Car accidents can be stressful, especially when dealing with insurance companies. An insurance company exists to make a profit "“ and they don't want to give anyone a bigger slice of the pie than necessary. This often leads to short-changing car accident victims who deserve more financial compensation.
How Car Insurance Companies Get Fat
Insurance companies are some of the wealthiest organizations in the world. But do you know how they make the bulk of their money and protect their shareholders?
Insurance companies collect premiums from their clients. (You know this "“ you make these payments every month or year.) But what you might not know is that these companies take those premiums and invest them. Some companies are more aggressive with their investments "“ putting them into mutual funds "“ while others are more conservative, choosing bonds, high-yield savings accounts, or CDs. But, regardless, they put that money to use.
The last thing insurance companies want to do is pull money out of these investments to pay off claims or settlements. So when you come in with a claim, they see you as a threat. They'll do anything to minimize how much they have to pay so they can continue to get fat from the interest they earn on the premiums they hold. That's the truth that nobody wants to tell you. And it's why you need to fight back!
5 Tips to Protect Your Best Interests
Unless you want to become part of a statistic that feeds the bottom line of greedy insurance companies, you owe it to yourself to understand what's happening and avoid getting ripped off.
Here are five helpful tips that will allow you to protect your best interests after a car accident.
- Understand Your Policy Coverage
Before an accident happens, take the time to understand your insurance policy. Know what's covered and what's not. For example, liability coverage might pay for damages caused to others, while collision coverage might cover damages to your vehicle. Understanding these details can help you navigate conversations with insurance adjusters confidently. If you're unsure about your policy, contact your insurance company for clarification.
- Document Evidence Meticulously
After an accident, gather as much evidence as possible. Take photos of the accident scene, including damage to your vehicle, the other party's vehicle, road conditions, and any injuries. Collect contact information from witnesses and file a police report. Detailed documentation strengthens your case and prevents insurance companies from disputing your claim based on lack of evidence.
- Avoid Quick Settlements
Insurance companies might offer quick settlements, hoping you'll accept a lower amount to close the case swiftly. Be cautious of accepting any settlement before fully assessing the extent of your injuries and damages.
As attorney Mickey Keenan explains, "Many people underestimate their losses, as they fail to consider all possible compensation they deserve for a fair recovery."
Sometimes, injuries take time to manifest fully, and settling too early might leave you without enough compensation for ongoing medical treatments or vehicle repairs. Consult with a lawyer or consider the long-term impact before agreeing to any settlement.
- Seek Legal Advice
If you feel overwhelmed or uncertain about handling insurance negotiations, seek legal advice. A knowledgeable attorney specializing in personal injury or car accidents can guide you through the process, protect your rights, and ensure you receive fair compensation. They understand the tactics insurance companies use and can negotiate on your behalf for a better settlement.
- Be Cautious of Recorded Statements
Insurance companies often request recorded statements regarding the accident. While it's essential to provide necessary information, be cautious about what you say.
Whatever you do, avoid admitting fault or speculating about your injuries. Insurance adjusters might use your statements against you to minimize your claim. It's okay to decline or consult with a lawyer before providing a recorded statement. (In fact, it's almost always a good idea.)
Don't Fall Victim Twice
The unfortunate reality of the matter is that many people get victimized twice "“ once in the car accident and a second time when the insurance company comes in and screws them over. But this doesn't have to be your story. If you know how to stand up against the insurance companies, you can ensure you get a settlement or claim that's fair.
Let this article serve as a starting point for how you think about your situation.
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