When you are injured in an auto accident in Maryland or Washington, DC, you need someone to turn to. In an ideal world, we would turn to our insurance company for help. After all, almost everyone already pays for insurance. They market themselves as “on your side” or there for you, “like a good neighbor.” Progressive alone spent about $1.22 billion in advertising in one year to convince you of its marketing goals. And despite the billions of dollars spent yearly on advertising, you still sit here wondering, are insurance companies fair? You are right to question their allegiances. Insurance company tricks after accidents can lead to a waiver of coverage and completely undermine the value of your case.
Despite their promises of support and quick resolutions, insurance companies are profit-driven businesses that generally prioritize profits over customer satisfaction. Only coincidentally do these goals align. Claimants may encounter various obstacles, such as odd delays, low settlement offers, or outright denials of valid claims because the insurance adjuster does not fully understand the applicable law.
Call Gelb & Gelb today for a free consultation on how to handle the insurance companies after an accident.
The Role of Insurance Companies
Insurance companies sign contracts with car owners to protect them from lawsuits in the event of an accident. These are binding, legally enforceable contracts. If an insurer refuses to provide coverage when the insurance contract calls for it, a couple of things happen. First, you have the right to sue the insurer for breach of contract. This is something we at Gelb & Gelb do regularly. Secondly, the insurance company loses its reputation. You may believe that insurance companies already have a bad reputation. And while this is true, they spend billions of dollars annually to improve their reputation. So clearly, it matters to them very much. Part of most insurance contracts is the obligation to comply with the insurer’s requests. So, if you are making a claim under an insurance policy held by an adverse driver, the insurer may employ the common tactics discussed below.
Some of these tactics can void coverage. One such tactic is as simple as understanding its insured’s version of events. In doing so, they may discover that coverage does not apply. For example, an insurer may discover the insured was driving for Uber or Lyft at the time of the accident. This almost always voids coverage for their company. They are afforded a reasonable amount of time to get in touch with their insured. Unfortunately, the insured, knowing they are at fault for the accident, mistakenly believes it is best to avoid their insurer’s attempts to contact them. When this happens, the insurer may send a representative to the insured’s home as part of a good-faith effort to maintain coverage and conduct an interview. If they still cannot get in touch, coverage breaks down, and the insurer’s primary role is not fulfilled.
Common Tactics Used by Insurance Companies
Insurance companies will deploy tactics to protect their bottom line, such as downplaying the severity of your injuries, disputing liability, or using complex policy language to limit coverage. Even with attorney representation, they will try to immediately get you to make a recorded statement where they ask you questions designed to trip you up and say something that can be used against you to deny liability at trial.
One of the many benefits of legal representation is that you will be told what they will ask in advance, so they do not catch you off guard. Even if you were not at fault for causing an accident, you may say something that causes the insurer to deny liability based on a quirk or technicality. Thus, we explore below the various tactics insurance companies may use, why they sometimes do not act fairly, and what you can do to give yourself the best chance at high compensation for your injuries.
Offering Quick Cash Settlements
Insurance companies employ various strategies to minimize the amount they pay on claims. Their goal is maximizing profits, which means minimizing the amount they pay you. One of the most common tactics is offering an early, low settlement to encourage you to accept less than you may be entitled to, especially when you may not fully understand the extent of your injuries or damages. They try to do this before you have legal representation. Insurers know an attorney can explain how your case is worth far more than they offer. They also know that you likely do not fully understand the value of your case and intend to exploit that. Furthermore, they understand how desperate people can be for immediate financial assistance following an accident. Many accident victims cannot work due to their injuries and thus cannot earn a living.
The insurance companies prey on this vulnerability. It is an effective tactic that leaves many accident victims with less than they deserve. Then, you are left on the hook with medical bills from an accident you did not cause. So, while it is tempting to accept the cash early on, by doing so, you lose the right to file a lawsuit for the same accident later on.
Delaying Settlement Offers to Frustrate Claimants
Insurance companies prey on this and offer you quick cash. However, this short-term benefit is to your long-term detriment. Another common tactic is preying on the same need for financial assistance. However, with this tactic, the insurer takes the opposite approach. They may acknowledge that your case is worth more than they offer, but they are slow to change their valuation, often dragging their feet. They hope you will agree to an unfair settlement out of frustration. Usually, this is an effective strategy because it feels like it is not worth waiting several more weeks for a 5% or 10% increase. Meanwhile, you have bills to pay and mouths to feed. In larger cases, some clients consider taking out a loan against a future settlement. We strongly advise against this. Even if the interest rates are not terrible, the hidden fees are.
We highly recommend speaking with your attorney before consulting with a pre-settlement loan service. If you have personal injury protection (PIP), you may be able to recover lost wages in advance of settlement. Or, your attorney could step up the pressure against the insurance company to reach an agreement quickly. In some settlement negotiations, waiting a few more weeks can earn you $10,000s or more in settlement value. Outside the vacuum of a pre-suit settlement, this is almost always worth it. However, insurance companies know that you are dealing with stress, physical pain, emotional trauma, and maybe even an inability to work. While it is unethical for the insurance companies to delay indefinitely, they have a lengthy grace period, and punishing them for delaying could take years.
Misinterpreting Policy Language to Deny Coverage
A third tactic is using complex policy language to misinterpret coverage, making it seem like certain damages are not covered when they may be. They may even have provisions in their insurance contract that are preempted by state or federal law. While most large insurance providers know not to do this, smaller companies may be less cautious and take advantage of a claimant without representation. Even with legal representation, this can bolster the tactic of delaying a settlement offer by pointing to policy language they argue would void coverage. Even though this is legally inaccurate, we then have to fight them at every turn to get you the coverage you deserve. While insurance companies are required to act in good faith, some will push the boundaries of interpretation to protect their bottom line.
In select instances, they cross that line. That is when we have the option to pursue a claim for bad faith. The benefit of a bad-faith claim is that you may be entitled to more coverage from the insurer than is written in the policy. For example, suppose the defendant has a 30|60|25 policy. This means there is coverage up to $30,000 per person, $60,000 per occurrence, and $25,000 for property damage. However, these are antiquated statutory minimums that do not always cover the full extent of your damages. However, a bad faith claim may put the insurer on the hook for an amount beyond those mandatory minimum limits.
Shifting Blame to Third Parties
Shifting blame to a third party is one of the most widely implemented insurance tactics we encounter. For example, when you are in a car accident involving three total vehicles, it is common for the other two drivers to blame each other. They may do this while knowing full well that you did not cause the accident. Just because no one blames you does not mean we can quickly resolve your case. As a result, we have to file a lawsuit against both drivers to sort out who is to blame. Or, a less ethical tactic may be for the insurance company to misquote a passenger in their insured’s vehicle. This can be effective because a passenger has the appearance of an impartial witness. However, when the insurance company then goes and misquotes that witness to the claimant in the other vehicle, the insurer is dealing in bad faith.
Another third-party option for the insurance company to shift blame to could be the vehicle manufacturer in the event of an auto accident. While the manufacturer may be jointly liable, it is likely also severally liable. This means the insurer’s policyholder remains liable for the damages in the accident, despite the manufacturer also being liable. While this will not always result in outright denial of coverage, it may delay a settlement. This hurts you because you have bills you need to pay. Thus, this slowdown can result in a loss of patience and ultimately in accepting a lower settlement offer. The insurance company knows this, which is why they delay in the first place.
Requesting Excessive Documentation
Requesting excessive documentation generally does not result in an outright denial of coverage. Although, if you are making an uninsured motorist claim, you do have a contractual obligation to comply with your insurer’s reasonable requests. So, if you take too long to produce documentation, your insurer may have the right to void coverage. This is not the case with the adverse insurer. That contractual obligation to comply with reasonable requests does not exist. Thus, you only need to produce documentation that is directly relevant to your claim under the applicable law in Maryland or Washington, DC. When an insurer requests excessive documentation, it can overwhelm a claimant. They may repeatedly request medical records, bills, proof of lost wages, or pre-accident health history. Sometimes, they even duplicate requests to frustrate or exhaust you.
A good attorney will not allow this to happen. A personal injury law firm maintains records of exchanges of information to avoid stall tactics. Moreover, the insurer likely has access to many of the documents they are requesting. For example, they may ask you for the police report when they already have access through their insured. Their client is a party to the accident, so they can obtain the report through them. However, they may ask for it directly from you, claiming it will be faster. And while it may be quicker if you already have the report, it is perfectly reasonable for you not to have the report. Then, you are stuck scanning and forwarding a copy of the report so they can avoid the cost of requesting it through the mail and slow down the resolution process.
Devaluing Medical Bills
A sixth common tactic by an insurance company is to devalue your medical expenses. While this is the last one we are covering, it can be the most frustrating of all. Very rarely will a judge devalue or reduce your medical bills. However, insurance companies do it constantly as a means of rationalizing a lousy settlement offer. They may question the necessity of your medical treatment. Insurers do this when the insurance adjuster has zero medical training themselves. They will argue certain treatments are unnecessary, excessive, or unrelated to the accident, even when your doctor prescribes them. While this may not be a compelling argument to us, it could be to someone who is not represented by a personal injury lawyer.
Within this same vein, they may argue that the medical charges exceed what is “customary” in the DC or Maryland area, even if you had no control over the provider’s costs. Sometimes, an insurer will cast doubt on the medical provider you go to. Especially if you go to a lesser-known clinic or one where the clinicians take longer to effectively treat you, they may argue that you did not properly mitigate your damages as a plaintiff. Their argument is that a better-known doctor would have treated you quicker and brought you back up to speed at a lower cost. This is a speculative argument that is often baseless and would realistically require its own expert testimony just to devalue your bills.
Red Flags in Dealing with Insurance Adjusters
There are many warning signs to watch for when interacting with insurance adjusters. Below are four of the most common red flags to be aware of during the claims process.
Pressure to Provide a Recorded Statement
When dealing with an insurance adjuster, it is crucial to be aware of certain red flags that may indicate unfair practices. The first sign to be mindful of is if they pressure you to provide a recorded statement. Sometimes, you must comply with the insurance company, get on record, and answer their questions reasonably. However, you sometimes have the right to refuse to give a recorded statement. The insurance companies may make you feel it is necessary, but that is not always the case. In our experience, sometimes even insurance agents struggle to understand when a statement is mandatory and when it is not. In these instances, we demonstrate the applicable law and ensure our client is clear of any investigators. If possible, we generally choose to avoid giving these statements. Nothing in these statements will help your case.
If something you say is beneficial to your case, that is not surprising and is something you could later testify to at trial. Conversely, if you slip up and do say something that hurts your case, this may be played at trial, undermining your credibility. Unfortunately, these points are true even when the statement is with your own insurer. They are likely to still be discoverable evidence at trial. Moreover, they have their own reasons for disclaiming coverage. For example, they may be liable for underinsured or uninsured coverage. Or, they may be looking for an excuse to increase your premiums. In any event, it is always best to speak with a car accident lawyer if you see this red flag.
Urging You to Sign the Documents Quickly
A second red flag to be mindful of is if the insurance adjuster insists you sign a document. You should always consult an attorney before signing anything with an insurance company. This is especially true if they do not give you ample time to review the document. It is a red flag that they may hide something in the document. Further, they may not tell you everything that the document covers. Later, if you question them, they may claim that they explained every aspect in detail when that is not true. Thus, you must ask for time to independently review the document when you do not feel pressured and after it has been reviewed by an attorney. Remember, insurance agents are experts at using clever wordplay to deny coverage. They may describe a signature as a routine step in the process.
However, they often neglect to discuss complex clauses that result in a waiver of coverage.
Lack of Responsiveness from the Adjuster
A third red flag to consider is if the adjuster is unresponsive. If you do not have a lawyer representing you, the insurance company knows you have no leverage in your negotiation. Thus, they may drag out the negotiation process as long as possible until the statute of limitations expires.
Overly Friendly Behavior
A fourth red flag is if the adjuster acts overly friendly. While this by no means is a bad thing, it is crucial to remember that the insurance company is not your friend. They are not on your side and often do not represent your interests. There are times when they do, but it can be tricky for a layperson to distinguish.
How to Deal with Insurance Companies
Contacting insurance companies after a car crash can be tricky to navigate, especially if you are injured. Insurance companies aim to pay both parties as little as possible, but there are steps that you can follow to maximize the potential of your claim.
Gather as Much Evidence as You Can
Gathering as much evidence as possible following an accident is extremely important when filing a claim with an insurance company. Valuable evidence can include pictures, videos, police reports, and proof of medical expenses. All this documentation can be used to help your attorney prove the details of your case.
Keep Records of Everything
Keeping track of everything that happened at the time of the accident is a great way to help make the most of your claim. For example, if you have any medical or car expenses, make sure that you organize your documents carefully and keep them readily available. Having key information at your disposal is essential and can help show that you are proactive.
Communicate Carefully and Clearly
Although it is the at-fault party’s responsibility to report incidents to their insurance provider, it is wise to contact the other driver’s insurance company to ensure everything is reported quickly and correctly. Similarly, apologizing to the other driver, insurer, or law enforcement could be used against you and taken as an admission of guilt or fault. Therefore, make sure that you do not apologize to the other person. Instead, consult your attorney on what should be said.
The Benefits of Legal Representation
Having an attorney when dealing with an insurance company can be invaluable. While we have covered many of the common red flags and common tactics utilized by insurance companies, many remain uncovered. Moreover, after over 70 years of practicing personal injury law in Washington, DC, and Maryland, we have optimized methods of overcoming insurance tactics and leveraging the full extent of civil law against the defendant to maximize your compensation. We will handle all communications with the insurance companies, reducing the probability of you saying something untrue or something that contradicts our position in your case.
While we have successfully resolved several thousand car accident cases via settlement, we have other tools at our disposal. If the insurance company denies your claim or offers an inadequate settlement, an attorney can escalate the matter, taking legal action if necessary.
Contact our office today for a free case consultation or evaluation. Our phone line is (202) 331-7227, available 24/7.
