How to Handle Insurance Companies in a Personal Injury Case

Understanding the Insurance Company’s Role

Insurance companies are for-profit businesses that aim to minimize payouts. Their adjusters are trained to settle claims quickly and for as little as possible. Recognizing their tactics is the first step in protecting your rights.

Common Insurance Company Tactics

• Lowball Offers – Initial settlements are often far below fair value.
• Delaying Tactics – Prolonging the process to pressure claimants into accepting less.
• Recorded Statements – Adjusters may twist your words to reduce liability.
• Disputing Medical Treatment – Arguing that injuries are pre-existing or unrelated.

Steps to Protect Your Claim

1. Seek Immediate Medical Attention

Even if injuries seem minor, a medical evaluation creates an official record linking the accident to your condition. Follow all treatment plans to avoid claims of negligence.

2. Document Everything

• Accident Details – Take photos of the scene, vehicles, and injuries.
• Witness Statements – Collect contact information and written accounts.
• Medical Records – Keep all bills, diagnoses, and treatment notes.
• Lost Wages – Document missed workdays and income loss.

3. Avoid Early Settlement Offers

Insurance adjusters may push for quick settlements before the full extent of injuries is known. Politely decline until you’ve reached maximum medical improvement (MMI).

4. Be Cautious with Recorded Statements

Never provide a recorded statement without consulting an attorney. Adjusters may use vague or leading questions to shift blame.

5. Do Not Sign Medical Releases

Insurance companies may request broad medical authorizations to dig into unrelated health history. Only sign limited releases for accident-related records.

6. Keep Communication Professional

• Stick to facts, avoid emotional statements.
• Do not admit fault or speculate on injuries.
• Direct complex questions to your attorney.

Negotiating with the Insurance Company

1. Calculate a Fair Settlement

A strong demand letter should include:

• Medical Expenses – Current and future treatment costs.
• Lost Wages – Past and projected income loss.
• Pain and Suffering – Physical and emotional distress.
• Property Damage – Repair or replacement costs.

2. Present a Strong Demand Letter

A well-documented demand letter increases leverage. Include:

• Police reports
• Medical records
• Expert testimonies (if applicable)

3. Counter Lowball Offers

If the insurer’s offer is unfair:

• Reject it in writing.
• Provide additional evidence.
• Threaten litigation if necessary.

When to Hire a Personal Injury Attorney

Signs You Need Legal Help

• Severe or long-term injuries
• Disputed liability
• Bad faith insurance practices
• Complex claims (e.g., multiple parties, commercial policies)

How an Attorney Helps

• Investigates Thoroughly – Gathers evidence, interviews witnesses.
• Handles Negotiations – Uses legal expertise to counter low offers.
• Files a Lawsuit if Needed – Takes the case to court for fair compensation.

Dealing with Bad Faith Insurance Practices

Recognizing Bad Faith

• Unreasonable claim denials
• Failure to investigate promptly
• Misrepresenting policy terms
• Undervaluing claims intentionally

Legal Remedies

If an insurer acts in bad faith:

• File a complaint with your state’s insurance commissioner.
• Pursue a bad faith lawsuit for additional damages.

Final Tips for Success

• Stay Organized – Maintain a file of all correspondence.
• Be Patient – Settlements can take months.
• Know Your Policy – Understand coverage limits and exclusions.
• Consult Experts – Doctors, accident reconstructionists, and attorneys strengthen your case.

By following these steps, you can level the playing field against insurance companies and secure fair compensation for your injuries.