In a perfect world, you could file an insurance claim after an auto accident and count on your claim being paid promptly and entirely. However, as you may already have discovered, insurance companies tend to prioritize their own financial interests, and that often means they’ll do whatever they can to deny or underpay valid claims.
There’s no way to guarantee that your claim will be paid in full, but when you understand how insurers operate, you’ll be better prepared to pursue the compensation you deserve. Here’s a look at some of the things insurers don’t want you to know about auto insurance claims.
Early Settlement Offers Are Often Inadequate
Many policyholders who file insurance claims after a car accident are worried that their claims won’t be approved at all. So when the insurance company gets in touch with a settlement offer, they might accept it out of a sense of sheer relief without looking closely at the amount.
If the insurer can’t find a reason to deny your claim outright, it will typically start with a lowball offer to see if you’ll take it. Don’t fall for this trick. If you know your claim is worth more than the insurer is offering, keep negotiating.
Insurance Adjusters Work for the Insurer, Not for You
When you file an insurance claim after a motor vehicle accident, the insurance company assigns an adjuster to your case. The adjuster’s job is to investigate your claim and determine whether you’ve valued it accurately.
In theory, adjusters are supposed to be unbiased. However, because the insurance adjuster works for your insurance company, they’ll likely make decisions that benefit their employer, not you.
Recorded Statements Can Be Used Against You
After an accident, your insurance company may ask you to make a recorded statement. This typically isn’t a good idea. Insurance companies are infamous for twisting even innocent statements to undermine the validity of a claim.
Delaying or Denying Claims Is Common
If your insurance provider is taking an unreasonably long time to process your claim, there’s a chance that it’s simply dealing with an unusually high claim volume. It’s much more likely, however, that it’s deliberately using bad-faith insurance tactics.
Insurance companies will sometimes try to delay or unreasonably deny claims to wear policyholders down and convince them to accept inadequate settlement offers. Even if your insurer eventually pays your claim, holding onto its money for a longer period allows it to generate more interest, which translates to greater profits.
You Have the Right to Legal Representation
There’s no rule that says you have to have an attorney to negotiate with your insurance company on your behalf. However, when you have legal representation, it levels the playing field and increases your likelihood of securing a fair settlement.
Insurance companies also tend to be more willing to negotiate with attorneys than with individual policyholders. If a customer can’t negotiate the settlement they want, they’ll likely drop the issue. However, if the insurer refuses to negotiate with an attorney, there’s a good chance the attorney will file a lawsuit.
Thorough Documentation Makes It Harder to Reject Your Claim
When it comes to filing insurance claims for auto accidents, having more documentation is always better. If you can substantiate your claim with strong evidence, your insurance company may have trouble finding a reason to deny it.
Even if the insurer denies your claim, your evidence can prove helpful during the appeals process (and if you decide to file a complaint with a regulatory agency).
A Statute of Limitations Applies
Most insurance policies give policyholders a specific timeline for filing claims. However, there’s another timeline you should be mindful of: the statute of limitations. This is essentially a legal deadline for filing a lawsuit.
In Texas, you have two years from the date of your accident to file a lawsuit. This statute of limitations applies to both car accidents and personal injury lawsuits in general.
Some insurance companies will purposefully try to drag out the claims process so the policyholder misses the deadline. If the statute of limitations passes, you’ll lose the right to take legal action against the at-fault party.
FAQ
How Long Does It Take to Resolve a Car Insurance Claim?
Many different factors can influence the timeline of a claim. Straightforward incidents can often be resolved within months, while complex claims and those involving serious injury or wrongful death may take a year or more.
What if the Insurance Company Has Rejected My Claim?
If your insurer has unfairly denied your claim, you have the right to file an appeal. Our team can help you put together a strong, well-documented appeal.
What if I Was Hit by an Uninsured Driver?
If the driver who hit you had no insurance, the best course of action is usually to file a claim with your own uninsured/underinsured motorist coverage. If the at-fault driver has significant assets, you may also be able to sue them directly.
Need Help With an Auto Accident Claim?
If your insurance company is attempting to unfairly deny or underpay your claim, it might be time to talk to a lawyer. You need someone who can see through your insurer’s dishonest tactics. Ramsey Law Group is here to help.
We have more than 25 years of experience advocating for injury victims in Houston and throughout Texas. Our proven auto accident attorneys have seen just about every bad-faith insurance tactic there is, and our negotiation tactics get results.
If you’re having trouble with your insurance company, contact us to set up a free consultation today.