How Insurance Companies Lowball Car Accident Victims
Auto accidents are disturbing events, and while discovering an attorney and an insurance adjuster is the first response that comes to mind, there are situations in-between that may be unforeseen. We may subscribe to the notion of insurance while knowing nothing more than, if/when we need it, a higher power should visit justice upon the wrongdoer with the goal of replacing what was taken as best as possible. But insurance payouts all too frequently fail to deliver what they promise to lowballing insurance tactics.
What Is Lowballing in Insurance Claims?
Despite being in the business of risk management and support, insurance companies often participate in efforts to exert profit over those injured. One of these strategies is called lowballing, a tactic that allows the insurance company to pay next to nothing to victims of accidents which, typically, end up getting completely shortchanged when it comes time to get a settlement for their injuries and trauma. These are common lowballing insurance tactics.
The Claims Process and Initial Lowball Attempts
Right after an accident, the first thing many people do is file a claim with their insurance company. This is where things often start to get tricky. An insurance adjuster might try to make the accident seem less serious than it is. They could downplay the injuries and the damage to the car. Plus, they sometimes argue that the victim’s actions contributed to the accident or that the injuries were already there before the accident happened. This way, they can avoid paying a large settlement. For more information on how to navigate this process, refer to our guide on Steps to Take After a Car Accident.
Tactics to Undervalue Claims
Insurance companies can hold up to evidence of injuries well-documented and medically supported, but they still will find a way to devalue the claim. This can involve trying to offer a speedy settlement before the victim has had time to understand the full scope of injuries, trying to force the victim to take whatever insultingly low offer they put forth, or dragging the process out for so long that the claimant gives up out of sheer exhaustion.
Algorithms Trump Personal Economics
Also, insurance companies usually use sophisticated algorithms and actuarial calculations to evaluate the worth of a claim, as opposed to taking into account the specific facts of a case. Going along with the cookie-cutter method, this completely overlooks and underestimates the effect of the accident on the victim’s life—from medical bills and lost wages to pain and suffering.
Victim Effects of Lowballing
When accident victims receive an inadequate settlement from their insurance companies, it can lead to significant financial distress and frustration, as they struggle to pay for medical bills, rehabilitation, and other accident-related expenses. This may even leave people facing financial ruin or unable to pay for needed health care.
How to Fight Lowball Offers
Then, what could we do about these situations? Knowledge here is power – if accident victims know what to expect from insurance companies and their lowballing insurance tactics, they can fight for themselves to be treated fairly. Experienced personal injury attorneys can even out the playing field by providing representation for victims to have someone who can fight back against those insurance company tricks on their behalf. To understand the importance of legal representation, see our post on How to Choose the Right Personal Injury Attorney.
Representation and Advocacy
The attorney can also be more helpful in ensuring that an insurance claim turns out favorably if the attorney has experience in that area. A personal injury attorney deals with the most common tactics of insurance companies and effectively handles them. They can gather evidence, speak with adjusters, and where necessary, file a lawsuit to obtain the compensation their clients need.
Regulatory Steps and Legal Revisions
In addition, regulatory intervention and legal reforms should be required to monitor insurance companies and contribute to the performance of obligations towards policyholders. With a little more oversight, and a penalty for those who engage in bad faith, lawmakers can easily protect the rights of accident victims and make the insurance system more fair and transparent. For more on understanding the legal landscape, check our detailed overview on Understanding Personal Injury Law.
For more on understanding the legal landscape and tackling lowballing insurance tactics, check our detailed overview on Understanding Personal Injury Law.
Conclusion
Lowballing by insurance companies is a big problem for those who are trying to get the fair car crash settlement they deserve. Combating holdback schemes is key so that fraud victims can secure the financial settlement without any of the headaches, offering a glimpse of hope for a brighter future in the legal system.
