Common Techniques Insurance Companies May Use to Wrongfully Deny an Accident Claim

When filing an injury claim with an insurance company, it can often appear that the claims adjuster is in the business of saying no and will deny your right to compensation entirely. If you’re confused about the process, a personal injury attorney can explain some of the most common unfair delay or denial tactics plaintiffs face.

Taking advantage of a client’s reluctance to use a personal injury lawyer

Often, adjusters can assess when a claimant would prefer not to involve a personal injury attorney. When that happens, an unscrupulous adjuster may offer a low settlement in the hope that the claimant will take the adjuster’s word that it is a fair offer without a lawyer reviewing it. It is imperative to have legal support with you, so that you can be sure that you will always get the best of the deal.

When the claimant does not understand their rights under the insurance policy

Insurance policies contain complex contractual language detailing the rights and responsibilities of the claimant and the insurance company. Adjusters often assume that claimants will not take the time to read and understand their own policies. In some cases, an unpleasant adjuster may deny a claim in bad faith because the claimant did not request something to which they were actually entitled under the policy. The adjuster can face fines and penalties for this, but uninformed claimants often don’t know how to complain.

Tax Considerations

Beware if an adjuster tries to justify a low settlement offer by claiming that it has been reduced because the claimant will not pay taxes on it. This is an unfair attempt by the adjuster to take credit for taxes paid on money earned by the claimant.

Lack of compensation for vehicle depreciation

If the claimant’s car was new and/or an expensive make and model, it may lose significant market value after an accident. Although the vehicle may be repaired to “good as new” according to the adjuster, it will have depreciated after the accident. With the help of an attorney, the claimant can file a claim for that reduction in value.

Structured Settlement Pitfalls

Structured settlements are those that are paid over a period of years, like an annuity, rather than a lump sum. Often the claimant actually loses money in interest earned. As a result, a structured settlement may not be as attractive an option as an insurance adjuster may make it out to be.

Call an experienced personal injury attorney who can help you navigate the insurance claims process if you have been seriously injured in an accident.