Why You Should Always Challenge Insurance Companies After a Car Accident

After a car accident, dealing with insurance companies is inevitable. However, accepting the initial settlement offer without question can often result in a lower-than-expected payout that doesn’t come close to covering all damages and injuries. 

Insurance companies are, after all, corporations focused on maximizing. 

Understanding Insurance Companies and Their Motives

It’s important to understand that insurance companies, like any other business, are out to make a profit. This means their goal is to pay out as little as possible on claims. 

Insurance companies generate profits from premiums paid by folks like you, their customers. But that’s not where the big money comes from. Instead, they generate the lion’s share of their annual revenue from reinvesting the money they’re holding into other profit-generating assets. In other words, they take the money you pay them every month and put it into stocks, bonds, and other funds that grow the money. 

When you understand how insurance companies generate their fat profits, it gives you a better idea of why they don’t want to pay out more than necessary. At the end of the day, it isn’t just about the dollar amount they’re paying out – it’s about the fact that every dollar they pay out is one dollar less that they can invest in appreciating investments.

When you’re dealing with them after a car accident, you’re going up against experts who are well-versed in minimizing payouts to protect their bottom line. (And they have a whole arsenal of tactics designed to undervalue your claim and help them accomplish this goal.) Tried and true tactics include downplaying the extent of your injuries, arguing that your car was worth less than it was, or even saying that the accident was partly your fault.

Now, you might be thinking, “But isn’t the insurance company supposed to help me?” In an ideal world, yes. But remember, their primary allegiance is to their bottom line, not you. This is why accepting their first offer without question can be a big mistake. It’s often much lower than what you’re entitled to, and once you accept it, there’s no going back. You could end up paying out of pocket for repairs, medical bills, and other expenses the settlement doesn’t fully cover.

Here’s where it gets interesting. When you challenge an insurance company’s initial offer, you’re not just fighting for a fairer settlement. You’re also sending a message that you won’t be taken advantage of. This doesn’t mean you have to go into battle mode. It’s more about being informed, standing firm, and advocating for yourself. It’s about making sure you get what you need to recover fully from the accident, both physically and financially. How do you do this? Let’s explore further. 

How to Stand Your Ground With Insurance Companies

When it comes to fighting insurance companies, you don’t need to do everything on your own. Here’s a three-step process for fighting back with force:

Hire an Attorney

It’s highly recommended that you don’t attempt to go through this process of dealing with insurance companies on your own. Rarely does this approach end well. 

“When an insurance company receives a claim for an injury, they do not simply roll over and pay out any amount that the injured person wants,” Parham Smith & Archenhold LLC explains. “These companies have the resources necessary to look out for their best interests financially, which is why any injured individual should have the same level of legal representation.”

Hire an attorney who specializes in car accidents and injuries. You want someone who goes toe-to-toe with these companies on a daily basis and isn’t afraid to challenge them when they’re being unfair. 

Negotiate

A good attorney will have a clear idea of how much your case is worth and will negotiate tactfully based on this figure. Discuss these numbers with your lawyer and have open conversations with your representative about the negotiation strategies you’ll be using. Under no circumstances should you settle for the first offer the insurance companies toss your way.

Let Your Lawyer Work

While it’s a good idea to stay informed and have regular conversations with your lawyer, don’t be afraid to let them work. In fact, it’s recommended. Assuming you’ve done your due diligence and hired a good lawyer, you should sit back and let them take it from here.

Don’t Roll Over

A lot of people get tired of the process of dealing with insurance companies and will eventually just roll over and accept a settlement that’s worth less than what they deserve. Don’t do this! You’re letting the insurance fat cats get what they want. 

Instead, hire an attorney, negotiate with the companies, and let your lawyer work. That’s the recipe for a fair and successful outcome.