You and your family have a lot on your plate after a catastrophic car accident. While you recover from debilitating injuries, you and your family deal with significant emotional and financial stress while you work to get back on your feet.
All this stress can compound if you discover that the insurance company has denied your claim for compensation.
When could this happen?
There are a few reasons that insurance companies might deny your claim, including:
- No record of medical care: If you refuse emergency medical care after the crash or delay seeking treatment for injuries, insurance companies might deny the claim. In their eyes, avoiding immediate medical treatment could indicate that you suffered no injury.
- Policy information: Sometimes, the insurance policy itself could lead to a denied claim. For example, the negligent driver’s auto insurance policy might have expired, leaving them uninsured. Or, they have no-fault insurance, since Pennsylvania is a no-fault insurance state.
- Delay in providing information: In Pennsylvania, you have two years to file a personal injury claim. However, insurance companies might have different requirements, especially regarding when you must inform them about the accident.
Some insurance companies might deny claims in hopes that you will not pursue your just compensation. Remember, many insurance companies want to save money.
What can you do?
One of the most important things you can do proactively after an accident is to create a file of the details and information about the accident. This file should include:
- A written report of what you remember;
- Photos of the accident, damage and injuries;
- A copy of the police report;
- A copy of your medical records;
- Insurance information, such as the policy information and claim number; and
- Receipts for all the expenses paid after the accident, such as medical bills and car repairs.
It may sound tedious, but it is critical. If you have this information ready when an insurance company denies your claim, you can challenge the denial confidently.
A denial of your claim does not mean you cannot recover your compensation, but it can increase your stress unduly. If your valid claim is denied, then the attorneys at McDonald At Law can help you. Attorney Michael McDonald is the only Nationally Board Certified Expert certified by the National Board of Trial Advocacy in Lancaster County who exclusively represents accident victims. He has obtained some of the highest trial verdicts and arbitration awards in the history of Lancaster County.
You can learn more by contacting us and scheduling your free initial consultation at our Lancaster office.
Reaching a settlement with your insurance provider
If you’ve been in a serious accident where your car was totaled or you suffered an injury, the accident is just the first in a series of challenges. Insurance companies are notorious for questioning claims and offering low settlements. What should you do if you don’t like their offer?
Auto insurance providers work with claims all day every day and are familiar with the cost of a crash or injury, while you at home are not. It’s an uneven playing field and they know this. An insurance company makes their offer in response to what a lawsuit will cost them, then fitting that number into your situation and your perceived skill at negotiation.
Take these steps before considering an offer:
- Have your own figure in mind, both a maximum and a minimum acceptable offer.
- Be prepared to negotiate. Do not take the first offer.
- Have your argument prepared. Focus on documentation and your strongest points instead of a laundry list of details.
How negotiation typically works
The insurance company will present an offer, followed by an explanation. In emphasizing your own points and damages, be reasonable and work within range of the insurer’s offer. If it feels unreasonable, you’ll want to negotiate in writing with a “demand letter,” which details your experience and expected compensation.
From here, a claim goes back and forth as the sides reach a settlement somewhere in the middle, typically after a few exchanges. Most cases reach a settlement and, as long as it feels fair in representation of your costs and damages, this is a normal process after a car accident. If a case goes to court, the negotiation is out of your hands and turned over to a jury or judge.
Where experience can help
Like the auto insurers, personal injury lawyers are exposed to lawsuit costs on a daily basis. However, they represent you, whereas an insurance company is working to secure their own bottom line, so working with a legal professional is a way to level the playing field. Demand letters and other negotiation tactics can be found online but a trusted attorney can write a professional and point by point letter in your favor as well as handle negotiations to make sure you get the coverage you and the at-fault driver have been paying toward.
Why you shouldn’t talk to the insurance company alone
If it’s clear after a car accident, or any type of accident, that you were not at fault, you can expect the insurance company for the negligent driver or party to contact you and offer you a settlement.
You should be wary of this offer. This settlement offer will often be far lower than what you deserve. This is why it is so important that you do not talk to the insurance company alone.
One way in which they will attempt to limit the amount of compensation they need to pay you – or have grounds for denying your claim entirely – is by having you give a recorded statement. Even if you’ve recounted the story of your accident countless times already to the police, your doctor and your own insurance company, giving a recorded statement to the negligent party’s insurance company is a risky move. The adjusters:
- Will look for any inconsistencies between the statement you give them and the statements you have given to others to question your credibility and claim that you lied. This is difficult to avoid, because no matter how often people tell the same story, it is likely that details will change. This becomes more likely the further away from the accident it gets.
- Will ask questions designed to trick you and get you to answer their questions in a way that absolves their client of fault or may even make it sound like you are admitting fault in the accident.
It’s human nature to never tell a story the exact same way twice. By giving a recorded statement to the insurance company, you could be doing serious damage to your claim. Instead, with an experienced personal injury attorney in your corner, you will greatly increase your chances of recovering the compensation that you need to truly account for your losses.
An attorney can advise you about when to talk and when your attorney should do the negotiating for you. Remember, insurance companies count on you not knowing the law or your rights. However, an experienced personal injury trial attorney will be able to protect your rights and options.
What does your insurance company know about you?
After an accident, do you ever wonder how insurance companies come up with the amounts that they offer for settlements?
This blog previously discussed why you should avoid talking about your accident on social media, because insurance adjusters will be scrutinizing those posts to reduce their costs. While this is sound advice, there is something else you should think about if you think your insurance provider or the negligent party’s insurance company is really “on your side.”
Just like Facebook and Google harvest mass amounts of data to determine what ads to show you, insurance companies are likely collecting much, much more data on you that is much more personal.
Insurance companies know more than the authorities
Insurance companies – property insurers, health insurers, life insurers and motor vehicle insurers alike – are all likely collecting vast amounts of data about you, and they won’t talk about how they get it or what they use it for. However, insurers are using new technology and your Internet-connected devices (phones, tablets, cars, etc.) to collect information like your:
- Credit reports
- Home’s value
- Education background
- Health status
- Driving habits
- Spending habits
Additionally, insurers are using artificial intelligence (AI) tools to use your data to determine what policies you are likely to purchase. They can also use it to determine if you are more likely to make bad decisions than other drivers, driving up your premiums.
Consumer advocates warn that your insurer’s in-depth knowledge of your financial situation can also lead to low-ball settlements. For example, if your insurer knows you need the money, they are more likely to offer you a lower settlement.
You need an advocate in your corner
There is never a wrong time to hear the reminder that insurance companies make money from people paying their premiums and then limiting the money they pay out for claims. That is why you should never trust that an insurer, even your own, is on your side.
The only true advocate you can have in your corner when filing a claim or seeking compensation through a personal injury lawsuit is an attorney who is obligated to fight for your best interests. An experienced attorney will be able to push back against low-ball settlement offers and put you in a better position to recover the compensation that you truly deserve.
Three mistakes people make when dealing with insurance companies
The process for dealing with a traffic accident can be confusing, especially if you’ve never been in the situation before. For most people, navigating the insurance process is the most confusing and difficult part. Here are three common mistakes that you should avoid if you are going through the process:
1. Apologizing
While many know that they should not apologize to others involved directly after an accident in order to avoid admitting guilt, they may not have the same thought when it comes to talking with the insurance company afterwards. It may be very natural for you—when talking to an insurance adjustor over the phone—to causally apologize for the incident. You may not even really be expressing remorse, but even a social nicety made in passing can be taken as an admission of guilt by the insurance company. Any admission of guilt can be then used by the company to try and reduce the legitimacy of your claim.
2. Talking to the other driver’s insurance company
While you are obligated to inform your insurance company of your accident, you are not obligated to talk to the other driver’s insurance company. In general, speaking directly to the other party’s insurance company is not ideal. You can have your insurance representative or attorney speak with the insurance companies on your behalf.
However, if you do speak with another insurance company, keep in mind that the primary goal for their adjustor is to reduce the quality of your claim and shift blame from their client to you. Thus, you should:
- Decline to have your conversation recorded
- Avoid admitting any blame
- Avoid minimizing your injuries
- Decline to volunteer additional information
- Avoid making statements that are not objective facts
3. Settling too quickly
Always remember that insurance companies, even your own, are businesses that are looking to maximize their profits. Because of this, it is in the companies’ interest to settle claims as quickly and as cheaply as possible. If an insurance company can get away with saving a few thousand dollars on your claim, they will take advantage.
Even if you avoid all the common pitfalls associated with dealing with insurance companies, the first settlement they present to you will usually not be the best deal that you could get.
How an attorney can help
Although your insurance company may have an agent represents you, they may not have your best interests at heart when dealing with your case. If you’ve suffered from an automobile accident, you should have a professional representing your best interests. An attorney can deal with the insurance company on your behalf and get you the compensation that adequately addresses any suffering you’ve endured.
Are insurance companies on your side after a crash?
If you are injured by a reckless driver who ran a red light on Pennsylvania roads, you think that the last thing you have to worry about is paying for the damages they caused. After all, you pay your auto insurance premiums each month to make sure you get coverage in situations just like this.
Regardless of whether you have full or limited tort insurance, you deserve compensation after suffering a serious injury in a car accident. Your insurance company should support you. Unfortunately, insurance companies are not always on your side.
They will try to avoid paying you
Above all, most insurance companies are businesses. That means one of their primary goals is to minimize their own expenses and increase their profit. Therefore, they rarely want to pay you the compensation you deserve after an accident.
Insurance companies and adjusters will work to either diminish or deny your claim altogether – even if it is valid.
How can they do this?
You might wonder: is this legal? Unfortunately, insurance companies often use several undermining tactics to deny claims that are, in fact, legal. For example, they might:
- Call after you report the accident and try to get a recorded statement before you know the extent of your injuries;
- Delay contacting you in hopes you will become frustrated and either accept a low settlement offer or give up on your claim; and
- Offer a settlement that is far below what your claim is worth at first.
And that is only to name a few of the tactics they might use to deny your claim. Recent reports also found that life insurance companies even check social media accounts and posts for evidence to calculate premiums. Auto insurance companies could very well do the same thing to reduce your claim.
Is there reason to worry?
Hearing that the insurance companies are not always on your side can be both stressful and frightening – especially after suffering a serious injury in a car accident.
However, you should not have to worry. As long as you are aware of these tactics and understand your rights, you have options to recover the compensation you deserve. It is often beneficial to speak with an experienced personal injury attorney to understand all of the options available to you after an accident.
Contact A Skilled Personal Injury Attorney
At McDonald At Law, our knowledgeable team of personal injury lawyers fight to get injured people in Philadelphia, South Central and throughout Southeastern Pennsylvania their deserved compensation. In addition to his decades of experience, Attorney Michael McDonald is the only Lancaster County lawyer who is certified by the National Board for Trial Advocacy in Lancaster County. He will fight on your behalf and hold the negligent parties and their insurance providers accountable.
Reaching an Injury Settlement with Your Insurance Provider
After suffering a traumatic accident, filing an insurance claim may be the last thing on your mind. However, filing a personal injury claim is crucial to get coverage or reimbursement for medical bills, property damage, and other accident-related expenses.
If you are not at fault, you will file a claim with your insurance company, and they will take care of your medical bills and other damages while pursuing recovery of the expenses from the other party’s insurer. If you were at fault, your insurance company would need to assess the damages and reimburse you for your medical costs and property loss.
It is important to note that an insurance company’s job is to pay as little as possible within the law. Insurance companies may offer a settlement amount that does not cover all of the damages from the accident, and they never compensate you for emotional distress or pain and suffering.
An insurance company wants to be in charge of the negotiation process. Most insurance companies bank on accident victims’ lack of understanding about the ins and outs of the insurance settlement process, so they can negotiate a settlement value that is less than you deserve.
Negotiating with an insurance company is tricky, so hiring a personal injury lawyer is necessary to receive the compensation you deserve. Personal injury attorneys can view your accident’s evidence and fight for a fair settlement.
Having legal representation with a reputation for taking cases to trial forces the insurance company to offer a fair settlement. If they do not provide a fair settlement, some attorneys will take them to trial, and their total monetary output will go far beyond what they would have had to pay if they had settled fairly. Attorneys that are known for taking cases to trial receive much higher settlement values than those that do not. Choose your personal injury lawyer based on their credentials to ensure you receive the highest compensation.
How Do Insurance Companies Negotiate Settlements?
After an accident, the insurance company’s job is to contact accident victims to collect facts and information related to the claim.
An insurance provider will contact you to give you a settlement offer and explain what the settlement covers. Several factors determine settlement value, including the severity of injury sustained, fault of the other driver or car manufacturer, and more evidence from the accident scene.
Attorneys that do not go to trial rarely see the highest settlement values because insurance companies know they will settle rather than go to trial.
Investigation
An insurance adjuster will collect information about your specific accident claim to determine the cause and level of damage.
In an initial investigation, an insurance company is trying to collect all of the necessary information and evidence they need to determine a settlement amount. They will assess evidence from the police report, witness statements, and accident photos in their investigation.
Suppose any injuries sustained in the car accident require medical treatment. In that case, the insurance company will ask for copies of medical bills for treatment you have already received and a medical assessment from a health practitioner to determine the scope of physical harm. Seeking medical care if you have suffered physical or emotional damage is essential. If you seek medical or emotional damages in your settlement, these medical records are required.
Initial Offer
Typically, an insurance company has a limit on the compensation they can pay you. Based on the policies of the specific insurance company, they may have to adhere to a particular settlement value.
An insurance adjuster uses the information gathered from the investigation to estimate an appropriate settlement amount. Typically, the insurance company uses software to generate this settlement amount.
This initial offer is generally a minimum settlement figure the insurance company is willing to pay based on the investigation. Accepting the initial offer is not recommended often since this is generally the minimum compensation you deserve.
Demands
Meet with a personal injury attorney to determine reasonable demands and move forward with settlement negotiations.
The demand letter helps to justify your desired settlement offer. The right personal injury attorney will demand the maximum compensation you deserve based on the facts of the case. Demanding the maximum amount out of the gate allows room to negotiate a fair settlement.
What to include in a demand letter
The purpose of a demand letter is to negotiate with an insurance company to get maximum compensation for accident damages. Use appropriate and professional language in your letter to receive respect and consideration from the insurance company. There are several key components to include in your demand letter.
medical costs
Include anticipated and actual medical costs in your letter. By including the true value of your medical care and expected medical expenses, an insurance company can see how much your injuries from the accident will cost. An attorney can guide you through this process by helping to assess your injuries and determine expected costs. Lawyers use a multiplier method when calculating medical expenses based on specific injuries and records. They may also have you evaluated by a physician to ensure they have included all your injuries and the extent of those injuries in their calculations.
lost wages
Include specific lost wages due to injury. If you are unable to work as a result of your injury or have missed a significant amount of work due to medical visits, you may be able to receive insurance coverage. Your employer should be able to provide the details of how many days you were unable to work and the total amount of your lost wages on their company letterhead. This letter will function as official documentation for your records.
pain and suffering
Insurance companies do not typically cover pain and suffering automatically. You will need an attorney and the threat of a lawsuit to receive fair compensation for any pain and suffering you experienced due to the accident. Pain and suffering compensation can include physical injury, emotional damage, ongoing health issues, and other factors. An attorney can assist you in finding an appropriate estimate for pain and suffering.
property damage
Include any property damage estimates as a result of the accident. If you have vehicle damage associated with the accident, include repair estimates from an auto-repair company. Any other property loss can be documented through similar repair estimates, or you can meet with a lawyer to determine an appropriate compensation amount.
Negotiation Process
Negotiating a reasonable offer can take a while since insurance companies want to pay as little as possible.
Independent mediators may be required to reach a compromise. These mediators can determine how much compensation is appropriate from an unbiased lens. The insurance company may also request an independent medical examination from a healthcare provider.
Many personal injury claims can be negotiated outside of court; however, there are some instances where a trial may be necessary. If an insurance company is unwilling to negotiate or provide a fair offer, it may be time to seek legal action.
Tips for Negotiating with Insurance Company
Consult legal help early on to assist with every stage of the process. An attorney can assess your personal injury claim and determine the appropriate next steps for you.
Be prepared to negotiate by having a minimum amount you are willing to accept. After consulting with an attorney about how much compensation you deserve, you can determine this minimum amount and negotiate confidently.
Always have your argument prepared. A car insurance company has been through the legal process countless times and has insurance adjusters experienced in negotiation. Having an attorney who is just as experienced can enhance your argument. Focus on documentation and your strongest points instead of a laundry list of details.
How a Personal Injury Lawyer Can Help
Attorney McDonald is in the top 1% of board-certified lawyers in Pennsylvania by the National Trial Board of Advocacy and has been annually recognized nationally as one of the Top 100 Trial Lawyers in the United States since 2011. Awarded a PA Super Lawyers recognition for the past ten years, McDonald At Law has extensive experience maximizing client compensation.
McDonald At Law has 30 years of civil trial experience and a track record of getting their clients the maximum compensation they deserve. An attorney with little-to-no trial experience will obtain less compensation for clients because the insurance company knows they will not be going to trial.
At McDonald At Law, we make it clear to the insurance companies that we are willing to fight for our clients because when they do not offer us the top value available, we take them to trial and let the judge and jury decide. You can schedule a free consultation with a McDonald At Law attorney to assess your claim and take action toward receiving the compensation you deserve.
Call the firm’s Lancaster office now at 717-899-1907 or send us an email.