If you are dealing with a personal injury claim from a car accident, it is inevitable that you will have to deal with an insurance company that represents an individual or other party responsible for the accident. Insurance coverage and liability can be a complex area to navigate, but having some idea of the basic principles involved can help you recover the compensation you deserve for your accident injury, medical expenses, and other loss.
Insurance companies do everything they can to tell us that they are looking out for us and that they represent our best interests. If you watch TV you probably see many insurance company commercials telling you how quick and easy it is for you to file a claim and get your car repaired after an accident. While they lure us in with these promises they leave out the important fact that they really are in business to make a profit and the lengths they will go to in order to protect their own interests. Here are just a few things insurance companies would rather you not be aware of:
Insurance Companies Profit More from Investment than Premiums
If you understand how insurance companies really work, then you know that their profits dictates the way they do business. Most consumers believe that their premiums are the main source of the insurance companies’ income but that is not at all true. After your insurance company gets your premium, it puts that money to work to make additional profits. Investing your premium is the main source of their income and this is why they work so hard to not pay out large sums of money when it comes to settling a claim.
Insurance Companies are Likely to Settle
Insurance companies do everything they can to convince you not to seek legal advice. Many insurance companies will make direct threats to anyone who mentions that they are thinking of getting legal counsel, as a way to discourage people from doing so. Those who retain a personal injury law firm receive more compensation historically than those who don’t seek representation. If you have experienced legal representation, then the insurance company is more likely to settle out of court as a way to end the matter quickly, cut their losses, and avoid incurring additional costs.
Negotiations are Recorded
Claims adjusters are trained to be excellent negotiators. They also record everything you say in hope of finding inconsistencies in your claim. If you were to contradict yourself, you give the insurance company a way to reduce its liability or even challenge your claim entirely. This is another reason why you don’t want to negotiate or even communicate with an insurance company without speaking with an attorney.
The insurance company would only offer you an easy or quick resolution if it was in its own best interest to do so. If they can get you to take a small payout and the matter can go away, it is in their best interest to do so that rather than take a bigger hit if the matter were to go to court. It is important to remember the way in which insurance companies make their profit. If they think that a small payout will reduce their payouts and increase their profits, that is what they will do.
It is in the Insurance Company’s Best Interest to Settle Cases Out of Court
Insurance adjusters will treat you initially like they don’t care if you take your case to court or not. Insurance companies make money playing their delaying tactics, but they will lose money when they have to pay out courts costs and other legal fees. If they know you have a solid case, they will opt to settle your case as quickly as possible. It is a matter of cutting their loses, and not risking additional costs.
The attorneys at McMahon, Kublick & Smith personal injury law firm in Syracuse have helped thousand of clients with weather related accident claims. Contact us today to arrange a free consultation with one of our highly qualified Syracuse accident injury lawyers to learn more about your legal options.