Dealing with an insurance company after a car accident is one of the most stressful points in a car accident case. Insurance companies will seem cooperative at first but make no mistake: their goal is to protect their bottom line.
Car accident victims don’t realize insurance companies have tactics they use to minimize the amount of money they pay in claims. Understanding their tricks will help you protect your rights and remain vigilant, so you can get the compensation you deserve in your case.
Offering a Quick Settlement Before the Full Extent of Injuries is Known
One common tactic used by insurance companies is to offer a quick settlement right after the accident. You see it frequently around holidays such as Christmas when people welcome extra spending money for gifts for loved ones. The insurance company will reach out to a victim before they have a clear understanding of what exactly their injuries are and the long-term impact these injuries will have on their lives. The strategy is to simply get the car accident victim to accept a lower payout before medical bills, ongoing treatments, or lost wages start to accumulate and they know the true value of their case.
Car accident victims feel pressured to accept this early settlement offer because they need immediate financial assistance. However, accepting a settlement too soon can leave you without enough compensation to cover long-term medical expenses, lost income, and other damages from the car accident. Once you agree to a settlement, you waive your right to pursue any further compensation even if new medical issues arise later. Before accepting any offer, make sure you truly understand the scope of your injuries by consulting with an experienced car accident lawyer.
Denying or Downplaying Liability
Another tactic insurance companies love after a car accident is to deny or minimize liability for the accident. Insurance adjusters will claim the insured was not at fault or that you share a significant portion of the blame. In New York, which follows a comparative negligence rule, this tactic can be effective because it reduces the amount of compensation you receive based on your percentage of fault.
If the other driver’s insurance company argues you were 30% responsible for the accident, they can reduce your compensation by that same percentage. Insurance companies use various arguments to downplay liability, like claiming you were speeding, distracted, or otherwise negligent. They rely on statements made by the car accident victim immediately after the accident or during the claim process in support. Be cautious when discussing the accident with the insurance adjuster before you speak with a car accident lawyer at Horn Wright, LLP—one misstatement will be used against you throughout the case.
Using Delays to Pressure You
Insurance companies use delay tactics to wear down car accident victims. They know injured individuals will be faced with mounting medical bills, loss of income from not being able to return to work, and other financial pressures that will make them willing to accept a low settlement offer just to resolve the case. The insurance company drags out the claim process in hopes of getting the car accident victim desperate, making them more likely to settle for less than they should.
Delays can take many forms, from requesting the same documentation over and over even after it’s been sent, to taking a long time to make decisions, or simply not responding to communications. These tactics are designed to frustrate car accident victims and make them feel as if they don’t have a choice but to accept a low settlement offer. Remain patient, and if you begin to sense any type of unreasonable delay, you should contact a car accident lawyer immediately.
Misinterpreting or Misrepresenting Policy Terms
Insurance policies are full of complex language and fine print. This makes the terms and requirements of the policy difficult for the average person to understand. Insurance companies take advantage of this by misinterpreting or misrepresenting policy terms to deny or reduce claims. They’ll claim certain things are not covered or that there are limitations or exclusions in the policy that prevent you from being fully compensated.
A classic scenario is that the insurance company will argue your policy only covers certain types of injuries or that it does not cover specific treatments or medical procedures. They’ll also misinterpret policy limits or claim that you do not meet the conditions required to receive compensation. In some cases, the insurance company might suggest that you don’t qualify for certain benefits, like No-Fault benefits, even when you do.
To avoid being taken advantage of, it’s important to review your insurance policy carefully and consult with a car accident attorney if the insurance company is denying your claim.
Asking for a Recorded Statement
One of the most common tricks an insurance company uses is asking car accident victims for a recorded statement before they have a chance to consult with a car accident lawyer. They’ll present this request to the car accident victim as a routine part of the claims process. In reality, the goal is to gather information that can be used against you. Insurance adjusters are trained to ask leading questions that will prompt you to say things that can be misconstrued, such as admitting fault or downplaying the severity of your injuries.
An insurance adjuster might ask how you’re feeling on the phone during a recorded statement. If you say you’re “feeling better,” they could use this statement to argue that your injuries are not as serious as you claim right after the accident. Similarly, they may ask about your activities after the accident, trying to find evidence that contradicts your injury claims and that you’re still able to do your activities of daily living. Recorded statements are often taken out of context and used to reduce or deny your claim down the road.
It’s important to remember you’re not required to give a recorded statement to the other driver’s insurance company. If you are asked for a statement, it’s a good idea to decline and consult with a car accident lawyer. Your lawyer will ensure you don’t damage your case by unintentionally saying something the insurance company will twist against you.
CONCLUSION
Insurance companies are in the business of making profits, and one of the ways they do that is by minimizing what they pay out in claims. They can appear helpful and cooperative at first, but their tactics are often designed to reduce or deny compensation to car accident victims. If you’ve been involved in a car accident, one of the first things you should do is consult with an experienced car accident lawyer. Call us now to speak with one of our experienced car accident attorneys.