Insurance Companies & Car Accident Claims

How Insurance Companies Handle Car Accident Claims

After a car accident, dealing with insurance companies is inevitable, whether you are filing a claim with your own provider or pursuing compensation from the at-fault driver’s insurer. While insurance companies are supposed to cover accident-related losses, their main priority is to minimize payouts. 

Understanding how they handle claims can help you protect your rights and avoid settling for less than you deserve.

The Claim Investigation Process

Once you report a car accident, the insurance company assigns a claims adjuster to investigate the case. Their job is to determine fault, assess damages, and calculate the lowest possible payout. The adjuster will:

• Review the police report and accident details.
• Examine vehicle damage and request repair estimates.
• Speak with witnesses and gather statements.
• Request medical records to assess the severity of injuries.

While this may seem like a routine process, insurance companies look for reasons to devalue or deny claims, making it crucial to provide strong evidence.

Determining Fault and Liability

Utah follows a modified comparative fault rule, which reduces compensation based on your percentage of blame. However, if you are found 50% or more at fault, you cannot recover damages.
This is the same code insurance companies use to assign blame and try to minimize payouts. 

To lower payouts, insurers may:

• Claim you were partially responsible for the accident.
• Use witness statements or accident reports to dispute liability.
• Argue that road conditions or third-party factors contributed to the crash.

Having solid evidence, such as photos, surveillance footage, and expert testimony, can help counter these tactics and prove the other party’s liability.

Offering a Low Settlement

Once the insurer completes its investigation, they will likely present a settlement offer. However, initial offers are often much lower than the actual value of your claim. Insurers count on victims accepting quick settlements before realizing the full extent of their damages.

Before accepting an offer, consider:

• Does it cover all medical expenses, including future treatments?
• Have you accounted for lost wages and reduced earning capacity?
• Does it compensate for pain and suffering caused by the accident?

Once you accept a settlement, you waive your right to seek additional compensation, so reviewing any offer carefully before agreeing is essential.

Delaying or Denying Claims

Insurance companies may use delay tactics to frustrate claimants and push them into accepting lower settlements. Standard stalling techniques include:

• Repeatedly requesting additional paperwork.
• Taking weeks or months to respond.
• Claiming the case is still under investigation.

In some cases, insurers outright deny claims, citing policy exclusions, lack of evidence, or liability disputes. If your claim is delayed or denied unfairly, legal action may be necessary to fight for rightful compensation.

When to Involve an Attorney

Hiring an experienced car accident lawyer from Utah can level the playing field if you’re struggling to get a fair offer. A lawyer can:

• Negotiate with insurers to secure a higher settlement offer.
• Gather and present compelling evidence to prove liability.
• Take the case to court if the insurer refuses to pay fair compensation.

Insurance companies handle car accident claims with one goal in mind: to protect their profits. From assigning blame to offering low settlements and delaying payouts, insurers use various tactics to minimize compensation. Understanding these strategies can help you navigate the claims process effectively. 

If you’ve been injured in a car accident, having Flickinger Boulton Robson Weeks on your side can ensure that you are treated fairly and receive the full compensation you deserve.

Common Tactics Insurers Use to Reduce Payouts

Insurance companies are in the business of making money, and one of the ways they protect their bottom line is by reducing the amount they pay out on car accident claims. Even when a claim is valid, insurers often use strategic tactics to minimize compensation or deny claims altogether. 

Knowing these tactics can help you recognize when an insurance company is trying to undervalue your claim and take the right steps to fight back.

Offering a Quick, Low Settlement

One of the most common strategies is to offer a quick but low settlement shortly after the accident. Insurers know that accident victims are often dealing with medical bills, lost wages, and financial stress, making them more likely to accept an early offer. 

However, these initial settlements rarely cover the full extent of a victim’s damages, including:

• Future medical expenses for ongoing treatment.
• Lost wages if the victim is unable to return to work.
• Pain and suffering caused by long-term injuries.

Accepting a quick settlement prevents you from seeking additional compensation later, so it’s crucial to evaluate any offer carefully before agreeing.

Disputing Liability

Another common tactic is shifting blame onto the victim to reduce or eliminate their payout. Since Utah follows a modified comparative fault system, if an insurer can prove you were 50% or more at fault, you lose the right to any compensation. Insurers may:

• Claim you were distracted or speeding at the time of the accident.
• Use selective witness statements or accident reports to argue that you contributed to the crash.
• Question the credibility of your version of events.

Having strong evidence, such as photos, video footage, and police reports, can help counter these claims and protect your right to compensation.

Downplaying Injuries

Insurance companies often challenge the severity of injuries to justify lower payouts. Common tactics include:

• Arguing that the injuries are pre-existing and not related to the accident.
• Claiming that medical treatment was excessive or unnecessary.
• Suggesting that the victim should have recovered sooner than expected.

To counter these claims, it’s important to seek immediate medical attention, follow your doctor’s treatment plan, and keep detailed records of all medical visits and expenses.

Delaying the Claims Process

Insurers know that delaying a claim can frustrate victims into accepting a lower settlement just to get the process over with. Some common delay tactics include:

• Repeatedly requesting unnecessary documentation.
• Taking weeks or months to respond to inquiries.
• Claiming the case is still under review despite having all necessary information.

These delays are designed to pressure claimants into settling for less. Working with a personal injury lawyer can help push the process forward and prevent unnecessary delays.

Misinterpreting Policy Coverage

Some insurance adjusters misrepresent the terms of your policy to limit their payout. They may tell victims that certain damages are not covered when, in reality, they should be included. Insurers also attempt to shift responsibility to other parties, such as your own insurance provider, to avoid paying out.

Insurance companies use a variety of tactics to reduce payouts, including low settlement offers, liability disputes, downplaying injuries, delaying claims, and misinterpreting policies. Understanding these strategies can help you navigate the claims process effectively. 

If you suspect an insurer is unfairly handling your claim, consulting with an experienced car accident lawyer can help ensure you receive the compensation you deserve.

How to Negotiate with an Insurance Adjuster

After a car accident, negotiating with an insurance adjuster can be a challenging process. Adjusters are trained professionals who work for the insurance company, and their goal is to minimize payouts while closing claims quickly. 

Knowing how to handle negotiations can help you secure a fair settlement that fully covers your damages.