Dealing With Insurance Companies After An Accident
In the case of nearly every car accident, one of the first steps you, the injury victim, will want to take to begin recovering compensation for your injuries and losses is to file an insurance claim. You can file a first-party claim with your insurance carrier, or you may choose to file a third-party claim with the insurance carrier of the at-fault driver. In either event, however, pursuing a claim through an insurance carrier can be frustrating and confusing. More on this website
Insurance companies – like any other for-profit business – exist to make profits for their shareholders. An insurance company makes a profit when the number of premium payments it receives from its policyholders exceeds the amount it pays for legitimate claims submitted to the company. Conversely, an insurance company will lose money if the amount it receives in the form of premiums is less than the amount it expends in paying legitimate claims. Therefore, any insurance company (whether you are its customer or a policyholder) has a significant financial incentive to pay as little as is legally permissible on your claim.
How Does the Insurance Claim Process Work?
How your insurance claim is handled will depend on whether you file a first-party claim or a third-party claim:
When filing a first-party claim with your insurance company, you must report the crash to your insurance company. Depending on your carrier, this initial report may need to be made in writing, online, and by telephone. Your insurance company may ask you to provide a recorded statement about the crash and how it occurred. Still, it is usually better to consult with an experienced insurance claim attorney before doing so. Once your claim is submitted, your insurance company will send an adjustor who will review your injuries and losses and verify your coverage. If the adjustor finds you have suffered a covered loss, your insurance company will pay your claim up to your policy limits.
When you file a third-party claim, the process is nearly identical to the process applicable in the case of first-party claims. The significant difference between the two is that before the other driver’s insurance company pays your share, the insurance company will want to determine whether their insured driver is at fault for causing the crash. If selected, it will pay your claim up to the insured’s coverage amount. If your first-party or third-party claim is denied, the insurance company will usually inform you of the reason your claim was denied and what you can do to appeal the decision.
What is the Relationship Between an Insurance Claim and a Car Wreck Lawsuit?
An insurance claim and a car crash lawsuit are vehicles through which injured drivers and passengers can obtain compensation for the harm they suffer due to the crash. While insurance claims may be quicker than car wreck lawsuits (especially first-party claims), an insurance carrier presented with a legitimate claim will only pay up to the policy’s limit. If your injuries and losses exceed the policy’s limits, you will need to initiate a car accident lawsuit to recover the difference. No law prohibits or limits your ability to obtain total and fair compensation.
When you file a first-party claim, your insurance company will likely seek compensation for the money paid to you from the at-fault driver and his or her insurance company. This may benefit you because as you pursue your lawsuit for additional compensation, your insurance company will follow its claim against the same defendant(s). Therefore, you and your attorney may work cooperatively with your insurance company’s representatives to successfully resolve your claim and lawsuit.
What Should I Keep in Mind While Speaking with an Insurance Company?
After a crash, you must remain on guard when speaking with any insurance company representative (even your own). While the representative/adjustor may appear friendly and as if he or she wants to help, these individuals may attempt to obtain information from you that can reduce or deny your claim. As a result, keep the following tips in mind:
*Do not give an insurance representative any written or recorded statements without first talking with an attorney. Comments you make in writing or over the phone can be used to assign fault to you and thereby reduce – or even deny – your claim. An attorney can help you prepare a written statement (or prepare you to give a recorded statement) that accurately describes the events of the crash while still protecting your rights.
*Do not believe that you must accept the insurance company’s first offer. Recall that insurance companies can only make money when the amount they pay for claims is greater than the amount they receive in premiums. As a result, the initial amount that an insurance company offers you to settle your claim may be unrealistically low. Before agreeing to accept any payment on your claim, it can be helpful to have an attorney review the offer to ensure you receive an appropriate amount for your losses.
*Avoid signing any document expressing “waiving” your rights or “releasing” your claim. Insurance companies regularly present these documents and make signing them a condition of accepting a payment from the insurer. However, these documents may make it impossible for you to pursue additional legal rights you may have.
Our Accident Attorneys are here to help you protect your legal rights and recover a compensation award that adequately addresses your losses and expenses following a car wreck. Contact our office to learn how we can help you deal with insurance companies and the claims process. Call today and speak with our knowledgeable and dedicated legal team.