If people were to believe what they see on the television and hear on radio ads, they would probably think that insurance companies are very friendly, consumer-focused organizations. However, like any other business, an insurance company has the top priority of making as much money as possible.
They have an incentive to minimize what they pay on claims even if someone suffered catastrophic losses, and their business practices often reflect that desire for maximum profitability. Individuals involved in motor vehicle collisions often have a very difficult time handling the matter with the insurance company.
Why are insurance negotiations so challenging after car crashes?
People don’t know what they should receive
It can be very difficult to put an accurate price on the impact of a car crash. For example, people need to consider not just the cost of emergency medical care but also the cost of future treatment. There are lost wages and lost earning potential to consider.
Some people will need to make adjustments to their homes or vehicles to make them more accessible. Finally, people need to consider the cost of repairing or replacing their vehicle, as well as the future diminished resale value of it when they sell it or use it as a trade-in at a dealership.
Companies use clever tactics to minimize payments
Even when people know roughly what a crash will cost them, they can expect that the insurance company will try to negotiate them down from that figure. Tactics such as stonewalling or offering low settlements trick some people into accepting less than they deserve.
The insurance company will try to avoid paying out the maximum amount possible based on the policy limits for the at-fault driver’s coverage. No matter the extent of someone’s losses, insurance won’t pay more than those limits. The higher the overall policy limit, the more likely the insurance company is to aggressively negotiate.
Many people do not have the energy to handle intense negotiations while also dealing with the fallout of serious personal injuries. Recognizing how challenging a sizeable insurance claim can be may help people get great support so that they achieve the optimal outcome.