blog home Car Accidents Ways That Car Insurance Companies Try to Ruin Your Claim

Ways That Car Insurance Companies Try to Ruin Your Claim

By Jason Bottlinger on June 15, 2024

Insurance companies make money by collecting more in premiums compared to what’s paid out in claims. To maximize profits, they may be incentivized to deny or reduce claims. This can be achieved by strictly interpreting policy language, doing extensive documentation, and using technicalities to dispute valid insurance claims. By minimizing compensation, companies can maintain a higher profit margin, although this practice can lead to customer dissatisfaction and may lead to regulatory scrutiny.

Being aware of insurance company tactics can allow you to navigate the claims process, ensuring you provide the necessary documentation and challenge unfair denials. This can help you protect your right to fair compensation, but it is difficult to achieve success without legal representation.

Common Tactics Used by Car Insurance Companies

Claimants should arm themselves with the knowledge that insurance companies often use certain tactics to subvert their claims.

Tactics used by car insurance companies include:

  • Denying Claims Without Proper Investigation: Insurance companies sometimes deny claims outright without a thorough review, often providing vague reasons for the denial. They may skip detailed investigations or fail to collect adequate documentation, making it difficult for claimants to challenge the decision.
  • Offering Very Low Settlements: Insurance companies frequently offer initial settlement amounts that are far below the actual cost of repairs or medical expenses. These lowball offers are designed to save the company money, leaving claimants under-compensated and struggling to cover their needs.
  • Misinterpreting Policy Language: Insurers often interpret vague or complex policy terms in a way that favors them and disadvantages the claimant. They use complex legal jargon that can be manipulated to confuse claimants and justify reduced compensation.
  • Using Recorded Statements Against You: Insurance companies may request recorded statements from claimants and then use the statements to misrepresent or twist the claimant’s words. This tactic can undermine the claimant’s case, making it easier for the insurer to deny or reduce the claim.
  • Surveillance and Investigation: Insurance companies sometimes employ private investigators to conduct surveillance on claimants. This surveillance can invade claimants’ privacy and be used to dispute the severity or validity of a claim, potentially leading to reduced compensation.
  • Disputing Medical Evidence: Insurers may challenge the necessity or accuracy of medical treatments and diagnoses provided by claimants’ doctors. They may require claimants to undergo independent medical exams (IMEs), which can be biased and used to contradict the information in a claim.

Why You Should Let Your Lawyer Handle All Communication

Letting your attorney handle all communication with the insurance company is the best way to protect your claim. First, their experience in navigating legal processes ensures that your case follows all necessary procedures, avoiding common pitfalls. They are adept at protecting your rights and interests, ensuring you are not taken advantage of by the insurer.

Lawyers also understand how to provide accurate and strategic communication, preventing misinterpretations or statements that could harm your claim. Lastly, they work to maximize your settlement, using their knowledge and negotiation skills to secure the compensation you deserve, far beyond what you might achieve alone.

Steps to Take If You Suspect Your Insurance Company Is Acting in Bad Faith

Insurance bad faith occurs when an insurance company fails to uphold its legal duty to act fairly and honestly toward its policyholders. Insurance bad faith includes unjustly denying claims, delaying payments, or failing to conduct proper investigations. Such actions violate the implied covenant of good faith and fair dealing inherent in insurance contracts.

If you suspect bad faith acts committed by your insurance provider, take the following steps:

  • Document All Interactions: Keep detailed records of all communications with your insurance company, including emails, letters, phone calls, and in-person meetings. Note dates, times, names of representatives, and summaries of discussions.
  • Seek Legal Advice Immediately: Consult an experienced attorney who specializes in insurance claims and bad faith practices. Your attorney can guide you regarding your rights and the best course of action.
  • Review Your Policy Thoroughly: Carefully review your insurance policy to understand your coverage, exclusions, and the insurer’s obligations. This helps identify any deviations from what is promised in the policy.
  • File a Formal Complaint: If you believe your insurer is acting in bad faith, file a formal complaint with the state insurance department. This can prompt an investigation and put additional pressure on the insurance company.
  • Gather Supporting Evidence: Collect and organize all relevant evidence, including photos, receipts, repair estimates, medical records, and witness statements. This documentation supports your case and strengthens your position.

Contact Our Car Accident Lawyer in Omaha for Legal Guidance

At Bottlinger Law L.L.C., founder Jason Bottlinger has been practicing since 2006. Attorney Jason is a member of the Million and Multi-Million Dollar Advocates Forum and has been named a Top 100 Lawyer by The National Trial Lawyers.

Reach out to Bottlinger Law L.L.C. to learn more about your legal options. Call us at (402) 505-8234 and consult with our experienced Omaha car accident attorney today.

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Posted in: Car Accidents

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