied, it does not mean that you cannot still recover. The reason for the denial could be something as simple as a paperwork error. If your claim is denied, request a written explanation and review the insurer’s reasoning. In many cases, a denial can be challenged through an appeal or legal action. A personal injury attorney can help you fight back against an unfair denial and hold the insurance company accountable.

Contact an Experienced Personal Injury Attorney 

Do not negotiate with an insurance adjuster alone. Make sure to have an experienced personal injury attorney by your side.