7 Insurance Company Tricks to Reduce Your Car Accident Settlement

By Christopher Hoffmann  Dec. 30, 2019 9:15a

7 Insurance Company Tricks to Reduce Your Car Accident Settlement

The expenses that a car victim has in the aftermath of the incident can be huge, and the insurance company of the at-fault driver is expected to pay for them. When you suffer painful and debilitating injuries, you might believe that it's only just and expected for all your expenses to be paid by the liable driver (through their insurance policy or personally.) So, it might come as a surprise that the insurer tries to get away without paying you anything or paying just a fraction of the settlement.

The harsh truth is that insurance companies will try to minimize their own expenses, often using strategies that do not benefit the victim at all. Here are 7 examples of how insurance companies will try to minimize the amount they will spend on your settlement.

1. Dragging the Claim Process

One of the most common strategies used by insurance companies is to delay the claim process, in the hope that you will be so pressured by your piling medical bills that you will give in and take an undervalued first settlement. There are many ways in which the claim process can be dragged, but it's important to keep your ground and fight for the right settlement amount.

2. Denying Valid Claims

It doesn't always happen, but some companies act in bad faith and refuse valid claims from the very beginning, hoping that you will not have the energy or knowledge to appeal the claim denial.

3. False Settlement

By issuing a memo from a supervisor which does not represent the correct amount you should expect from your claim, insurance companies representatives are trying to convince you that there is no chance of getting a higher amount.

4. Obtaining a Recorded Statement from You

Insurance companies will do their best to find things that they can use against you. By offering a recorded statement to the insurance adjuster, you are enabling them to search for discrepancies between your statement, misinterpret your words and undervaluing your settlement.

5. Intimidate You By Emphasising Shared Fault

Even if you did have a shared fault in the accident, it doesn't mean that you are not entitled to file a settlement claim. Check the laws of your state to see how shared fault is handled, and don't let the insurance company exaggerate your contribution to the accident.

6. Convincing You to Sign a Medical Authorization Waiver

Never sign a medical authorization waiver requested by your insurance company. They are trying to dig your medical history for clues that could be interpreted as influencing factors for your damages that are unrelated to the accident. Or they could use this type of information to demonstrate a bigger part in the shared fault.

7. Offering You a Quick Settlement

One of the easiest strategies companies use is to offer a quick settlement to desperate victims, which they often take because they want to end the stress related to their medical bills and lost wages. The reality is that first offers are almost never realistic, and can cost you more in the future if you sign a release of liability form and you discover injuries that got worse in time.

These are just some examples of the lengths insurance companies often go to trying to minimize a car accident settlement. The best thing you can do for yourself is to hire an experienced St. Louis car accident attorney who can protect you from these actions.