When a catastrophic accident occurs, the financial costs can skyrocket. Whether it’s a brain injury, spinal cord injury or some other life-altering harm, the medical treatment, lost income and future care needs can amount to hundreds of thousands or even millions of dollars.
Unfortunately, insurance companies use various strategies to reduce the amount they will pay for claims. Understanding their tactics can help you protect your rights and avoid costly mistakes.
Quick settlements or unnecessary delays
One of the most common strategies insurance companies use is offering a settlement very early in the process. Shortly after your accident, an adjustor may contact you with what sounds like a generous offer.
The quick settlement can lead you to believe that the insurance company is being helpful. The truth is that catastrophic injuries can take months or years before you fully understand their true impact on your life. Early settlements rarely account for long-term medical needs, ongoing surgeries or reduced earning capacity.
Furthermore, when you accept that settlement, you typically waive your right to pursue additional compensation. If your medical costs turn out to be much higher than expected, you may need to find another way to cover those expenses.
Delays can also work in an insurance company’s favor. Catastrophic injury victims often start to experience financial stress once they start facing overwhelming medical bills in addition to lost income. By slowing down the investigation or repeatedly requesting documentation, insurers hope claimants will become desperate enough to accept a lower settlement.
Insurance companies may also take advantage of Minnesota’s modified comparative fault rule. This means your compensation may be reduced if you are partially responsible for the accident, and you can’t recover damages if you are 50% or more at fault. They may try to argue that you were partially responsible for what happened. Even a small increase in the percentage of fault assigned to you can significantly reduce your claim’s value.
In high-value cases, insurers conduct surveillance and review social media activity. They will take photos or posts out of context and present them as evidence that you are not seriously injured and are more physically capable than you claim.
Insurance companies use many strategies to protect their profit margin. That’s why you need a legal team that knows the insurance companies’ playbooks and will fight for you so you can receive the full compensation you need for your recovery and financial stability.