New York Construction Accident and Personal Injury Blog

Understanding Deceptive Practices of Insurance Companies: A Guide for Personal Injury Victims

Posted by Dennis R. Smith, Esq. | Jul 17, 2024 | 0 Comments

Navigating the aftermath of a personal injury can be a daunting process, especially when dealing with insurance companies. While insurers are supposed to help you recover your losses, many employ deceptive practices to minimize payouts. In this post, we'll explore common deceptive tactics used by some major insurance companies, including GEICO, State Farm, Liberty Mutual, and Progressive.

Common Deceptive Practices by Insurance Companies

1. Delaying Claims Processing Insurance companies often delay the processing of claims, hoping that policyholders will become frustrated and accept a lower settlement or drop their claim altogether. This tactic is used to wear down the patience of claimants, forcing them to settle for less than they deserve.

Example: If State Farm uses delay tactics, requiring excessive documentation and slow responses to communications, making the claims process unnecessarily prolonged.

2. Lowball Settlement Offers Insurers frequently offer settlements far below the actual value of a claim, especially if the claimant is not represented by an attorney. These lowball offers are made in the hope that the claimant will accept the money out of desperation or lack of knowledge about the claim's true worth.

Example: If GEICO initially offers low settlement amounts to claimants, particularly in cases where the injured party does not have legal representation.

3. Disputing Liability Another common tactic is disputing liability or fault for the accident. Insurance companies will investigate claims thoroughly to find any reason to deny responsibility or to reduce the payout by shifting blame to the claimant.

Example: If Liberty Mutual contests liability in car accident cases, scrutinizing the details to find any potential for reducing their liability.

4. Requiring Unnecessary Documentation Insurance companies may ask for excessive or unnecessary documentation to process a claim, which can delay the process and frustrate the claimant. This tactic is often used to discourage claimants from pursuing their claims.

Example: If Progressive requests extensive medical records and other documentation, even when the information is not directly relevant to the claim, to slow down the settlement process.

5. Misrepresenting Policy Language Some insurers may misrepresent the terms and conditions of the policy to the claimant, suggesting that certain damages are not covered or that the policy limits are lower than they actually are.

Example: If GEICO of misinterprets the language of a policy to minimize payout obligations.

6. Denying Claims Without Just Cause Insurance companies sometimes deny claims without a valid reason, betting that the claimant will not challenge the denial. This can be particularly stressful for individuals who are already dealing with the aftermath of an accident.

Example: If State Farm denies claims based on dubious grounds, forcing claimants to seek legal action to get the compensation they deserve.

How to Protect Yourself

1. Hire a Personal Injury Lawyer Having a skilled personal injury lawyer on your side can significantly improve your chances of receiving fair compensation. Lawyers can navigate the complex legal landscape, challenge deceptive practices, and negotiate better settlements.

2. Document Everything Keep thorough records of all communications with the insurance company, medical treatments, and any other relevant information. This documentation can be crucial if you need to dispute the insurer's actions.

3. Understand Your Policy Familiarize yourself with the details of your insurance policy. Knowing what is covered and the limits of your policy can help you recognize when an insurer is trying to deceive you.

4. Don't Accept the First Offer Insurance companies often make initial lowball offers. Consult with your lawyer before accepting any settlement to ensure it is fair and covers all your expenses.

5. Be Persistent Insurance companies rely on the frustration of claimants to push through low settlements. Stay persistent and follow up regularly to ensure your claim is being processed in a timely manner.

Conclusion

Insurance companies like GEICO, State Farm, Liberty Mutual, and Progressive can potentially use deceptive practices to minimize payouts. By being aware of these tactics and taking proactive steps, you can better protect your rights and secure the compensation you deserve. If you've been injured in an accident, consider consulting with a personal injury lawyer to navigate the claims process effectively.

For more insights and legal assistance, contact the Law Offices of Dennis Smith today. Our experienced team is here to help you every step of the way.

About the Author

Dennis R. Smith, Esq.

DENNIS R. SMITH, ESQ. Helping victims of construction accidents, personal injuries, premises liability accidents, car accidents, truck accidents, and many other accident types across Long Island and New York City. Founding attorney Dennis Smith is success-driven and provides honest, reliable legal services to injury survivors in need. Accountability is key, and it’s our goal to ensure that those who hurt you are brought to justice.

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