Life becomes complicated after an auto accident. Victims must find alternate transportation, heal from their injuries, and negotiate with insurance companies. Too often, the biggest struggle is the time spent on the insurance claim. Insured drivers may feel as if they have all the protection they need because they pay their premiums, but that is not always the case.
Learn some of the issues that can complicate auto insurance claims below.
Why They Delay
Insurers may use delay tactics. The company may want to delay so they have more time to investigate the case. The goal may be to frustrate the client, so that they will accept any offer just to have the process end.
Most insurance companies delay only because they do not want to give up the money they use for their investments. The investments earn interest for the companies that help them make a profit. Any claim costs insurers money in two ways: the insurer loses the cash for the claim and loses the interest that the amount of cash may have earned for them.
How Delays Happen
Insurance companies have many ways to delay a claim. They may ask for more paperwork or insist on more photos. The company may claim the adjusters have too many claims to process and it will take time to get someone to inspect the vehicle. The insurance company may request a recorded interview and refuse to process the claim further until the interview takes place.
The insurer may ask for multiple interviews with the client because they believe they need more information. The company may refuse to discuss anything until they hear from the other insurance company involved. Sometimes, the company may explains that a claim is processing — with no other information available.
When Denials Occur
Denial is the worst result for someone with a stack of medical bills and a vehicle waiting for repairs. Denials happen when insurers believe the client does not have coverage for the damage listed on the claim. The company may also feel that the damages are not enough to qualify for coverage.
Utah is a no-fault state, so anyone with an accident claim in Utah must have damages that exceed the maximum amounts of their insurance before they can file a claim with the company insuring the other driver. The result is that many people must negotiate with two insurance companies to receive the compensation they need.
When Insurers Investigate
Insurance companies may also legitimately deny a claim they feel is fraudulent. Insurers have legal teams and hire investigators because of their concern with fraudulent claims. The insurance industry reports that about 10 percent of their financial losses are property or casualty claims that involve fraud. The insurance industry estimates fraudulently collected amounts cost them about $30 billion annually.
Insurance antifraud tactics include the use of private attorneys and investigators, but also cyber technology. The companies use software to look for red flags in claims like edited accident photos or videos or a claim filed immediately after buying insurance. Other potential red flags include drivers with several recent hit-and-run accidents or single-vehicle accidents.
It is easy to understand the aggressiveness of investigators due to the potential loss the insurance industry faces because of dishonest clients. However, a genuinely injured driver deserves to have the coverage they pay for through their insurance policy. An accident victim has the legal right to sue if they do not receive fair treatment after an accident.
It is nearly impossible for a client to prove their case alone when the insurance company has a team of lawyers claiming fraud against them. Utah drivers need reliable legal advice and guidance through the complicated insurance process. At Ipson Law, we can help you gather the proof you need to get compensation. Contact us to schedule a consultation.
Michael is an attorney who started Ipson Law because of his passion for personal injury law. He graduated with a Juris Doctorate degree from McGeorge School of Law in Sacramento, CA. Learn more about Michael on our about us page, and contact Ipson Law to find out how we can help you.
