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How Insurance Companies Devalue Your Claim

When you’ve been injured in an accident, dealing with the aftermath can be overwhelming. Between managing medical treatments and navigating the emotional toll, the last thing you need is an insurance company trying to minimize your claim. Unfortunately, this is a common reality many face as a personal injury lawyer can attest. Insurance companies often employ various tactics to reduce the amount they have to pay. Understanding these strategies can help you protect your rights and secure the compensation you deserve.

The Early Contact Tactic

One of the first tactics an insurance company might use is contacting you soon after the accident. They might seem friendly and supportive, offering to help expedite the claims process. However, their primary goal is to gather information that can be used to devalue your claim.

Key Strategies They Use:

  1. Recorded Statements: Insurance adjusters may ask for a recorded statement, implying that it’s a standard procedure to process your claim. In reality, they are looking for inconsistencies in your account or admissions that can be used against you. For instance, you might inadvertently downplay your injuries or fail to mention all symptoms, which can later be cited to dispute the severity of your condition.
  2. Leading Questions: Adjusters are trained to ask questions that might lead you to make statements harmful to your case. They might ask how you are feeling, hoping you will say you are “fine” or “getting better,” which can be interpreted as you not being seriously injured.
  3. Pressure to Settle Quickly: Offering a quick, low settlement is a common tactic. The adjuster might suggest that accepting a swift payment will help you avoid the hassle of a prolonged claims process. This initial offer is typically far below the true value of your claim. Their goal is to settle the case before you fully understand the extent of your injuries and the associated costs.

Tactics During Negotiations

Even if you avoid the pitfalls of early contact, insurance companies have other strategies to devalue your claim during negotiations as our friends at Aaron Feuer Law can explain:

Common Negotiation Tactics:

  1. Disputing Liability: Adjusters may argue that their policyholder was not entirely at fault or that you share responsibility for the accident. This tactic, known as comparative negligence, can significantly reduce the compensation you receive.
  2. Medical Record Requests: They might ask you to sign a medical release form to access your medical records. While this might seem reasonable, they could use this access to search for pre-existing conditions or other factors that could explain your current injuries, thereby minimizing their liability.
  3. Delaying the Process: By dragging out the claims process, they hope you will become desperate and willing to accept a lower settlement. The longer you go without compensation, the more likely you might be to settle just to cover your immediate expenses.

Protecting Yourself Against These Tactics

Being aware of these strategies is the first step in protecting your claim. Here are some practical steps you can take:

  1. Consult an Attorney: Before speaking with an insurance adjuster or accepting any settlement offers, consult with a personal injury attorney. They can provide valuable guidance, handle communications with the insurance company, and help ensure you are treated fairly.
  2. Document Everything: Keep detailed records of all communications with the insurance company, including dates, times, and the names of the people you spoke with. Also, document your injuries, treatments, and the impact on your daily life.
  3. Be Cautious With Statements: When speaking with an adjuster, avoid making definitive statements about your injuries or the accident. It’s okay to say you don’t know or need more information before answering.
  4. Don’t Rush To Settle: Take your time to understand the full extent of your injuries and consult with medical professionals before considering any settlement offers. A quick settlement might not cover long-term medical costs and other damages.
  5. Know Your Rights: Understanding your rights and the claims process can prevent you from being taken advantage of. An attorney can explain the nuances of your case and help you navigate the complexities of the legal system.

Insurance companies are businesses focused on minimizing payouts, and they often employ various tactics to achieve this goal. By being aware of these strategies and taking proactive steps to protect yourself, you can increase your chances of receiving fair compensation for your injuries. Remember, consulting with a personal injury attorney is one of the most effective ways to safeguard your interests and ensure you are not shortchanged by insurance companies.

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