Common Tactics Insurance Companies Use to Reduce Liability (And How an Attorney Can Help)

Dealing with insurance companies after an accident can be a challenging and frustrating process. Even when their policyholder is clearly at fault, insurance companies often use a variety of tactics to reduce how much they pay on claims. By understanding these common strategies and knowing how to respond, you can protect your rights and maximize your compensation. And with the help of a skilled personal injury attorney, you can avoid falling victim to these tactics and focus on your recovery.

In this post, we’ll explore the most common tactics insurance companies use to reduce liability and how an attorney can make a difference in getting the compensation you deserve.

Why Do Insurance Companies Try to Minimize Liability?

Financial Incentives to Pay Less

At the end of the day, insurance companies are businesses focused on making a profit. This means that every dollar they don’t pay out in claims is a dollar saved. The less they pay, the more they keep, and this financial incentive drives them to limit payouts wherever possible.

Even when a claim is legitimate, insurers may still look for ways to minimize what they owe, often at the expense of the injured party.

Impact on Accident Victims

When insurance companies successfully reduce their liability, the impact can be devastating for accident victims.

If you’re struggling with medical bills, lost wages, or long-term injuries, a low settlement or denied claim could leave you unable to cover your expenses.

That’s why it’s crucial to understand the tactics they use so you can protect your claim and secure the compensation you need.

Common Strategies Insurance Companies Use to Reduce Payouts

Outright Claim Denial

One of the simplest ways insurance companies reduce their liability is by outright denying your claim.

They may argue that your injuries aren’t covered under the policy or that you failed to file the proper paperwork. Sometimes, they may even send incorrect or confusing forms, hoping you’ll get frustrated and give up.

When this happens, a personal injury attorney can step in, review the denial, and guide you through the appeals process to ensure your rights are protected.

Delaying the Claims Process

Another common tactic is to delay the claims process. Insurance companies may drag their feet, fail to respond promptly, or request additional (and often unnecessary) documentation.

These delays can run down the clock, putting pressure on you to accept a lower settlement or miss important deadlines. If you’re already dealing with medical bills or lost income, these delays can be especially frustrating.

Offering Early, Low Settlements

When it’s clear their policyholder is at fault, insurance companies may offer a quick settlement that seems appealing at first glance.

However, these early offers are often much lower than what your claim is actually worth. Accepting an early settlement can prevent you from seeking additional compensation later, especially if the full extent of your injuries isn’t known.

Shifting Blame to the Victim

In states that follow a comparative fault system, insurance companies may try to shift some or all of the blame onto you.

They might argue that you violated traffic laws, were distracted, or otherwise contributed to the accident. This can reduce the compensation you’re entitled to based on your share of the fault.

Downplaying or Disputing Injuries

Insurance companies often try to downplay the severity of your injuries, arguing that they aren’t as serious as you claim or that they were pre existing conditions unrelated to the accident.

This is a common tactic to reduce how much they owe for medical expenses and other damages.

A skilled attorney can work with medical experts to document the full extent of your injuries and ensure that the insurance company doesn’t minimize their impact on your life.

Discrediting Witnesses or Misinterpreting Policy Language

Insurance companies may also try to discredit witnesses or misinterpret policy language to weaken your claim.

They might question the reliability of witness statements or use complicated policy terms to deny coverage. These tactics can be difficult to navigate without legal help.

How a Personal Injury Attorney Can Protect Your Rights

Navigating the claims process on your own can be overwhelming, especially when insurance companies are using every trick in the book to reduce your compensation.

Comprehensive Case Evaluation

A personal injury attorney will thoroughly evaluate your case, reviewing all evidence, assessing the extent of your damages, and determining the true value of your claim.

This ensures that you have a clear understanding of what you’re entitled to and prepares you for negotiations with the insurance company.

Handling Communication with Insurance Adjusters

Insurance adjusters are trained to ask questions that can undermine your claim or lead you to say something that could be used against you.

By handling all communication with the insurance company, your attorney ensures that nothing is said or done that could harm your case.

Negotiating for a Fair Settlement

Whether through negotiation or litigation, your attorney will fight to ensure you receive fair compensation. They’ll handle the back-and-forth with the insurance company and won’t hesitate to take your case to court if a reasonable settlement can’t be reached.

This shows the insurance company that you’re serious and won’t settle for less than what you deserve.

Litigation Support When Necessary

If the insurance company refuses to offer a fair settlement, your attorney can take your case to court. Having legal representation during litigation increases your chances of winning your case and receiving the compensation you need.

Ensuring Compliance with Statutes of Limitations

Personal injury claims are subject to strict legal deadlines, known as statutes of limitations.

Missing these deadlines can result in losing your right to pursue compensation. An attorney keeps track of all important deadlines and ensures your claim is filed on time.

Steps to Take After an Accident to Strengthen Your Claim

To strengthen your claim after an accident, take these steps:

1. Seek immediate medical attention – Document your injuries and follow your doctor’s advice.
2. Document the accident – Take photos, collect witness contact information, and keep track of any expenses related to the accident.
3. Consult with a personal injury attorney – The sooner you get legal help, the better your chances of securing fair compensation.

Choosing the Right Personal Injury Attorney

Finding the right attorney can make all the difference. Look for an attorney with experience in personal injury cases, a strong track record of success, and a commitment to fighting for their clients.

Don’t hesitate to ask questions during your initial consultation to ensure you’re comfortable with their approach and confident in their ability to handle your case.

How Alvendia, Kelly & Demarest Law Firm Can Help You

At Alvendia, Kelly & Demarest Law Firm, we have a proven record of successfully handling a wide range of insurance claims. Whether you’re dealing with a car accident, a rideshare incident, or a work-related injury, our experienced team is here to help.

Conclusion

Dealing with insurance companies can be tough, but you don’t have to do it alone. By understanding their tactics and working with an experienced personal injury attorney, you can protect your rights and get the compensation you deserve.

If you’ve been injured in an accident, contact Alvendia, Kelly & Demarest Law Firm today for a free consultation. Call us at 504-618-1632 or visit our website to learn how we can help you.