How Do Insurance Companies Keep Settlements Low?

Insurance companies have a vested interest in keeping car accident settlements as low as possible in order to minimize their financial losses. Here are some common tactics that insurance companies use to keep settlements low:

• Quick Settlement Offers: Insurance companies often make a quick settlement offer to accident victims soon after an accident, before the full extent of their injuries and damages is known. They may pressure the victim to accept the offer by suggesting that it is a “fair” offer, when in fact it may be significantly lower than what the victim is entitled to.
• Disputing Liability: Insurance companies may dispute liability for the accident in order to shift some or all of the blame to the victim. By doing so, they can reduce the amount of compensation they are required to pay.
• Questioning the Extent of Injuries: Insurance companies may question the extent of the victim’s injuries, or suggest that the injuries were pre-existing or unrelated to the accident. By doing so, they can reduce the amount of compensation they are required to pay for medical expenses and other damages.
• Delaying the Claims Process: Insurance companies may delay the claims process by requesting additional documentation or information, or by simply dragging out the negotiation process. By doing so, they can wear down the victim and reduce their willingness to pursue a higher settlement.
• Using Precedent and Comparative Fault: Insurance companies may use precedent and comparative fault to argue that the amount of compensation being requested is excessive or outside the norm for similar cases. This can reduce the amount of compensation that the victim is able to recover.

It’s important to remember that insurance companies are for-profit businesses, and their goal is to minimize their financial losses. If you are involved in a car accident, it’s important to seek the guidance of an experienced personal injury attorney who can help you navigate the claims process, negotiate with insurance companies, and ensure that your legal rights are protected. Call WeierLaw today to assist you with this frustrating and unfair process.