Importance of Legal Representation for Auto Accident Victims

On February 7, 2007, CNN investigative reporters revealed damning evidence against major insurance companies, which are profiting billions of dollars by underpaying injured car accident victims. The strategies adopted by insurance companies have them making take-it-or-leave-it payout offers that in many cases only cover a fraction of the victims’ expenses. The money these insurance companies are denying car accident victims would otherwise go toward doctor visits, lost wages, and rehabilitation.

This tactic is part of a strategy insurance companies are using to make themselves billions of dollars. CNN’s year-and-a-half investigation into the insurance industry found that if you are injured in a minor accident, major insurance companies will likely challenge your claim, drag you into court, and take years before making you an offer. This offer is often significantly less than your claim is worth.

Industry insiders say this results in 80% to 90% of injured victims accepting what the insurance company offers instead of fighting.

According to Jeff Stempel, Nevada insurance law professor, accident victims are getting hurt further by being dragged into court by insurance companies. Professor Stempel says, “To continue this kind of program is, in my view, institutionalized bad faith.” These insurance companies seem to believe their money is better spent dragging someone hurt who needs insurance money for their injuries through court instead of helping them pay their bills.”

Insurance companies make more money if they pay you less money for your injuries, even if you need the money to cover necessary medical bills, lost wages, and rehabilitation. The math behind the insurance companies’ strategy is simple: Take $1,000 off of 1 million claims and you’ve essentially made $1 billion. Do this with every claim over a number of years and you’ve made billions of dollars.

Insurance companies achieve this cost cutting through a process known as the “Three Ds:”

1. Deny the claim.
2. Delay the claim.
3. Defend their denial of the claim.

By forcing “smaller, walk-away settlements,” which are take-it-or-leave-it offers years after the actual accident occurred, battles have already been fought, bills have added up, and people are afraid that they won’t get any money for their claims, insurance companies can essentially force an injured victim to accept whatever it is they’re offering. This tactic preys on the fear of a car accident victim who wonders if they’re ever going to get any money for their accident.

If you have been in an accident, you should seek out legal representation. The insurance companies have lawyers. Attorney Search Network can referral you to a pre-screen Auto Accident Injury Attorney. Fill out our online form or call us at 800-215-1190.

Source: Insurance companies fight paying billions in claims, published 02/07/07 on Anderson Cooper 360 Blog. Accessed 02/08/07 via www.CNN.com.

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