The aftermath of a car crash is often overwhelming and stressful. One likely point of stress is dealing with insurance companies. It is important to remember that insurance companies are businesses with a primary focus on their financial bottom line. While they provide a necessary service, their interests may not align with those of the victim. This misalignment often becomes evident during the claim review process, where tactics to minimize payouts can significantly impact the victim’s compensation.
It is important for victims of motor vehicle accidents to understand these tactics when fighting for appropriate compensation after a wreck. Three strategies insurance providers commonly use to reduce the financial impact on their bottom line include the following.
Strategy #1: Initial lowball offers
Insurance companies often start the negotiation process with a lowball offer hoping that you will accept it out of immediate financial necessity or because you are not fully aware of the value of your claim. This is especially common when victims have not yet consulted with a lawyer who can provide a realistic assessment of damages.
This can include offering a sum that covers only immediate medical expenses but ignores long-term care needs or proposing a settlement that overlooks potential lost wages or other impacts on your ability to earn. It is important to remember that you do not have to accept this offer. You can advocate for the compensation you deserve.
Strategy #2: Delays in processing claims
Another tactic is to deliberately delay the claims process. By prolonging the process, insurers take advantage of the financial pressure that weighs down the injured party. This pressure can lead to accepting lower settlements out of desperation to resolve financial issues quickly.
This may include requiring unnecessary or repetitive submission of documents that the insurance company already has or that are not relevant to the claim or failing to respond to queries or provide updates on the status of your claim in a timely manner.
Strategy #3: Disputing medical treatments and costs
Insurers often dispute the necessity or cost of medical treatments to minimize the amount they have to pay. They might argue that certain procedures were not necessary or that you should have opted for cheaper alternatives.
Understanding these tactics can empower you to handle your insurance claim more effectively. Knowledge of what to expect and the strategic use of legal guidance can help to better ensure that you receive fair treatment. If you find yourself facing any of these tactics, consulting with a legal professional who understands the intricacies of Texas insurance law can be a crucial step in securing the compensation you rightfully deserve.