Insurance companies have plenty of tricks up their sleeves when it comes to dealing with car accident victims. Each one of these tactics is approached in a different manner, but they’re all designed to accomplish one thing: to hold on to their money. Insurance companies are in the business of making money, not friends.
Tactic #1: Delay
A common saying amongst insurance companies and adjusters is, “delay, deny, defend.” The longer insurance companies can hold on to their money after your car accident, the better for them. The delay helps to accomplish two things: 1) they can collect interest on their money; and 2) they can use tactics to deny or defend your claim and pay you less than you deserve or nothing at all.
For example, you may have a legitimate claim for $100,000, but it takes two years for the case to settle. While the case is ongoing, they will collect interest to offset their losses. However, by the time you see the settlement check, the value of the actual loss will be much less based on inflation and any fees and costs. Additionally, the longer a case or claim drags along, the higher the chance there is for them to settle your case for less due to financial stress or find a way to deny or defend your claim in court.
In California, the time to file a lawsuit (Statute of Limitations – SOL) for a car accident is within two years of the accident happening. If you don’t file within this time, you will waive your claim. Insurance companies will use the delay to their advantage to try to run car accident victims right up against the Statute of Limitations so that the victim will either accept a lower settlement or it will be difficult to find an attorney. Many attorneys won’t take cases that are right up against the Statute of Limitations because it doesn’t give them time to do their own investigation to make sure there is actually a claim.
Insurance companies know that no one wants their claim to drag on and will offer a fraction of what it’s worth just to get things out of the way. This is also to their benefit because then they don’t have to deal with an attorney who could level the playing field. Adjusters are trained to listen for cues to strike on these opportunities. Let’s say, for example, you mention that “this is a bad time” or “I’m going through a divorce” or maybe someone in your family is sick. They will use this under the guise of help to give you a lesser amount and a “quick” resolution.
Insurance companies must complete their investigation in a reasonable amount of time, but don’t be fooled, they will do everything they can to delay and it only benefits them.
What are ways the insurance company will delay to my hurt claim?
1. Failing to return phone calls
People are surprised to find out after making contact with the adjuster that they don’t receive a return phone call. Each adjuster has hundreds of claims at one time. This is part of the design to grind down the car accident victim and makes it difficult to provide reasonable service.
2. Asking for more information
Insurance companies will delay by claiming their investigation is ongoing and they need more information to fully process it. This is especially true when a car accident victim is isn’t represented by a lawyer and they can test the boundaries of whether the victim knows their rights.
One of the main things adjusters will request is a “release of medical records.” While this sounds reasonable for them to determine the extent of the injury, it’s actually designed to hurt your claim. Medical records can be limited in both time and only related to the incident. What insurance companies will do is send the victim a request for a FULL release disguised as a simple release that gives access to the entirety of their medical records throughout their lives, even if they are unrelated to the car accident.
This is so they can try to find pre-existing conditions or any other injuries in your past that they can say is the cause instead of the car accident. They may use this to deny or diminish your claim saying that the injury is actually from something else—not the car accident. However, you may actually be entitled to damages. In California and other states, the “eggshell doctrine” allows plaintiffs to recover for any damage that aggravated or exacerbated a pre-existing condition or injury.
They may also ask for more wage loss support like pay stubs from multiple weeks or months, a note from your doctor to justify absence from work, a note from your employer confirming you missed work, or that you need an estimate of damage from an “approved body shop.”
Ultimately though, the delay is simply designed to allow them to hold on to their money. Whether it be through collecting interest, devaluing your claim, or denying or defending and trying to pay nothing.
Part II: Recorded Statements
