Car accidents are unfortunate and inevitable events that occur on the roads every day. After an accident, drivers typically rely on their insurance companies to cover the financial burden of repairs and medical bills. However, some insurance companies employ dishonest tactics to minimize or deny claims, leaving the policyholder to bear the costs. This article will uncover the hidden tactics used by car accident insurance companies, provide real-life examples, and offer guidance on how to protect yourself from these unscrupulous practices.
Denying legitimate claims
One of the most blatant dishonest tactics used by insurance companies is denying legitimate claims. Insurers may allege that the policyholder is at fault for the accident, even when evidence suggests otherwise. This tactic is designed to force the claimant to settle for a lower amount or abandon the claim altogether.
Example: In 2015, a motorist was rear-ended at a stop sign by another driver who was texting while driving. Despite the police report and witness statements supporting the motorist’s claim, the insurance company denied the claim, stating that the policyholder had stopped suddenly, causing the accident. After a lengthy legal battle, the motorist eventually received the deserved compensation, but not without significant financial and emotional stress.
Delaying claims processing
Another common tactic used by insurance companies is delaying the claims processing. Insurers may take an excessively long time to investigate the claim or request additional information, even when it is not necessary. This strategy aims to wear down the claimant, causing them to accept a lower settlement or give up on the claim.
Example: In 2018, a woman was injured in a car accident and required extensive medical treatment. Her insurance company took six months to process her claim, during which time she accrued medical bills and lost wages due to her inability to work. Feeling pressured by mounting debts, she accepted a lower settlement offer from the insurance company, which did not cover all her expenses.
Misrepresenting policy coverage
Some insurance companies may try to misrepresent the policy coverage, claiming that certain damages or medical expenses are not covered. This can lead the policyholder to believe they have no recourse and must pay out-of-pocket for their losses.
Example: A man was involved in an accident that resulted in extensive damage to his car. His insurance company claimed that his policy did not cover the specific type of damage, despite the policy stating otherwise. Upon further investigation, it was discovered that the insurance company had deliberately misrepresented the policy coverage to avoid paying the claim. The man eventually received the full compensation after taking legal action.
Offering lowball settlements
Insurance companies may offer a lowball settlement, meaning an offer that is far below the fair value of the claim. This tactic relies on the claimant’s lack of knowledge or desperation to settle quickly, resulting in a reduced payout.
Example: A family was involved in a severe car accident that left them with significant medical expenses and vehicle damage. The insurance company offered a settlement that barely covered their vehicle repairs, leaving them with mounting medical bills. After consulting with a lawyer, the family rejected the offer and pursued a fair settlement, which they ultimately received.
Surveillance and social media monitoring
Insurance companies may use surveillance or social media monitoring to gather evidence that contradicts the claimant’s statements. This evidence can be used to minimize or deny the claim, even if it is taken out of context or misrepresented.
Example: A woman filed a claim after a car accident left her with chronic pain and limited mobility. The insurance company monitored her social media accounts and found a photo of her at a party, smiling and seemingly pain-free. They used this photo as evidence to deny her claim, stating that she was not as injured as she claimed to be. In reality, the photo was taken before the accident, and the woman was still experiencing significant pain and mobility issues. She had to provide medical records and witness statements to prove the true extent of her injuries and ultimately received the compensation she deserved.
Misleading medical evaluations
Some insurance companies may require claimants to undergo an independent medical examination (IME) with a doctor chosen by the insurer. These doctors may be incentivized to minimize the claimant’s injuries or even claim they are unrelated to the accident.
Example: A man suffered a back injury in a car accident and filed a claim with his insurance company. The insurer required him to undergo an IME with a doctor they selected. The doctor’s report stated that the man’s injury was pre-existing and not related to the accident. However, the man’s own doctor and medical records confirmed the injury was a direct result of the car accident. He eventually received compensation after proving the inaccuracy of the IME report.
Confusing or intimidating claimants
Insurance companies may try to confuse or intimidate claimants by using complex legal language or threatening legal action. The goal is to make the claimant feel overwhelmed and more likely to accept a lower settlement or abandon their claim.
Example: A woman filed a claim after being injured in a car accident. The insurance company sent her numerous letters filled with legal jargon and threatened to take her to court if she did not accept their lowball settlement offer. Feeling intimidated and confused, the woman sought legal advice and was able to receive a fair settlement through negotiations with the insurance company.
How to protect yourself from dishonest insurance tactics:
- Educate yourself: Familiarize yourself with your insurance policy and the claims process so you know what to expect and what is covered.
- Document everything: Keep detailed records of the accident, medical treatments, and any correspondence with the insurance company.
- Consult with our lawyers: If you feel your insurance company is acting dishonestly or unfairly, consult with an experienced personal injury attorney who can provide guidance and represent your best interests.
- Be cautious on social media: Be mindful of what you post on social media, as insurance companies may use your posts against you.
- Be persistent: Do not be discouraged by delays or denials; continue to fight for the compensation you deserve.
Dishonest tactics by car accident insurance companies can leave policyholders feeling helpless and frustrated. By being aware of these tactics and knowing how to protect yourself, you can ensure that you receive the compensation you are entitled to. If you feel you are being treated unfairly by your insurance company, do not hesitate to seek legal advice from Parker Waichman LLP to help navigate the complex claims process and advocate for your rights.
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