Jason Stephens | February 27, 2023 | Personal Injury
Insurance companies can be shady. If you’ve ever had to file a claim with insurance, then you know the process is a headache.
When it comes to personal injury claims, insurance companies get scared. They know that catastrophic injuries, or even wrongful death claims, can lead to huge payouts. That’s why insurance adjusters do everything in their power to avoid paying personal injury claims.
Why Do Insurance Companies Try To Get Out Of Paying?
Insurance companies make money by collecting premiums and then reinvesting them. Insurance companies are incentivized not to pay claims. That’s because if they pay too many claims, they will not generate revenue and can lose money.
Has your car insurance ever gone up after an accident? This is a perfect example of how insurance companies think. Since they consider you a riskier driver, they make you pay a larger premium. This mitigates the risk to their business. If you get into another accident and they have to pay up, they know that you paid more upfront.
Texas Insurance Code: Unfair Settlement Practices
Under the Texas Insurance Code, insurance companies cannot engage in unfair settlement practices.
This means that they cannot:
- Misrepresent a policy provision or material fact relating to the coverage
- Fail to make a prompt, fair, and equitable settlement of a reasonably clear claim
- Fail to provide a prompt and reasonable explanation of denial or compromise settlement
- Refuse to pay a claim without conducting an investigation
If the insurance company breaks these rules, you may have another legal claim against them.
Insurance Companies Deny Claims
One way that insurance companies get out of paying money is by denying claims. When an insurance company denies a claim in a personal injury case, they refuse to pay the injured party. Usually, they cite a policy loophole or technicality.
Insurance companies routinely deny claims by denying fault. In these cases, the insurance company argues that the policyholder is not at-fault for the accident, and should not have to pay for the injuries. This is common after multi-vehicle car crashes when several people contributed to an accident.
Insurance companies also deny claims by denying the existence or severity of the injury. Many injuries become more apparent and debilitating over time. Insurance companies will try to downplay the injury to avoid paying or minimize the amount that should be paid.
Insurance Companies Delay Claims
Another common tactic of insurance companies is to delay paying claims. The longer they delay, the more likely the injured person will become frustrated, confused, and give up. Denying claims lets insurance companies keep money invested for longer, generating more money.
If you’ve ever had to file an insurance claim, you know that it is confusing. Insurance adjusters ask you for loads of documentation and statements. They make you read complicated legal documents to exhaust you. Adjusters know that many people will give up and stop pursuing the claim.
Insurance Companies Decrease Claims
If an insurance company knows that they cannot get out of paying, they almost always make a lowball settlement offer. Texas applies modified comparative fault in personal injury cases. That means if you are partially responsible for the accident, then your damages are reduced by the percentage of responsibility.
Insurance companies will try to decrease a claim by arguing that you contributed to the accident. As a result, they will make you an unfairly low offer. You must be careful when speaking with insurance companies to make sure you don’t make any statements that can be construed as you being at fault.
Unfortunately, many injured people without a lawyer accept low offers because they don’t understand the true value of their case. When you are hurting for money after an accident, it’s easy to want to accept the first offer that you get. Talking with a lawyer can help you understand whether or not you are entitled to more money.
Contact Our Personal Injury Law Firm in Fort Worth, TX
If you’ve been injured in an accident in Fort Worth and need legal help, contact our Fort Worth personal injury lawyers at Stephens Law Personal Injury | Wrongful Death | Truck Accidents to schedule a free consultation.
Stephens Law Personal Injury | Wrongful Death | Truck Accidents
1300 S University Dr # 300
Fort Worth, TX 76107