I have been representing accident victims against insurance
companies for the past 15 years. My office has handled
hundreds, if not a few thousand, accident cases during this
time. By representing hundreds and hundreds of accident
victims over the years, you begin to see how the insurance
industry deals with victims after they begin the claim
process following the accident.
I have found that most insurance adjustors are highly
trained adversaries, although most people would never think
this, at least not in the beginning of the claims process.
Now, most people understand that the insurance company's
job is to make money and that one way it does this is by
settling claims for less than the claim is worth. Yet,
most people are unaware of how sophisticated, yet simple,
the methods the carrier will utilize to help it accomplish
this goal.
Here are some questions that often will make the insurance
company squirm. No, the carrier doesn't like it when you
ask these questions because it either cannot answer the
question or worse, the answer is one they do not like to
hear.
QUESTION 1: Isn't it true that if I use an attorney, I'm
likely to recover more money in settlement than if I try to
settle the claim on my own?
ANSWER: Don't be surprised if the adjustor lies to you and
says "no" to this important question. How do I know that
answer is false? Because a study by the Insurance Research
Council (a nonprofit group funded by major insurance
companies across the nation) and titled "Paying for Auto
Injuries" found that the average total payout on claims
that have an attorney is 4.8 times greater than those
claims where the injured victim settled on his or her own.
This same study showed that individuals who use an attorney
receive 3.28 times more money after the attorney's fee is
paid. Most insurance claims adjustors are very aware of
this study. So, if the insurance company wants to maximize
profits it will train its claims representatives to go to
great efforts to dissuade people from hiring an attorney.
Simply put, the insurance companies know that if you hire
counsel you will likely get more money in settlement, even
after deducting the lawyer's fee.
QUESTION 2: How can the insurance company verify that the
settlement amount being offered to me is fair and
reasonable?
ANSWER: It can't and it won't! Sure, the adjustor will
tell you that settlement offer is reasonable and fair but
he can't verify or prove it to you that everyone with
similar injuries never receives more. Unless you are in
the business of negotiating and settling injury claims
there is little chance you will know whether the settlement
amount that is being offered is fair. Therefore, by
negotiating and settling the claim yourself without using
the assistance of a professional (i.e., personal injury
attorney) you run the risk of accepting a sum that may turn
out to be much less than what is considered reasonable for
your type of claim.
QUESTION 3: Why do I have to give you a recorded statement
when you can get information about the accident from the
police report?
ANSWER: Because the insurance company will try to use your
own statements against you! In most accidents a police
report will be filed and the insurance company has easy
access to this report (it just takes a written request and
a small fee). So why is a recorded statement necessary?
Most companies have written policies in place which require
the adjustor to get a recorded statement to see if there's
any information the accident victim might reveal which
could be later used to either deny the claim or pay out
less money when settlement occurs.
QUESTION 4: If I give you a recorded statement, can I then
get a recorded statement from your own insured, i.e., the
other driver?
ANSWER: No! This will never happen. It seems fair though
doesn't it? If you have to give a statement about the
accident, then why can't you also get a statement from the
other driver? Yet, the insurance adjustor will never allow
this for the same reasons you should never give a recorded
statement to the insurance company.
QUESTION 5: Why do I have to give you an unrestricted
medical authorization before I can settle the claim?
ANSWER: So the adjustor can go fishing into your past
medical history and find anything about your prior health
which will help the company either deny your claim or pay
out as little as possible. You can just as easily collect
your accident-related records and send them to the carrier
for its review at time of settlement. But usually if you
are not represented by counsel the carrier will never
accept this. By using an attorney, the attorney can
usually put limits on how much medical information needs to
be disclosed.
QUESTION 6: Shouldn't I wait to settle the claim until my
medical treatment concludes, or until I'm sure that I have
made a full recovery?
ANSWER: No, because the insurance company knows that the
quicker you settle the claim the less money it will have to
pay out. Once you settle the claim you can't reopen the
case if it turns out your injuries are more severe or if
you need more treatment as recommended by your doctor.
Most insurance companies have in place written directives
to its claims department to settle every claim as quickly
as possible so the accident victim can't re-open the case
later if the person's condition gets worse.
QUESTION 7: Why hasn't anyone told me about Uninsured
Motorist (UM) or Underinsured Motorist (UIM) coverage?
ANSWER: Probably because too few people know that they may
have additional coverage under their own policies which
will pay for the injuries and damages caused by a car
accident. If the at-fault driver has no insurance, or not
enough insurance to pay for your damages, then your own
insurance company is responsible for paying you additional
compensation under the UM/UIM portion of your policy. Many
insurance companies obviously don't want you to know about
this coverage because it may mean that you are entitled to
more compensation!
QUESTION 8: If you are claiming that my medical treatment
is excessive or unreasonable, will you pay my doctor to
write a detailed report explaining why my treatment has
been appropriate and related to the accident?
ANSWER: Of course not! The insurance company will always
refuse this request. And why should it? Although the
claims adjustor has absolutely no medical training, nothing
stops him or her from arguing that your treatment was
excessive or unreasonable. This is just one way how the
carrier will say anything to whittle down the value of your
claim so you accept a much smaller settlement than what
you're otherwise entitled to. An experienced personal
injury attorney on your side will solve this problem!
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Christopher M. Davis is the managing partner of Davis Law
Group. He brings over 15 years of practical yet innovative
experience to personal injury cases. He practices law in
Seattle, WA. You can learn more about Mr. Davis at
http://www.InjuryTrialLawyer.com . Copyright 2007
Christopher M. Davis.
