The Real Deal With Insurance Companies and Personal Injury Claims

Contrary to the ads we see on television where insurance companies portray themselves as always being there when you need them, the experience of many accident victims today is quite different.

What’s Different Today

In the past, an insurance company’s claim department had only one concern – to determine what you are entitled to receive under your policy. But today, many insurance companies have figured out, with the help of some of the nation’s largest consulting firms, that their greatest concern is how to limit the amount of money they need to pay out in claims – the less they pay out, the more they keep in profit. It has become increasingly more difficult to get what you have paid for under your auto and homeowners policies.

Insurance is a Business

Insurance companies are investment companies. Instead of getting their investments from deposits like banks, or from investors like mutual funds, they get the money they invest from your insurance premiums. The longer they hold on to this money and delay paying your claim, the greater the investment income it creates for them.

Insurance companies are also corporations that are owned by stockholders who wants to see the value of their stock go up. But, if an insurance company pays the maximum on every claim, they would make less profit; as a consequence, the value of their stock would decline.

For this reason, claims adjusters receive bonuses for minimizing what the insurance company has to pay out to settle claims.

One of the ways that these adjusters save thousands of dollars for the insurance company is by offering quick and early settlements to claimants who are not yet represented by an attorney.

The Drawbacks of Settling Early

Shortly after an accident, the insurance company will contact you to get information regarding the accident and to find out what their risk is financially. If they find that they will ultimately have to pay you a substantial amount in damages, they will attempt to settle with you early and cut their losses. Once you accept, you will have effectively given up your right to pursue a lawsuit and obtain more than what you settled for.

Unfortunately, you may not know the full extent of your injuries shortly after the accident, which might be permanent. You may not know if your injuries will require surgery in the future, or what kind of long-term treatment you may need. By accepting a settlement early, the insurance company can stick you with the bill for all of your future medical expenses and save themselves thousands of dollars, since you cannot ask for a dime over your settlement.

Therefore, you should never accept an offer from an insurance company without first speaking with an experienced personal injury attorney who can help you determine if it’s the right thing for you to do. You might find that, given the circumstance, the settlement offer is fair. On the other hand, you may find that their offer is insufficient to compensate you fairly for the damages that you have sustained in the accident. In either case, you will need the help of an experienced attorney to accurately arrive at that determination.

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Ryan R. Cox & Associates, LLC

Ryan R. Cox & Associates, LLC is a litigation law firm that represents individuals and families in serious personal injury and wrongful death claims throughout Missouri. We help people who have been injured in all types of accidents—including car or truck accidents, motorcycle accidents, slip and fall accidents, and much more. Whether your injury is something that can cause long-term issues like a brain injury or spinal cord injury, or it is something you’ll likely make a full recovery from, we are here to help.

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