Many drivers rely on good faith and may not expect to be forced to sue their auto insurance company to receive payment for expenses resulting from a car accident. Typically, most just want their car fixed and their medical bills paid.
Unfortunately, the auto insurance attorneys at Michigan Auto Law deal daily with many auto insurance companies that take advantage of their clients by cutting off their benefits without reason or notice. Some insurance companies also put people “under investigation,” the excuse to stop paying all medical bills and lost wages. People are being ignored, threatened, intimidated, and even lied to by their insurance claims adjusters.
The following are common tactics used by many auto insurance companies to avoid or minimize their payments to customers. Tips are included on how you can protect yourself to avoid or minimize problems with your auto insurer.
1. Many restrictions and limitations are hidden in the fine print of your policy
Knowing how to read and understand the fine print of auto insurance policies is not an easy task. Car accident lawyers have seen far too many people lose important benefits because they were unaware of the important hidden filing requirements in their policies. For example, many auto insurance policies have strict notification requirements, such as a 30-day notice for hit-and-run accidents. Many contracts have separate conditions for uninsured/underinsured motorist coverage that require very prompt notice, and insurance companies can change their policy filing requirements at any time. When car accident victims do not timely respond to notification requirements, they can lose their coverage.
How to protect yourself:
Notify your insurance company immediately after any type of accident. Make sure you have your complete auto insurance policy, including any notice of coverage changes from year to year. This may also include brochures or notes that are mailed with renewal statements, reflecting the terms and changes to the policy. Most policies include declarations, conditions, insurance agreements, and exclusions with conditions.
It’s also important to check insurance policies to see if there are benefits that match your own health and disability insurance; and to review any additional coverage (such as uninsured/underinsured motorist coverage). When receiving ongoing medical care for auto accident injuries, having a solid understanding of insurance policies can help ensure that healthcare providers bill appropriately.
If you are confused about your auto insurance policy and have questions, don’t hesitate to contact an auto accident attorney; most will be happy to offer advice and guidance for your protection.
2. Insurance agents don’t always recommend the best coverage
After an auto accident, there can be numerous issues and challenges navigating health insurance plans, managed care plans, retirement plans like ERISA, and coordinated/uncoordinated policies. Additionally, insurance agents can avoid mentioning important coverage options and applicable discounts due to missed payments or lower premiums that reduce their commissions.
Many people choose to have more insurance coverage so that they are not personally liable if they cause a serious car accident. However, some people only pay the minimum insurance premium to renew their registration each year and then let the auto insurance lapse. Without an uninsured or underinsured motorist policy, a driver or their family members seriously injured by an uninsured motorist will have no other source of legal recovery for their injuries than to file a lawsuit against the uninsured motorist for their personal property. Most people do not have enough personal net worth to compensate someone they have seriously injured.
How to protect yourself:
If you are injured in a car accident, contact an experienced car accident attorney who is best qualified to provide guidance on where insurance is primary and who will pay for medical expenses incurred after an accident.
If you have ERISA health insurance, primary or uncoordinated coverage is the safe call. A person insured with ERISA and co-ordinated insurance may end up recovering nothing for their pain and suffering in the event of a car accident.
Check your insurance policy for uninsured or underinsured motorist coverage of at least $100,000 per person and $300,000 per accident. If this type of coverage is missing, contact your insurance company to add it; the cost is minimal and highly recommended to protect you and your family.
Raising your deductibles to at least $500 or more can also lower your auto insurance premiums by 15 to 40 percent. Consider dropping collision and/or comprehensive coverage on older cars. If your car is worth less than 10 times the premium, removing those coverages can save you money, unless you still owe money on the car. Finally, if there is any reduction in the number of miles you drive annually, contact your insurance company for low mileage discount quotes.
3. Accident Settlement Offers Are Always Too Low
Imagine you’ve just suffered devastating injuries from a car accident and are now recovering at home, in pain and worried about how you’ll pay your bills. An insurance agent knocks on his door with a check for $100,000 for his accident. With the emotional and physical trauma that follows a car or truck accident, a lot of money sounds great, and some victims are quick to accept the first settlement offer. However, determining the value of an auto accident case goes far beyond a simple calculation of the type of injury, future expenses not covered by no-fault insurance, and the wrongdoer’s policy limit. Offering a settlement is essentially a backdoor approach by insurance companies to save litigation costs at the expense of an accident victim’s right to full recovery.
How to protect yourself:
It never hurts to call a car accident lawyer and ask for advice. Many lawyers can explain accident law, what you are entitled to, and make sure your own insurance company pays everything you are supposed to pay, with no fees or obligations.
4. Press releases and recorded statements are pushed early on to overwhelm accident victims
Many victims rush to sign the adjusters’ documents without having the language reviewed by a car accident attorney, believing these are just basic accident verifications. Therefore, they may lose their right to sue a negligent driver for injuries related to an accident. Claims adjusters often attempt to obtain recorded statements early, with the goal of minimizing pain and injury to the victim for later use in court. Even vehicle damage releases can contain unrelated language that can jeopardize your other claims.
How to protect yourself:
Never give statements to an accident claims adjuster and never sign a release or allow the adjuster to look at the damage to the car. Simply tell the adjuster that you need to review the paperwork with his attorney and he will contact them with his response. No matter how desperate you feel after suffering the financial burden of medical bills, lost wages, and disabling pain, engaging a car accident attorney will ensure that your rights are protected. Keep in mind that the claims adjuster works for the insurance company and has the insurance company’s best interest in mind, not the injured victim’s.
5. The standard practice is to deny or delay payment of claims
Most people who are injured in a car accident call their auto insurance company to find out what to do next. They assume that when they follow the process, they will receive fair and timely compensation for injuries resulting from the car accident. After all, they paid for car insurance for that reason: to be covered in the event of a car accident.
However, many insurance companies engage in common delay tactics including denying claims, not returning calls, putting people on hold for long periods of time, requiring the victim to repeatedly collect records, and passing it on from one adjuster to another. Soon, the financial burden of time off work and mounting medical bills lead unsuspecting car accident victims to contact an attorney. Or even worse, it makes them desperate enough to accept an extremely low settlement offer, limiting any future recovery of damages.
How to protect yourself:
If you are experiencing these typical delay tactics, contact an auto accident lawyer who can help you process your claim and the benefits to which you are entitled under your state law.
Bottom line:
If your car accident involves injury to you and/or your family (even seemingly minor injuries), consult a car accident attorney as soon as possible. Not only will you better understand what benefits you are entitled to, but you will have peace of mind knowing that you received the full value of the benefits and compensation available to injured drivers.