Auto Insurance Secrets: What Companies Hide From You

Auto insurance companies have a variety of tricks up their sleeves to avoid paying out claims, and it's important to be aware of your rights and entitlements when dealing with them. After an accident, insurance companies will often try to lowball claimants by offering a settlement that is far lower than the value of their claim. They may also try to get claimants to inadvertently say something that could be used against them to deny their claim. It's important to remember that you don't have to speak to insurance claims adjusters and that you can hire a lawyer to protect your rights and negotiate on your behalf.

You can hire a lawyer immediately after a crash

After a car accident, you may be in shock or confused about what to do next. It is important to remember that you have the right to hire a lawyer at any time during the process, and doing so can help protect your rights and ensure you receive fair compensation. Here are some reasons why hiring a lawyer immediately after a crash can be beneficial:

Protect Your Rights

The aftermath of a car accident can be chaotic, and insurance companies may try to take advantage of the situation. By hiring a lawyer right away, you can ensure that your rights are protected. An experienced lawyer will guide you through the process, advise you on what to say and what not to say, and deal with the insurance companies on your behalf.

Understand Your Entitlements

Insurance policies can be complex, and it can be challenging to determine what you are entitled to without legal expertise. A lawyer can carefully review your policy, explain your rights and entitlements, and ensure you receive the full amount of compensation owed to you. They will also help you understand the applicable laws, including no-fault insurance laws and comparative fault rules, which can impact your case.

Deal with Insurance Companies

Insurance companies may try to minimise their payouts by employing various tactics, such as low-balling settlements or pressuring you to accept a quick settlement before the extent of your injuries and damages are known. A lawyer can handle all communication and negotiations with insurance companies, counter unsatisfactory offers, and advocate for your best interests. They have the experience and knowledge to navigate the confusing laws and regulations surrounding insurance claims.

Gather and Preserve Evidence

To build a strong case, it is crucial to gather and preserve evidence promptly after a crash. A lawyer can assist in collecting vital evidence such as witness statements, police reports, medical records, and surveillance footage. They may also work with accident reconstruction specialists to analyse the scene and establish who was at fault. This timely collection and analysis of evidence can make a significant difference in the outcome of your case.

Navigate Legal Procedures

If you are unfamiliar with legal procedures, court proceedings, and the claims process, a lawyer can provide invaluable guidance. They will handle the paperwork, ensure that deadlines are met, and represent you in court if necessary. Their courtroom experience and litigation skills can be crucial in presenting your case effectively and pursuing the best possible outcome.

Focus on Your Recovery

Dealing with the aftermath of a car accident can be stressful and time-consuming. By hiring a lawyer, you can offload the burden of navigating the legal process and negotiating with insurance companies, allowing you to focus on your health and recovery. This can be especially important if you have sustained serious injuries that require ongoing medical treatment.

In conclusion, while hiring a lawyer immediately after a car crash is not mandatory, it can be highly beneficial. A lawyer can protect your rights, ensure fair compensation, and guide you through the complex legal process. Remember that you have the right to seek legal counsel at any time, and it is essential to prioritise your well-being and recovery during this challenging time.

Insurance companies may low-ball your settlement

It is important to understand that insurance companies are businesses, and as such, their focus is on making a profit. This means that they may try to low-ball your settlement, offering you a lower amount than what you are entitled to or deserve. Here are some things to keep in mind if you find yourself in this situation:

• Hire a lawyer: An experienced accident lawyer can review your policy, protect your rights, and ensure you receive the full amount of compensation available to you. They can also communicate and negotiate with the insurance company on your behalf.
• Understand your rights and entitlements: Know what compensation you are entitled to under the law and the terms of your policy. This includes understanding the coverage limits, exclusions, and deductibles.
• Don't be fooled by friendly adjusters: The insurance adjuster may seem friendly, but their goal is to protect the interests of the insurance company and minimize payouts. Be cautious in your conversations with them, and consider having your lawyer handle all communications.
• Don't accept a lowball offer immediately: A lowball offer is a red flag that the insurance company may not be treating you fairly. You are not required to accept their first offer, and it is common for there to be back-and-forth negotiations before a final settlement is reached.
• Gather evidence: Collect evidence to support your claim, such as medical records, employment records, and other documentation that demonstrates the extent of your losses. This can help you build a strong case and counter any inaccurate facts or claims made by the insurance company.
• Stay polite and professional: While dealing with a lowball offer can be frustrating, it is important to remain calm and professional in your interactions with the insurance company. Yelling or cursing will not help your case and may even hurt your reliability as a witness.
• Ask questions and seek clarification: Try to understand the reasoning behind the lowball offer. Ask the adjuster for specific details and explanations. This information will be valuable when formulating a counteroffer.
• Provide documentation and facts: Keep records of everything related to your claim, including injuries, damage to property, medical bills, lost wages, and any other relevant information. Present this evidence to support your case for fair compensation.
• Consider mediation or arbitration: If you are unable to reach an agreement with the insurance company, you may consider involving a third-party neutral mediator to help settle the dispute. If necessary, you can also pursue a formal inquiry or lawsuit in court.
• Be prepared to negotiate: Understand that negotiating a settlement may take time and involve multiple offers and counteroffers. Work closely with your lawyer to determine an acceptable settlement amount and strategize your approach.

The other driver's insurance company is not your friend

After a car accident, you will likely receive a phone call from a claims adjuster representing the other driver's insurance company. It's important to remember that this person is not your friend and is not looking out for your best interests. Their goal is to protect their company and limit the amount of money they will have to pay you. They will try to get information from you that can be used to deny or reduce your claim.

• You are not legally obligated to speak to them. In most states, you are only required to speak with a representative of your own insurance company.
• If you do speak to them, be polite and calm, but keep the conversation brief and simple. Provide only the necessary information, such as your name, address, and phone number. Do not volunteer any details about the accident, your injuries, or your insurance.
• Do not elaborate or provide any unnecessary information. Answer their questions with a simple “yes” or “no” whenever possible.
• Do not allow them to record the conversation or give a written statement. This can be used against you later if there are any inconsistencies in your statements.
• Refrain from speculating or guessing about anything you are unsure about. Only provide information that you know to be true.
• If they ask about your injuries, say that you are waiting to hear back from your doctor or that you have not had a proper medical examination yet. Do not downplay your injuries or say that you are not hurt.
• Be aware that they may try to trick you into admitting fault or partial fault for the accident. Avoid answering questions that imply you could have done something to avoid the crash.
• Do not agree to a settlement over the phone or sign anything. They may try to push for a quick settlement, but you should refuse and consult with your lawyer first.
• Remember that their primary goal is to pay you as little money as possible. They are not on your side, and they will use any information you give them against you.
• If you are unsure how to handle the situation, it is best to seek legal advice from a personal injury lawyer or an experienced accident attorney.

You can fight back if your insurance company denies your claim

When you sign an insurance policy, you enter into a contract with your insurance provider. This contract requires the insurance company to act in "good faith". If your insurance company wrongly denies your claim or doesn't pay for the benefits you're supposed to receive, they are acting in "bad faith" and violating that contract.

If your claim is denied, you can appeal the decision—a lawyer can help but is optional. Here are some steps you can take to appeal a denied auto insurance claim:

• Gather evidence: Review any documentation provided by the insurance company and gather evidence to support your appeal. This could include police reports, eyewitness information, photographs, medical reports, and other supporting evidence. Make copies of everything to provide to the insurance company so you can keep the originals.
• Draft an appeal letter: This letter will spell out why you disagree with the insurance company's decision. Make sure you explain why each piece of information was provided, such as any police reports. Provide as much detail as possible, referencing policy information and the claims denial letter as needed.
• Consider hiring an attorney: If you are not comfortable taking these steps or want an expert's opinion, it may be a good idea to hire an attorney. They can review the case and supporting documents to draft a demand letter requiring the insurance company to respond and defend its claim denial. While it may cost you money upfront, it could be a worthwhile expense to have the claim denial overturned if you feel your insurer made the wrong decision.

If your claim was denied in bad faith, you might be able to file a bad faith lawsuit. An insurer that acts in bad faith can be liable for damages, possibly including punitive damages. However, proving bad faith is challenging.

To prove a third-party bad faith claim, you'll need to show fairly egregious misconduct by the insurance company. For example, if the company engages in fraud when handling your claim, you'll be more likely to win a bad faith case.

Insurance companies may try to get you to sign away your rights

Signing an insurance release form is a critical step in the claims process. It is a legal document that releases the negligent party and their insurance company from liability and obligation to compensate you for damages caused by an accident. Once signed, you cannot reopen the claim or seek further compensation for future losses. This is why it is essential to consult a personal injury attorney before agreeing to a settlement amount and signing any release forms.

Insurance companies may employ bullying tactics and try to pressure you into signing away your rights. They may present a settlement offer as the best and only option available to you, but this is rarely true. They have a strong incentive to pay you less than you deserve and may even use friendly overtures or hostile language to get you to agree to their terms. They may also try to disguise release forms by using words like "authorization" to make you believe you are simply following protocol.

It is crucial to understand what you are signing. A release form will typically mention the settlement payment details, accident details, your claim for property damage or bodily harm, and the identification of all involved parties. Don't take the insurance company adjusters at their word, as their job is to get you to sign the form and possibly agree to a lesser settlement amount. Always document conversations with the insurance company and seek legal advice before signing anything.

By hiring a lawyer, you can level the playing field in negotiations and ensure that your claim seeks the maximum compensation to which you are entitled. Lawyers can evaluate the size of your claim, investigate and build a strong case, and get your claim taken seriously by insurance companies. They know how to respond to insurance company tactics and protect your rights throughout the process.

Frequently asked questions