Insurance companies will seek to decrease payments or deny claims for injuries caused by an insured person’s actions.
Summary
- Insurance companies want to avoid paying out large claims, even if they are valid.
- To protect their profits, insurance companies may engage in and effort to delay the settlement, deny a legitimate claim, or decrease the compensation they offer in hopes that accident victims will accept a lower offer.
- A personal injury attorney can help accident victims combat insurance company tactics to recover the compensation they deserve.
After becoming injured, victims of accidents want nothing more than to move on from the traumatizing experience. Unfortunately, due to the tactics of insurance companies, accident victims are faced with excessive paperwork, lengthy phone calls, repetitive interrogations, and the risk that the insurance will deny their claim. This can last for months, even years.
You need a team that can hold insurance companies accountable for the full value of your claim and advocate for your personal injury rights. The personal injury attorneys of Sand Law LLC can offer you the experienced representation you need. Schedule a free consultation with us by calling (651) 362-4162 or filling out a contact form.
Scheme 1: Insurance Companies May Try to Deny Your Claim
Under Minnesota’s bad faith statutes, if an insured person can prove that an insurance company denied a claim for no worthy reason, a court can order compensation from the company because of this wrongdoing. Unfortunately, that is not enough to stop them from trying.
Insurance companies have their own attorneys who are familiar with current laws and loopholes. They may try to cite technicalities to deny your claim and protect their bottom line.
Some of the techniques that most insurance companies use to deny claims include:
Denying Damages
Insurance companies could have a tough time trying to deny destruction from a fire or an injury claim for a multiple car pile-up. But many injury-causing accidents are subtle. Following an accident, adrenaline is high is high, and it can mask pain. When you walk away seemingly unscathed, insurance companies can use that as evidence to deny your claim. That’s one reason why it’s important to get documented medical care following an accident.
Downplaying Injuries
If they’re not able to deny your claim for damages, insurance companies will try to minimize the severity of your injuries in an attempt to minimize what they have to pay you. This is more apt to happen with injuries they consider healable such as broken bones and whiplash. The reality is that injuries like these can come with chronic pain, and you should be compensated accordingly.
Scheme 2: Insurance Companies May Try to Delay Your Claim
If you’ve ever called a large corporation of any kind, you probably know what it feels like to be placed on lengthy holds and passed around from department to department in search of answers. Insurance companies are no exception. They can make it difficult to get updates about the status of your claim and will have you jumping through hoops.
Their stall tactics are designed to exhaust you in hopes that you’ll give up on trying to collect. Even when they know they have to pay out eventually, it’s in their best interest to hold onto what is known as free float, money that insurance companies set aside to pay claims.
Instead of paying you in a timely manner, insurance companies can keep that money in investments. The longer they stall, the more they make. Meanwhile, you’re going without.
Stalling tactics used by insurance companies include:
Confusing the Victim
Accidents happen quickly. In the midst of being injured, it’s virtually impossible to take in every detail. Likewise, in the aftermath, it’s normal to be in a daze. Insurance companies know you’re not in the best frame of mind, and their agents can take advantage of this. Be especially wary if the other party’s insurance company tries to contact you directly.
They may attempt to lead you into sharing details that will make the accident look like your fault. Insurance companies use written documents to confuse you as well. Reading insurance documents can feel like reading the terms and conditions after downloading a new app. Most of us are guilty of skimming.
Insurance companies know this. As such, they’re hoping we’ll overlook important details. While they should communicate with consumers in plain language, their policies are often not straightforward. Consequently, you may not notice if they’re not providing all of the coverage they’re supposed to.
Waiting for Death
In some circumstances, an insurance company will intentionally delay the outcome of a claim, waiting for the injured party to pass away. This is more common when they stand to lose substantial sums as well as when the accident victim is critically ill or especially elderly. If the insurance company has their way, no one will pursue the claim after a death. However, survivors can still recover compensation for a loved one’s estate.
Scheme 3: Insurance Companies May Try to Decrease Your Claim
To lessen their payout, insurance companies can try to shift a percentage of the fault to you by claiming your actions contributed to your injury. Say, for example, you’re hit by a driver who ran a light. The insurance company will look for evidence that you were somehow breaking a traffic law such as going over the speed limit. Similarly, a company may claim that your injuries are a result of prior trauma rather than the accident in question.
Tactics employed by insurance companies in an attempt to lower your compensation amount include, but are not limited to:
Using the Upper Hand
With 78% of Americans living paycheck to paycheck, it’s clear that it is difficult to get by in the best of times. Insurance companies know that this is doubly true for accident victims who are grappling with personal injury damages like lost wages and medical bills. They’re known for offering lowball amounts to entice those who are struggling to settle.
What You Can Do to Safeguard Your Rights from Insurance Companies’ Schemes
Facing life after an accident can be overwhelming, especially when faced with the tactics of insurance companies aiming to diminish your rightful claims. Understanding the strategies used by these companies to delay, deny, or devalue settlements is crucial to ensuring you receive fair compensation.
By arming yourself with knowledge and the right resources, you can effectively protect your rights and maximize your recovery.
Gather and Preserve Evidence
One of the most critical steps you can take after an accident is to gather and preserve evidence. This includes taking photographs of the accident scene, your injuries, and any property damage. Be sure to collect contact information from any witnesses and obtain a copy of the police report.
By doing so, you create a solid foundation for your claim, making it difficult for insurance companies to dispute your version of events. Documentation is key in proving liability and the extent of damages, enabling you to counteract any attempts by insurers to diminish your claim.
Avoid Giving Recorded Statements
Insurance adjusters may request recorded statements as part of their investigation. While this might seem like a routine procedure, it’s crucial to understand that these statements can be used against you.
Adjusters are skilled in asking questions that may lead to answers that could potentially harm your claim. Politely decline any requests for recorded statements until you have consulted with a seasoned Minnesota personal injury lawyer. This precaution helps prevent unintentional admissions or inaccuracies that could be exploited to reduce your settlement.
Be Wary of Early Settlement Offers
Insurance companies often attempt to settle claims quickly and for the lowest amount possible. These early settlement offers might seem tempting, especially if you are facing financial pressure, but they often do not reflect the true value of your claim.
Accepting a low offer can leave you without sufficient funds to cover ongoing medical expenses or other damages. It is critical to fully understand the scope of your injuries and potential long-term impacts before agreeing to any settlement. Consulting with a personal injury attorney can provide clarity on the fair value of your claim.
Consult with a Personal Injury Lawyer
The complexities of dealing with insurance companies can be daunting, especially when you’re also trying to recover from an accident. Working with an experienced personal injury lawyer, such as those at Sand Law LLC, can be invaluable.
These professionals can navigate the legal system, negotiate with insurance companies on your behalf, and fight for your right to fair compensation. A knowledgeable lawyer understands the tactics used by insurers and can help you build a strong, evidence-backed case to maximize your claim.
Keep Detailed Records of All Expenses
Accurate and detailed record-keeping of all expenses related to your accident is vital. This includes medical bills, repair receipts, lost wages, and any incidental costs incurred due to the accident.
Keeping thorough records supports your claim by providing evidence of the financial impact the accident has had on your life. This documentation is essential for your lawyer when calculating a fair settlement amount and ensures that no aspect of your financial burden is overlooked.
Understand Your Policy and Rights
Lastly, it’s important to familiarize yourself with your insurance policy and understand your rights as a policyholder. Knowing the coverage you are entitled to can help you identify any discrepancies in the insurance company’s handling of your claim.
If you suspect your claim is being mishandled, a lawyer can help interpret policy language and advise you on the best course of action. By following these steps and securing the guidance of experienced legal professionals, you can protect your rights and work towards a settlement that accurately reflects the impact of your accident.
Sand Law LLC is committed to advocating for accident victims and ensuring they receive the justice and compensation they deserve.
Contact an Experienced Personal Injury Attorney Today
Following an accident-related injury, the recovery process itself is lengthy and grueling as is. The rest shouldn’t be drawn out any further than necessary. At Sand Law, we are committed to lightening the burden for our clients so they can move forward in peace.
If you’ve been injured, our experienced attorneys will combat the underhanded insurance tactics to secure the utmost compensation for you. Contact us online or call us for a free consultation at 651-291-7263.