1. Profit Motivates Insurance Companies
This article will explain what motivates insurance companies and what to do when a car insurance company refuses to pay. The only thing that motivates an insurance company to do anything is PROFIT. Some people are motivated by the proverbial carrot. This means they seek pleasure from things like helping other people.
Insurance Companies Only Respond to Punishment via Profit-Loss.
While others are motivated by the proverbial stick. This means threats of loss or harm motivate them. For example, if you want your kids to clean their room, you can either offer a reward or threaten a punishment.
2. Threats of Profit-Loss Motivates Insurance Companies
Do you think altruistic goals motivate insurance companies? Like helping society and seeking justice for victims of someone else’s negligence? Or, does the risk of losing money motivate insurance companies? When a car insurance company refuses to pay, you need to threaten them with something that will put their profits at risk.
Here’s the Deal: Insurance Companies Don’t do the Right Thing, they Only Do Things to Increase Profit.
If you and your personal injury attorney believe insurance companies do the right thing and pay claims, ask yourself if you even need an attorney. If you believe insurance companies do the right thing, won’t they gladly pay you the full value of your loss?
Threatening them is the Only Way to Get a Response.
Or do you think you need to threaten them? Threatening to take something away, like profits, will motivate them to pay the full value of your claim.
Knowing the 3 D’s of Insurance Company Tactics will help you understand the process:
3. Insurance Mantra: Deny the Claim, Delay the Claim and Defend the Claim
First, an Insurance Company May “Deny” any Responsibility for Your Losses.
Quite commonly after a crash when you call the at-fault driver’s insurance company, you may get the run-around. Even when liability is obvious, such as when you are hit from behind. The adjuster might tell you the insurance company is denying liability until they get some information from their insured. For more information on how to deal with insurance adjusters, click here.
They Will Tell You to Get Lost, Or They Need Something from You First.
They will say, well, we have not been able to contact our insured to get any information from them, therefore we won’t look at your car, or consider your injury claim. Or they want a recorded statement from you before they will do anything. Their first response just may be to tell you to take a hike and they are not going to pay a penny.
When a car insurance company refuses to pay, at our office we don’t waste time. We talk with our client and decide if we should file suit now. Why should we wait around for the insurance company to maybe change their mind?
If they Don’t Want to Pay, Don’t Wait. File a Lawsuit Immediately.
Why not file a lawsuit immediately and get the ball rolling. After all, once a lawsuit is filed, our team gets to take a formal statement from the at-fault driver under oath by taking their deposition. If you need help finding a lawyer who will fight for you all the way to trial, click here to read a guide on how to choose a personal injury lawyer.
Second, an Insurance Company will “Delay” the Claim by doing the Following:
If you try to settle your claim on your own and you ask the adjuster to make you an offer, they will usually reply that they need more information. When a car insurance company refuses to pay, they will start delaying your claim, hoping you will give up.
They Will Send You on a Wild Goose Chase to Get Documents for Them that They Don’t Actually Need.
They love to ask the injured person to run all around and collect tons of documents for them that they don’t really need to make you an offer. And when you provide them with what they ask for, they say thank you and then ask for something else.
Then when you give them that item, they want another thing. They are always asking for more stuff from you. By giving you the run-around, the insurance company buys themselves time.
They Delay Your Claim so They can Accrue Interest on Your Money.
They also create frustration and aggravation on your part by asking you for ridiculous things to keep you busy while they collect interest on your money.
How to Deal with the Delays When a Car Insurance Company Refuses to Pay:
So, how do we at MattLaw deal with the delay tactic? We give them all of the information they need to make a fair evaluation of your claim. Then we give them a firm deadline to either pay and resolve the claim. When a car insurance company refuses to pay we will file suit and seek all of our clients’ damages through the court process.
We Give Them Everything They Need Up-Front and Set a Firm Deadline to Pay or We File a Lawsuit.
If they try to send us on a wild goose chase for records and documents, we will often times give the insurance company a signed medical records authorization from our client that is only good for 30 days. We tell them, “go get anything you want with this release.”
Almost every time we send them a release, they never request a single document. Insurance companies are not willing to spend their time, energy and money to obtain records to fairly evaluate your claim. They just want to delay any payments and collect interest on your money, or hope that you give up and drop your claim altogether.
Third, Once a Suit is Filed, Insurance Companies Fight Hard to Defend the Claim.
The third tactic of “Defending” your claim is that once a suit is filed. They fight hard to not pay fair value for your claim. Most insurance companies, at least the common car insurance companies have created their own law firms. When a car insurance company refuses to pay, they will defend the claim as long as possible.
Insurance Companies Set-Up Law Offices and Hire Attorneys to Defend Claims.
They set up a law office, and then hire attorneys to work for them, and they are actual employees of the insurance company. The insurance companies have done this to save themselves money. They used to hire private defense attorneys who would commonly defend insurance companies.
They Used to Hire Private Law Firms, but They were Spending More Money than they Wanted.
But over the years they felt like they were spending too much money by hiring independent attorneys to defend them. So they decided to start their own law firms and hire employees. They pay lawyers a set salary to defend the cases brought against them.
The insurance defense lawyers may defend your case vigorously. They may pay CME doctors hundreds of thousands of dollars a year to examine injured people and give opinions that the victims were not hurt from the case.
Insurance Companies have Teams of Experts they Pay to Say Whatever they Want about Your Claim.
If the property damage is slight to the cars, the insurance company might hire their favorite engineers who will try to say that you can’t be hurt in a car accident unless there is more property damage.
The insurance company might hire a team of surveillance people to try and catch you doing something you should not be doing. They will look at your Facebook page and try to find things that might indicate you are not hurt from this accident.
Bottom Line: They Will Defend Your Claim to Hold on to Your Money as Long as Possible.
The bottom line is that they insurance company may defend your case all the way through a jury trial, and sometimes beyond that into appeals because all they want to do is to hold onto your money as long as they can so they can maximize their profits.
4. Insurance Companies Delay Paying Legitimate Claims to Maximize Insurance Company Profits
Insurance companies operate from a position of maximizing profits. So, maximizing profits requires holding your money as long as possible by denying, defending and delaying claims. Delaying claims includes denying responsibility, gathering surveillance, and hiring defense lawyers.
You Need to File a Lawsuit.
In the end, when a car insurance company refuses to pay, you need to bring out a big stick. File a lawsuit. Threaten them with something that will cause them to lose profit. So, you have to let the public, your community, decide what is fair compensation. You do this by using the American Jury System.
How to Take Control of Your Claim and fight back from the Insurance Company tactics:
Hiring the right lawyer will make a difference in how your claim is handled. By hiring an aggressive, board certified civil trial lawyer that actually will file a lawsuit and go to trial puts the insurance company on notice immediately that they better take your claim seriously, or else they may end up facing a jury. As we know, the insurance company carefully monitors lawyers track records.
Insurance Companies Will Value Your Claim Based on the Lawyer you Hire.
When you hire a lawyer who has a good reputation for keeping his word and rejecting low offers and insisting on going to trial, the insurance company will pay more. They pay less on a claim handled by a law firm that hardly ever files a lawsuit. Or if the law firm files suit, they don’t follow up and take the case to trial. Instead takes the best offer at mediation.
Insurance Companies Hate Risk and Don’t Want to Lose Control of Your Claim
Insurance companies are only at risk when they lose control of the value of your case. And the only time they experience any risk is when a jury gets to decide the value of your claim. When a car insurance company refuses to pay, you need to take away their control of your claim.
Think about this, when they are negotiating, they have your money, and they have a lot of control. They can pay you more and close the file. Or, they can fight and keep your money until you finally take steps to make them pay you.
Going all the Way to a Jury Trial is the Only Way to Take Control of Your Claim.
Keep in mind that insurance companies are never forced to pay any injury claim until you have a Court Order called a Final Judgment telling them they must pay you. Until you have that in your hand, they only pay if and when they want to. Filing suit is how you take control of your case.
5. Insurance Companies Rate Lawyers’ Ability to go to Trial and their Trial Record.
The insurance industry keeps track of lawyers track records. The insurance companies know which lawyers are bluffing, in other words, they only threaten to file a lawsuit and hardly ever do. If they do file a suit the insurance companies know which lawyers will settle rather than fight. When a car insurance refuses to pay, it may be due to the lawyer you hired.
Beware of Big Advertising Firms that Settle Cases for Low Values.
Some law firms or law groups advertise quite a bit and they resolve and settle cases quickly and for lower value than they might be worth if your case was handled by an attorney who has a history of filing lawsuits and taking insurance companies all the way to a jury trial.
Insurance Companies also Track All of the Doctors and Medical Clinics You go to.
Because all medical billing is done electronically every doctor and medical clinic have a Federal Tax ID number. This ID number is on every one of your medical bills. Insurance Companies compare the Federal Tax ID number of your attorney and your doctors to help set a value on your claim.
Beware of Lawyer Referral Services. They Use Your PIP and Decrease Your Case Value.
They keep track of doctors reputations. When a person goes to Ask Gary clinics or 411Pain, the insurance company already knows that these high volume clinics have a reputation of inflating the medical bills, and not providing much care. If your lawyer has a low evaluation by the insurance company, and your doctors also have a low score, then they will place a lower value on your case.
The Strength of Your Attorney and Doctors Will Determine Your Case Value.
Think about it: what a great way for insurance companies to save money. If they can accurately predict the strength of your attorney and doctor, why would they pay a penny more than they have to? They can tell from handling thousands of other claims that certain attorneys won’t fight hard and they offer them less money.
If they can tell from the hundreds of thousands of medical claims that come in from medical clinics that just burn and churn the no-fault insurance, then they know these doctors medical records won’t be very good. When the case ends up in a trial, the doctors probably won’t present as well as other doctors who don’t work in a medical mill setting.
When a car insurance company refuses to pay, it may be due to the doctors you are seeing for your injuries. So, choosing the best doctors is very important to the value of your injury claim. For a simple guide on how to find a doctor after a car accident, click here.
6. Insurance Companies’ Weakness: The Courtroom for a Trial
Insurance companies are weakest when they are in a courtroom. They should pay you fair value to avoid being at risk of losing at trial. However, quite often some adjuster far far away, with the use of a computer and software designed by the insurance industry has placed a value on your claim and they won’t pay more. When a car insurance company refuses to pay, exploit their weakness by taking them to trial.
Insurance Defense Lawyers Commonly Admit they Wish the Insurance Company Would Pay More to Settle Claims.
It is not uncommon for defense lawyers to confess to judges, mediators and even us plaintiff lawyers that they wish the insurance company would pay more money to settle a case. But since they can’t write the check, defense lawyers have to keep fighting to hold down the value of your claim. The defense lawyers are often overworked, have too many files.
Insurance Companies Often Don’t Treat their In-House Lawyers Nicely.
The insurance companies tend to not pay them as well as private law firms. They often do not provide adequate support staff and resources for their employee/attorneys to do well in a trial either. Remember what motivates insurance companies: filing a lawsuit and going to trial.
When a car insurance company refuses to pay, take them to court. Insurance companies will not respond quickly to your claim unless you pressure them with a jury trial.
7. What to Do When a Car Insurance Refuses to Pay: Jury Trial
Sounds easy enough, right? However, trials are not very easy. That is why so few personal injury lawyers ever go to trial. Going to trial scares most lawyers. Most lawyers settle cases for less than the value of the claims.
Very Few Lawyers Ever go to Trial because it is Extremely Hard.
When a car insurance company refuses to pay, Motivating them requires top dollar:
- Good liability, which means it’s easy to determine who caused the accident,
- Harms and losses caused by the accident, which your doctors and medical records prove
- You need an experienced personal injury lawyer who has the guts to walk into court and try your case.
You Need a Lawyer who knows the Law, Medicine, and Science of Personal Injury Claims that will go to Trial.
Find a lawyer who knows the law, medicine, and science of personal injury claims. Also, find a lawyer who can communicate effectively to the jury. Believe it or not, the attorney you hire can make a big difference on how much your case is worth. As well as how fast you will be paid.