How Insurance Companies Turn Bigger Profits
Traffic accidents happen, and they are nothing if not traumatic. Whether the driver behind you was distracted by his or her smartphone and rear-ended you, an aggressive driver ran you off the road, or any other dangerous incident transpired, you know that your next steps include ensuring that everyone involved is safe, calling the authorities, and trading contact and insurance information with the at-fault motorist. Next, it is time to call the at-fault driver’s insurance company, which is when things can get especially complicated.
The Insurance Company
Insurance companies are paid to cover injured parties like you, but they are also for-profit businesses. The primary way to increase these profits is obviously by decreasing the amount they pay out in settlement offers. To help in this endeavor, many insurance companies engage in the following:
The at-fault driver’s insurance company may attempt to sell you on the idea that you are partially responsible for the accident, which means your settlement will be reduced by the percentage that you are determined to be at fault. For example, the insurance company may claim that you did not maintain a sufficient lookout, which is – in essence – a form of victim-blaming. Do not buy into what the insurance company is trying to sell you.
If the at-fault driver’s insurance company gets back to you with a speedy settlement offer, you may be inclined to simply take the money and get it over with – after all, you are facing mounting medical bills and decreased wages in the interim. If the insurance company suddenly becomes hyper-efficient, it is a good sign that it is attempting to get in front of medical costs and lost wages that you are likely to experience in the future (relative to the type of injuries you have sustained). Once you sign that settlement offer, you end your right to pursue further compensation, which is why you should not do so before consulting with an experienced personal injury attorney.
Another technique commonly employed by insurance companies is making the claims process so lengthy, laborious, and convoluted that accident victims like you simply lose their drive and give up.
These are some of the more effective ways that insurance companies manage to continue making hefty profits. They are also some of the reasons you need a dedicated personal injury attorney on your side. While you attend to the primary task of regaining your health, your personal injury attorney will deftly negotiate with the insurance company on your behalf.