Being in a car accident is life-altering enough, but dealing with insurance companies afterward can make it even more stressful. Some insurers use deceptive tactics, particularly before you hire a lawyer, to settle claims quickly and for less than you deserve. Understanding these tactics and knowing how to respond is key to protecting your rights.

Understanding the Settlement Tactics Insurance Companies Use

Imagine this: after an accident, you decide to handle the claim yourself. The insurance company accepts fault and agrees to cover your car repairs, rental vehicle, and even offers to pay for your injuries. They tell you there’s no need to hire a lawyer because they’ll “take care of everything.”

Then comes their settlement offer. It includes a small lump sum—typically between $600 and $5,000—and a promise to cover future medical expenses up to a certain amount. At first glance, it sounds reasonable, but here’s the catch: they’ll only reimburse those future expenses after you’ve paid for them upfront and submitted detailed invoices.

In reality, most victims never see that money, and the process can leave you financially burdened or unable to get the care you need.

The Problem With Promises for Future Medical Expenses

To access the funds the insurance company "sets aside" for medical expenses, you must pay for treatment upfront. For many, this is simply not feasible, as medical bills can quickly reach thousands of dollars. Even if you manage to cover those costs initially, insurers often adjust the reimbursement amount based on what they consider “reasonable and customary” rates—leaving you responsible for the difference.

For instance, if your medical provider charges $5,000 for treatment, the insurance company may decide that $2,500 is a fair amount to reimburse. This means you’re stuck paying the remaining $2,500 out of pocket.

What If You Have Health Insurance?

Health insurance might seem like a safety net in these situations, but it comes with its own challenges. While your insurer may initially cover your medical bills, they often have a legal right to reimbursement (subrogation) from your settlement. This means that a portion of your compensation may go toward paying back your health insurer, reducing what you ultimately receive.

Additionally, health insurance may not fully cover all necessary treatments, such as specialized therapy or alternative care, leaving you with out-of-pocket costs that the settlement may not account for. This is why it’s crucial to carefully review any settlement offer with a qualified attorney before accepting.

Why Insurance Companies Use These Tactics

Insurance companies aim to minimize payouts. They rely on victims’ lack of legal knowledge and financial vulnerabilities to pressure them into accepting lowball settlements. Once you sign a settlement agreement, you waive your right to pursue additional compensation, even if your injuries turn out to be more severe or require long-term treatment.

By framing their offers as “fair” and “convenient,” insurers often mask the fact that they’re saving money at your expense.

How a Personal Injury Lawyer Can Help

If you’ve been offered a settlement, it’s essential to consult a personal injury attorney before making any decisions. An experienced lawyer can:

• Evaluate the full value of your claim, including current and future medical expenses.
• Negotiate directly with the insurance company to secure a fair settlement.
• Ensure your settlement covers lost wages, pain and suffering, and other damages.
• Protect you from unfair reimbursement practices or lowball offers.

Hiring an attorney not only levels the playing field but also ensures your rights are protected throughout the process.

Don’t Settle for Less Than You Deserve

Insurance companies are focused on saving money—not on your recovery. If you’ve been injured in an accident, don’t let them take advantage of you. You deserve compensation that covers all your medical needs, both now and in the future.

Contact Us Today
If you’ve been approached with a settlement offer or need help navigating your claim, we’re here to help. Contact us for a free consultation to learn how we can protect your rights and secure the compensation you deserve.

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