From catchy jingles to cheesy recurring characters who seemed impossibly friendly and upbeat, insurance companies invest heavily in their public opinion. They want people to like and trust them. The more you trust your insurance provider or the company that insures a driver who hits you, the less likely you are to become contentious while negotiating a claim.
If you believe that the insurance company wants to act in your best interests, you might accept their statement that a settlement offer is their best offer at surface value. You might assume that they would naturally offer as much coverage as they could given the extent of your losses and injuries.
Unfortunately, regardless of their slogans and songs, insurance companies really just want to make a profit, and your claim could be an obstacle to that goal.
Your major claim means a loss for the company
Insurance companies may boast about their speedy responses to claims or their history of approving even strange claim requests. However, they don’t pay out on claims out of the goodness of their hearts but rather because they have a legal obligation to do so.
Bad faith insurance laws create penalties for insurance companies that don’t pay claims in a timely and appropriate manner. After all, the insurance company really only makes money when the value of the premiums they collect and the return on how they invest those premiums exceeds the total claims they pay out in a year.
The bigger your claim and the longer an injury or condition might affect your life and income, the bigger the incentive for the insurance company to underpay you and offer you a settlement that is less than what you deserve.
To get a fair outcome, you have to know what your claim is worth
Dealing with insurance companies after a car crash isn’t easy. They may ignore you, manipulate you into giving a recorded statement or try to push you to settle quickly for a low amount.
Having a long-term view when you analyze the cost and impact of the crash will make it easier for you to set a price on your claim. Knowing what your injuries will likely cost will make negotiations easier and help you respond to the sometimes underhanded tactics employed by insurance companies after major car crashes.