BEWARE OF THE INSURANCE COMPANY’S TYPICAL TACTICS

WHEN HANDLING YOUR CLAIM FOR DAMAGES

1)         IMMEDIATE OFFER TO SETTLE

The insurance company, even your own, is not your friend when it comes to handling your claim for damages.  If it is a case of clear liability on the part of the at-fault party, then their insurance company will often offer you a low initial offer with the hope that you will accept it in the infancy of your case, before you have had the opportunity to have your injuries fully evaluated.

This is a very wise tactic on the part of the insurance company, but normally not in your best interest, because at the time you accept this minimal, initial offer, the insurance company will require you to sign a release, which is a contract releasing their insured and; thus, the insurance company as well from any further damage claims against them as they relate to your accident and injuries.  Once you have had the opportunity to have your injuries evaluated, engaged in treatment (if necessary), and determined what your out-of-pocket medicals are going to be, then you can entertain the insurance company’s offer, but should not do so before exploration of your full damages, only then can you gauge whether the insurance company’s offer is fair.

There have been many occasions where people have consulted with us after they have accepted an initial minimum offer from the insurance company and signed a release in return, releasing the at-fault party.  Consequently, we have to sadly advise them that we are unable to assist them in obtaining fair compensation for their damages, even if they are facing down surgery, or some other serious future damages; all because they have released the at-fault party from their responsibility for some meager sum of money.  As they say, “Hindsight is 20/20.”

2)         ADVISE YOU NOT TO HIRE A LAWYER

Another common tactic of insurance companies is to advise claimants that they do not need to seek the advice of an attorney, because the attorney will charge them for their services.  The insurance company will encourage you to deal directly with them, because they will assure you that your net recovery will be higher.  This should be a big red flag to you that this does not pass the “smell test.”  The insurance company does not want you talking with a lawyer, because they know that the lawyer will advise you of what your rights are and what is in your best interest, not the insurance company’s; thus, evening the playing field.

If you hire an honest attorney, then their attorney’s fee should never hurt you as a result of their representation.  They should be able to recover for you the just compensation you deserve in your case and, therefore, cover the cost of their services as well.  The insurance company typically ends up paying more than they ever wanted to, because of the attorney’s involvement, and this is the true reason why the insurance company encourages you to not involve an attorney.  I could share with you countless true stories and real examples of these types of situations occurring regularly.

3)         RECORDED STATEMENT

The insurance company will almost always request that you provide them with a recorded statement.  DO NOT DO THIS VOLUNTARILY WITHOUT ADVICE FROM AN ATTORNEY.  You have absolutely NO OBLIGATION to give the at-fault party’s insurance company a taped statement and I would advise you not to do so.

However, you do have a contractual obligation to give your own insurance company a taped statement, if requested, as it is a requirement under your policy of insurance and they do not have to extend your benefits under your insurance policy with them if you refuse to cooperate.  My advice is to always have an attorney present or at least consult one, prior to providing this evidence to your insurance company though, as they could later turn around and use it against you in the future handling of your case.

4)         DELAYS IN PROCESSING YOUR CLAIM

Lastly, insurance companies will commonly drag the claims process out, especially with their investigations of liability and damages; thus, placing a slow financial squeeze on you and the compensation of your damages.  An attorney can often help move the whole process along by staying on top of the insurance company and providing information and documentation to help facilitate the investigation process and discourage the insurance company’s calculated or inattentive delays.

Obviously, this is not a comprehensive list of all the tactics used by insurance companies in the handling of your claims.  I would recommend that if you have any further questions concerning this or any further matters concerning personal injury, contact our office and we will gladly answer those questions for you.

We are always here for you.

Chuck