Filing a car accident insurance claim can be a stressful experience. As much as every driver wants to have a smooth hitch-free process, it usually does not go as such. Studies have found that an estimated 43,000 car crashes occur across the US every year.
Out of these, only less than 1% lead to fatalities. This means the rest do involve a certain degree of injuries or automobile damage that calls for an insurance claim. The only sad part is that this process can be confusing and overwhelming, mainly due to the insurer’s tactics.
This article will discuss why the journey from auto insurance claims filing to settlement can be tedious. Also, we will talk about tips for negotiation, including the need for legal support.
Common Tactics Insurers Employ
Let’s be upfront on the fact that insurance companies are profit-generating enterprises at the end of the day. When a claim is filed after a car accident, it becomes a threat to their resources.
Naturally, they would employ certain tactics to ensure minimal money is given when a claim is filed. Let’s look at the three typical limitations of working with an insurer –
Lowball Settlement Offers
Car accidents are often complex. Let’s take a recent example that occurred in the vibrant Illinois city of Edwardsville. A serious T-bone collision took place between two vehicles – a Ford Bronco and a pickup truck. The accident happened on North Main Street in the city.
In the aftermath, four people had to be hospitalized out of which one was severely injured and others received minor injuries. Now, it may take weeks or months for the victims to recover. To hasten the settlement process, the insurer may likely make a lowball offer.
Moreover, given the type of crash, more than one party may be at fault. This can also be difficult to determine and the insurer will try to use the claimant’s words against them. Let’s not forget that certain injuries show their true colors only after months of the incident.
Such a case could better be settled with the help of an Edwardsville personal injury lawyer with industry experience in complex automobile accidents. Otherwise, the victim may have to settle for an amount lower than they deserve.
Claims Denial or Delays
If the victim has done accurate prior calculations, they will be able to discern the insurer’s previous tactic. If they refuse to settle for a lowball offer, the insurer may try to downright deny the claim or delay the settlement process.
This is a smart move that often works in the insurance company’s favor because claimants are already overwhelmed with the accident’s aftermath. When they’re further pressured, a lot of them decide to settle for a low amount just to be done with the hassle.
Shifting of Blame
The third tactic is blatantly unfeeling and cruel, but it’s important to understand that it is a business that we are speaking of. As a final resort, the insurer may attempt to shift the entire blame of the accident upon the victim.
According to TorHoerman Law, this is done to minimize liability and ensure a low compensation. If the victim recoils in fear and yields to such a tactic, they will receive less than what they deserve.
Read also: Motorcycle Touring: How to Prepare for an Epic Adventure
Useful Tips for Negotiation
We understand that simply learning about an insurance company’s unfair compensation tactics does not help. This is why we will offer some practical tips to properly negotiate.
- The process starts with accurate claims calculation. Before sending a demand letter to the insurer, include the expenses involved for damages like hospitalization, disabilities, lost income, cost of repairing the vehicle, etc.
- Since the insurer will fight against the amount mentioned in the demand letter, always aim high. In other words, it is wise to demand at least 20% to 25% more than what your damages may amount to.
- Before making any negotiations, have a specific minimum settlement figure in mind. Without this, you will find it extremely challenging to keep your negotiations on track.
- In case you’re not happy with the insurer’s first offer, decline it and let the insurance adjuster justify the proposed amount.
- Do not disclose any unnecessary information before the insurer, including any doubts regarding your liability in the accident. Keep in mind that all information can and will be used against you.
- Keep all the required documentation on damages handy because an insurer will demand proof that justifies the claimant’s settlement amount.
Why Legal Support is Often Needed
The tips mentioned above help ensure an insurance company does not take undue advantage. However, most cases are so convoluted that hiring a personal injury attorney early on may be the best thing to do.
Attorneys are well-versed in how a settlement offer progresses. They also know all the tricks in an insurer’s books that could shortchange the claimant. They will review the claimant’s documents against the insurance policy to calculate an accurate settlement amount.
Even an attorney’s primary aim is to have the case settled outside the court. If persistent efforts fail, they will take care of the lawsuit filing process as well.
Before we close, it’s important to mention that certain factors decide whether accepting the insurer’s settlement offer would be practical or not. For instance – if the amount you may recover via a lawsuit would scarcely be higher than the insurer’s offer, the latter is undoubtedly better.
Similarly, if the attorney senses some uncertainty in taking the case to court, they may advise you to accept the insurer’s settlement offer. Auto claims due to car accidents had significantly reduced during the pandemic due to reduced travel.
They have increased again as we see more and more crashes occurring across the US. This process does not have to be a losing battle provided one has a plan and an experienced attorney by their side.
