By Damian Miklosovic

Common Mistakes to Avoid When Dealing with Insurance Companies

Common Mistakes to Avoid When Dealing with Insurance Companies


If you've been injured in an accident that was caused by someone else's negligence, you may need to file an injury claim with an insurance company to receive compensation. Without legal representation, it can be challenging to negotiate with insurers. Avoid these common mistakes when dealing with insurance companies after an accident:


Failing to Report Your Claim Promptly


Notify the insurance company as soon as possible after your accident. There are strict claim reporting deadlines. Delaying reporting could make your claim appear questionable and lead to denial of your claim.


Accepting an Early Settlement Offer


Insurance adjusters may try to pressure you into accepting a quick, lowball settlement before you realize the full extent of your damages. Don't rush into settling. Consult an attorney to determine the true value of your claim.


Neglecting to Document Your Injuries and Losses


Keep detailed records of all accident-related injuries, medical treatments, missed work, rehabilitation costs, property damage, and other losses. Thorough documentation directly supports higher compensation. Lack of records can devalue your claim.


Not Following Medical Treatment Plans


Failing to follow prescribed treatment plans can allow insurers to argue your injuries aren't very serious. Follow all doctor's orders closely to prove the severity of your injuries for maximum claim value.


Giving a Recorded Statement


Insurers may request a recorded statement about your accident early in the claims process. Politely decline to give one before discussing the situation with your attorney, as it could be used against you later.


Accepting the Insurer's First Offer


Remember, the first offer presented by an insurance adjuster is likely a lowball one designed to settle quickly and cheaply. Be prepared to negotiate firmly for fair compensation.


Failing to Thoroughly Research Your Claim


Insurers devote resources to minimizing claim payouts. You or your lawyer must devote equal diligence into researching the accident, identifying all liable parties, establishing verifiable losses, and building leverage for demanding adequate compensation.


Not Understanding Damages and Compensation


Work with your lawyer to account for all applicable damages - both economic including medical bills, lost income, and property damage, and non-economic including pain and suffering. Maximize your recovery.


Being Too Flexible


Insurance companies are for-profit businesses. They may take advantage of flexibility on timelines, meetings, requests for information, and other areas. Stand firm regarding your rights and needs.


Taking the First Offer Out of Desperation


If an insurer knows you are in dire need of quick compensation, they may offer an unreasonably low settlement hoping you'll take it in desperation. Be patient and wait for fair compensation.


Becoming Emotional and Hostile


It's understandable to feel anger and frustration negotiating an injury claim, but resist becoming overtly emotional or hostile. Stay calm and let your attorney handle contentious interactions.


Avoiding these common mistakes when dealing with insurance companies after an accident will place you in the optimal position to fight for fair compensation for your injuries and losses. Partner with an experienced personal injury lawyer to handle claim negotiations and maximize your recovery.


Choosing the Right Personal Injury Attorney


Selecting the right personal injury attorney to represent you after an accident caused by negligence is key to obtaining fair compensation for your damages. Here are important factors to consider:


- Specialization - Choose an attorney who concentrates specifically on personal injury law, not a general practice lawyer.


- Relevant Experience - Opt for a lawyer extensively experienced in handling your specific type of case.


- Track Record of Success - Look for an attorney with a proven history of delivering outstanding results for clients.


- Willingness to Go to Trial - The insurer needs to know your lawyer is ready, willing, and able to go to court if necessary.


- Reputation and Resources - Well-respected lawyers with ample resources are best equipped to build strong injury claims.


- Good Communicator - Pick an attorney who is responsive, explains legal strategies, and keeps you informed.


- You Feel Comfortable - You need a lawyer you trust and feel at ease with through the legal process.


- Contingency Fee Structure - Fees based on winning your case motivates maximum recovery.


Doing your research helps find the right personal injury attorney to fight for you. Don't settle - hire a lawyer who will settle for you.


Settling Your Injury Claim


If another party's negligence caused your accident and injuries, you can make an injury liability claim seeking compensation from an insurance company. Here's what to expect during the settlement process:


- Your attorney sends a demand letter to the insurer requesting damages for medical bills, lost income, pain and suffering, and other losses.


- The insurer investigates the claim and makes an initial settlement offer, usually lower than your demand.


- Your lawyer negotiates with the insurance adjuster, providing evidence to justify your demand amount.


- Through an exchange of information and negotiation, the insurer and your lawyer eventually agree on a fair settlement amount.


- You sign a release of claims accepting the settlement amount as resolution for the accident.


- The insurer pays the claim settlement based on the agreement.


- Your lawyer receives their contingency fee percentage from the settlement amount.


- You receive the remaining compensation to use for your needs related to the accident and recovery.


With an assertive lawyer negotiating on your behalf, you're more likely to obtain a personalized injury settlement that covers the true costs of the accident.




Dealing directly with insurance companies after an accident often leads to quick, low settlements. Partnering with an experienced personal injury lawyer levels the playing field and makes fair compensation more likely. Avoid common mistakes by standing firm on your rights, thoroughly documenting your case, letting your attorney handle negotiations, and being prepared for a legal battle if needed. With diligent legal guidance, you can focus on healing while your lawyer fights for the maximum settlement you deserve.

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