When you are injured in an auto accident, you need someone to turn to. In an ideal world, it is our insurance company that we turn to for help. After all, almost all of us already pay 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 alone to convince you of its marketing goals. And despite the billions of dollars spent yearly on advertising, you still sit here wondering, do insurance companies handle everything fairly? You are right to question their allegiances.
Despite their promises of support and quick resolutions, insurance companies are profit-driven businesses that often aim to maximize profits. 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.
The Role of Insurance Companies
Insurance companies may 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 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 quirk or technicality. Here, we explore 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.
Common Tactics Used by Insurance Companies
Here, we discuss insurance companies’ common tactics to minimize their payouts 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. Further, they know how desperate people can be for immediate financial assistance after an accident. Many accident victims cannot work due to their injuries and thus cannot earn a living.
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.
Misinterpreting Policy Language to Deny Coverage
A third tactic is using complex policy language to misinterpret coverage, making it seem like certain damages aren’t 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 get away with it and take advantage of a claimant without representation.
Red Flags in Dealing with Insurance Adjusters
There are countless red flags to be aware of when dealing with insurance adjusters. Here are four of the most common red flags.
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, sometimes, you have a right to refuse a recorded statement. The insurance companies may make you feel it is necessary, but that is not always the case. In our experience, sometimes not even the insurance agents understand when you must provide a statement and when not to. In these instances, we must show the applicable law and get our client clear of any investigators.
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 serious 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 independently to review the document when you do not feel pressured.
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 runs.
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.
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 thousands of 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.
