The Role of Insurance Companies in Personal Injury Cases
If you have been hurt in an accident, whether a car accident, slip and fall accident, or otherwise, you will likely be dealing with an insurance company as part of the claims process. You may have a right to recover compensation for your injuries, and the insurance company has a duty to investigate and pay all valid claims.
However, it is important to remember that the insurance company is in business to make a profit, so they might not always have your best interests in mind. Keep reading below to learn more about the role of insurance companies in personal injury cases, as well as the things you need to watch out for.
Overview of the Insurance Company’s Legal Duty
The insurance company has a legal duty to act in good faith when investigating and resolving claims. This means that they must investigate all reasonable claims and promptly pay all valid claims. When an insurance company acts in bad faith, it can be held legally responsible for the amount of the original claim plus additional damages.
Some examples of bad faith include:
- Ignoring communications or failing to respond in a reasonable time
- Misrepresenting the terms of the coverage
- Changing the terms of coverage after a claim has been filed
- Intentionally delaying the processing of a claim
- Offering you substantially less money than your claim is worth
Insurance companies play a large role in personal injury cases, and their work includes many steps throughout the process.
What Does an Insurance Company Do in Personal Injury Cases?
Insurance companies can be involved in personal injury cases in many ways. Here are some of the most common roles an insurance company plays through the claims process.
Defend Its Insured
One role of the insurance company is to defend its insured. For example, imagine you are hurt in a car accident and file a claim against the at-fault driver. That driver’s insurance company will step in to defend them and try to help them avoid liability. When they are successful, you may be out of luck and unable to recover any compensation from them for your injuries.
Thoroughly Investigate the Claim
Insurance companies will thoroughly investigate the claim, including all the facts surrounding the accident itself. This investigation will help them determine whether their insured is liable for the accident and whether they will have to pay the claim.
Part of the investigation includes looking for loopholes in the coverage or the facts of the case. Remember that the insurance company is seeking to protect its bottom line.
Pay or Deny the Claim
Now, the insurance company must decide whether to pay or deny the claim. This will depend on the outcome of their investigation. If they decide to deny the claim, they must state their reasons for doing so. If they decide to pay the claim, they will first need to determine an appropriate value.
Value the Claim
Once the insurance company has determined that their insured was at fault, they will determine what they believe to be the value of your case.
This valuation will consider things like:
- The amount of your medical bills
- The severity of your injuries (for pain and suffering)
- Cost of vehicle repairs or other property damage
- Whether you can return to work and the amount of your lost wages
When putting a value on your claim, the insurance adjuster is likely to minimize your injuries as much as possible. This is where having an experienced personal injury lawyer on your side is crucial to getting all the compensation you are legally owed.
What to Avoid When Dealing with the Insurance Company
It is worth repeating that the insurance company may try to take advantage of you to avoid paying your claim.
When dealing with them, it is important to remember to avoid:
- Giving a recorded statement: They may use your statements against you.
- Agreeing to a quick settlement: Make sure you fully understand the extent of your injuries and damages first. Once you settle, you cannot recover any additional compensation.
- Oversharing: Giving the insurance company irrelevant or excessive information could hurt your claim.
- Dealing with the insurance company without a lawyer: You can level the playing field by having an experienced personal injury lawyer on your side.
Keeping these things in mind is crucial to protecting your claim.
Call Benton Accident & Injury Lawyers Today to Schedule a Free Consultation With a Dallas Personal Injury Lawyer
Dealing with an insurance company after an accident can quickly become stressful and overwhelming, especially while you are trying to recover from your injuries. Insurance adjusters are trained to protect the company’s financial interests, and even small mistakes during the claims process could affect the value of your case.
If you’ve been injured in an accident in Dallas, TX, please contact the experienced Dallas personal injury lawyers at Benton Accident & Injury Lawyers today. We offer free consultations.
We proudly serve in Dallas County and its surrounding areas:
Benton Accident & Injury Lawyers
1825 Market Center Blvd # 350, Dallas, TX 75207
Phone: (214) 556-8321
Hours Open: 24/7
Our firm is located near you. We have an office in Dallas.
Find us with our GeoCoordinates: 32.7950252,-96.8241861
