Dispelling Common Myths About Insurance Companies and the Accident Claim Process

Today, the United States insurance industry is a trillion-dollar a-year business.  That was seven percent of the entire United States GDP (everything we produce) in 2012.

It is the largest industry in the world in terms of revenue.  Think about it.  We all buy insurance for our lives, homes, automobiles, health . . . you name it, the industry insures it.

Insurers have invested a huge part of their revenues in marketing campaigns.

What is the theme of these campaigns?  You can trust us.  We have your back.

In fact, dealing with insurance companies can be a trap for people injured in car crashes.  Insurance companies have expended massive resources to train adjusters. They teach adjusters how to get hurt and vulnerable victims to accept as little as possible for claims. They especially know how to keep them from retaining a personal injury lawyer, someone who could actually get them the compensation they need.

Adjusters are extensively trained on how to build rapport with claimants. They let claimants believe that the insurance company is on their side, trying to help them. The opposite is true.

In this article, we explore myths about insurance companies that everyone should know. We also discuss how to combat their tactics if you were recently injured in a car accident.

If you have any questions about how to navigate your car accident claim after a crash, we’re here to help. Call us today at (312) 578-9501. 

5 Common Myths about Insurance Companies

Insurance companies’ marketing has created many myths about what injured people can expect when they make a legitimate insurance claim.

Some of the common myths we hear again and again are:

MYTH: “I spoke with the insurance company on the phone and they admitted liability.”

REALITY:  This is part of adjusters’ training to build rapport and convince you that they are on your side, even if they also represent the person who hit you.  I guarantee, once you file a lawsuit, go to a lawyer, or even just reject their lowball offer, they will deny any fault and fight you tooth and nail.

MYTH: “Insurance companies will give me a reasonable settlement offer if I just write them a letter with a reasonable request.”

REALITY:  Insurance companies pay many times more money to claimants with attorneys than without attorneys.  Insurance companies are happy to make a quick payment to an unrepresented claimant that does not have an attorney, but that doesn’t mean the payment will be fair or reasonable—far from it.

In the past thirty years, insurance companies moved to a model where they stopped having humans evaluate injuries, crashes, and claims. Instead, they started using computer models that just take in statistics and output standardized payment values.

Of course, this system does not measure the actual human suffering injured victims are experiencing.  Rather, it is calibrated to pay claimants as little as possible.  Adjusters are trained to use that as a baseline and try to close claims with as little cost to the company as possible.

MYTH: “My insurance adjuster is friendly and cares about my well-being.”

REALITY:  Your insurance company is highly trained to act like your friend to keep you from getting an attorney.  They are trained to create trust and rapport and to “guide” you through the claims process so that they can give you a lowball settlement from your injuries.

Think about it.  The adjuster’s job is to deal with injured people making claims all day long.  It might be your life, but it just works for them.  All they really want is to get you to release your claims.

MYTH: “When I make a claim and the insurance company asks for a recorded statement, I have to give them a statement or they won’t deal with me.”

REALITY:  The one and only reason your insurance company wants information from you are to figure out all the ways they can deny part of or all of your claim.

If you retain an attorney, the insurance company is prohibited from contacting you directly without your attorney’s permission.  That rule is to protect consumers from being taken advantage of by predatory insurance companies.

MYTH:  “An insurance company will pay for all my past and future medical bills after a crash because that’s their job.”

REALITY:  Paying for your injuries after an auto crash is the insurance company’s duty, but that does not mean that they will do it.  Their adjusters are trained to find every excuse under the sun to reduce or nickel and dime every charge in your medical bills.

They may have no medical training, and they may never have seen you or treated you, but they will still have strong opinions that expensive medical treatment was unnecessary or excessive.  Why?  Because the insurance computer system said you should be better already.

Injured Plaintiffs Recover More from Insurance Companies When Represented by an Attorney

In the insurance company’s playbook, one of the biggest tactics is to keep injured individuals from retaining lawyers. Why? Because injured individuals represented by attorneys recover much more from insurance companies than unrepresented individuals.

Study after study supports this conclusion.  The Insurance Research Council, an organization that gathers and analyzes statistics for the insurance industry, reported that represented clients collected recoveries 3.6 times greater than non-represented clients on average.

And insurance companies know this fact is true.  In lawsuits against Allstate, a 1995 training manual for Allstate claims adjusters were leaked.  The manual included an entire section on how adjusters should deal with claimants who are not represented by an attorney.  Allstate recognized that “represented claims settle for two to three times more than unrepresented claims.” The entire section was chock full of advice for getting unrepresented, injured insured customers to settle their claim directly with Allstate without going to an attorney.

Insurance companies often prey on traumatized individuals who have suffered serious injuries in an automobile crash.  Many of their tactics are specifically designed to keep people in the dark about their rights by convincing them not to consult with an attorney.

That’s why an accident attorney dealing with car crash claims must understand “this system.”  After all, these insurance companies are in business to make a profit . . . to take in a lot more than they pay out. We believe that injured folks should have access to excellent representation, so they can get the amount of compensation they deserve.

Have a question about your auto accident claim? We Can Help

If you or someone you love was recently injured in a car accident, the last thing you want to do is speak with the insurance company. Our personal injury attorneys at Shannon Law Group, P.C. can help you navigate this uncertain time. We know the ins and outs of dealing with insurance companies and their lawyers.

Call us today at (312) 578-9501 to schedule a free consultation. You can also fill out the form on this page, and we will get back to you within 1 business day. We look forward to hearing from you!