Auto insurance companies are definitely in business to generate a profit. Not only are insurance premiums often very expensive, they also have standard company policies when handling claims that can result in significant obstacles for the claimant. Issues such as demanding additional documentation and presenting technicalities concerning the claims are common for companies that are difficult when processing submissions. These are termed “bad faith” companies in the legal industry, and many attorneys have dealt with them regularly. However, the typical claimant is not always aware of the problems the respondent insurance company can present in an effort to get the claimant to go away, or at least accept a substantially lower settlement offer than the claim could carry. When an insurance company is being difficult, it is assuredly a red flag to contact a car accident attorney immediately.
Negotiating with the Insurance Claims Adjuster
It is important to retain all documentation associated with an auto accident. This list includes medical bills, travel expenses to and from the doctors, pay stubs from work prior to the accident, and any other generated expense. These are special damages, also known as economic compensatory damages, and they can be calculated in specific dollar amounts. This sets the base for what will be included as non-economic compensatory damages for pain-and-suffering resulting from any accident injuries. The general damage component of the claim is what the claims adjuster will want to avoid or reduce, and they can be particularly difficult when they think the claimant will not retain legal counsel.
Comparative Negligence Denials
Many times auto insurance adjusters will deny a claim based on comparative fault, especially in Texas where modified comparative negligence is used. The bar for financial recovery is 51% in Texas, which encourages claims agents to deny or significantly reduce settlement offers when a claim is submitted. This is actually speculation on the part of the insurance company representative, as official comparative negligence percentages are determined by a jury if a case goes to court. Details can make a major difference in the final outcome of a case, and many adjusters will want a high-value claim determined in court in many instances. However, when fault is obvious, it is to their benefit to settle the case quickly in hopes of a lowered settlement.
Understanding Bad Faith
There are specific rules auto insurance companies must follow when an accident claim is filed. The first is investigating the accident in a timely fashion for a quick response to the claim. Bad faith insurance companies will look for any technicality they can uncover in the investigation, typically attempt to overstate a defense or use it to their own benefit instead of the claimants. Many times they also do not reveal the full value of the claim to the injured victim. These are both examples of what could be seen by the court as bad faith, and an experienced car accident attorney will have the legal knowledge to craft a case for bad faith in addition to the original claim when certain facts are present. Experienced personal injury attorneys understand when auto insurance companies are attempting to violate the rules of claims handling, and they can position your claim for maximum award when bad faith is apparent.
Contact the Thrive Agency
Never accept a low offer from an auto insurance claims agent without first discussing the terms and circumstances surrounding the claim with a car accident attorney like the legal professionals at The Law Offices of David Kohm. You only have one opportunity for financial recovery, and it is vital to make it count for as much compensation as possible. Call our law offices today at any of our convenient locations and get a free consultation.
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