Dealing with insurance companies after a car accident can be as challenging as the accident itself, especially when navigating the seedy tactics they use to reduce payouts.
“As a for-profit company, every time the insurer settles a claim, they lose out on money. That’s why they often do whatever they can to reduce the amount you’ll be awarded,” Raybin & Weissman, P.C. explains.
Thankfully, knowledge is power. And the more you know, the less likely it is that you’ll be taken advantage of. Here are five common tactics car insurance companies use to reduce payouts and how you can recognize them from the start.
1. Quick, Lowball Settlement Offers
One of the most common strategies insurance companies use is offering a quick settlement after an accident. On the surface, this might seem like a good thing. After all, who wouldn’t want to resolve their claim quickly and move on? But these quick offers are usually lowball settlements designed to entice accident victims into accepting less than what they deserve. The insurance company knows that you may be dealing with mounting medical bills, car repairs, or even lost wages, and they hope you’ll take the first offer to ease those financial burdens.
However, accepting a quick settlement before you fully understand the extent of your injuries or damages can leave you with less compensation than you’ll need in the long run. Injuries like whiplash or concussions can sometimes take days or weeks to manifest, and repair costs for your vehicle might be more extensive than they initially appear. Before agreeing to any settlement, it’s crucial to consult with a lawyer and get a clear picture of the total damages you’re facing.
2. Disputing the Severity of Your Injuries
Another common tactic is for the insurance company to dispute the severity of your injuries. Even if you have medical records and a doctor’s diagnosis to support your claim, the insurer may argue that your injuries aren’t as serious as you say. They might claim that you’re exaggerating your pain or that your injuries were pre-existing and not caused by the accident. This is often an attempt to minimize the amount they’ll have to pay in medical expenses and compensation for pain and suffering.
To counter this tactic, make sure you document your injuries thoroughly. Keep all medical records, doctor’s notes, and treatment plans related to your injuries. You also need to attend all follow-up appointments and follow your doctor’s recommendations. (The more detailed your medical documentation is, the harder it will be for the insurance company to dispute your claim.)
3. Challenging Medical Treatments as Unnecessary
Insurance companies will sometimes try to reduce their payout by arguing that certain medical treatments you received were unnecessary. They might claim that your treatment plan was excessive or that you could have recovered just as well with fewer doctor’s visits or without certain procedures. Their goal is to minimize their financial responsibility for your medical bills.
If an insurance company challenges your treatment, it’s important to rely on your healthcare provider’s expertise. Your doctor knows what’s best for your recovery, and they should be able to explain why the treatment you received was necessary. Having a lawyer on your side can also help you push back against the insurer’s claims and ensure that your medical needs are fully covered.
4. Delaying the Claims Process
Another frustrating tactic insurance companies use is delaying the claims process. After an accident, you’re likely eager to get your claim settled and move on with your life. The insurance company, however, might drag its feet in the hopes that you’ll become desperate and accept a lower settlement just to resolve the issue. They may ask for excessive documentation, repeatedly request additional information, or claim that your paperwork is incomplete.
These delays can be frustrating, especially if you’re dealing with unpaid medical bills or can’t afford to repair or replace your vehicle. If the insurance company is intentionally delaying your claim, it’s important to remain patient and persistent. Keep detailed records of all your interactions with the insurance company, and if the delays continue, consult with a lawyer who can help you hold the insurance company accountable.
5. Using Your Words Against You
Car insurance companies often attempt to use your own words against you. After an accident, the insurance adjuster may ask for a recorded statement or even casual comments about the accident. They might seem friendly and supportive, but remember, their job is to protect the company’s bottom line. Anything you say, even a simple comment like “I’m feeling fine,” could be twisted and used to minimize your claim.
For example, if you tell the adjuster that you’re “feeling better” or “just a little sore,” they could argue that your injuries aren’t as severe as your claim suggests. To avoid this, it’s best to avoid discussing the details of the accident or your injuries with the insurance company until you’ve spoken to a lawyer. Let your attorney handle all communications with the insurer to prevent any misunderstandings or misstatements that could hurt your case.
Adding it All Up
Car insurance companies are not your friends. They have one agenda – and that’s to make as much money as they possibly can. As an accident victim, they see you as someone who is attempting to cut into that profit.
When you know this, you can prepare for their tactics and protect yourself from being victimized twice.
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