BLOGS

Understanding How Insurance Companies Deny or Lower Claims

Why Hiring an Injury Lawyer is a Good Idea

When you’ve been injured in an accident, the last thing you want to worry about is dealing with insurance companies that deny or lower your claim. Unfortunately, many people face this reality every year when trying to recover damages for their injuries. In the following, you can learn why insurance companies deny or lower claims and why hiring an injury lawyer is a good idea to help you navigate these challenging situations.

Why Do Insurance Companies Deny or Lower Claims?

An insurance claim following a car accident is denied for several reasons. These include:

  1. Profits: Insurance companies are in business to make money. Their main goal is to pay out claims at the least amount possible while maximizing their premiums. When you file a claim, they consider it a possible loss of revenue. For this reason, they use various tactics to either deny your claim or offer you a lower settlement than you deserve.
  2. Ambiguities in the policy: Everyone knows that complicated language and legal jargon are in insurance policies, making it difficult to understand the policyholder’s rights and coverage fully. Insurance companies may use this language to their advantage, denying claims on technicalities or misinterpretations.
  3. Delay, delay, delay: Delaying tactics include lengthy investigations, so claimants grow frustrated and accept a lower settlement out of desperation. This can be especially problematic for those facing mounting medical bills and lost income.
  4. Unscrupulous tactics: Some insurance companies may intimidate claimants, pressuring them to sign releases too fast or deny claims without a valid reason. 
  5. Underestimating damages: Insurance adjusters are trained to evaluate claims and may underestimate the extent of your injuries. They might downplay the accident’s impact, resulting in a lower settlement offer that doesn’t adequately cover your losses.

Why Hiring an Injury Lawyer is a Good Idea

Hiring an injury lawyer to handle negotiations with the insurance company can end up with you recovering a much higher settlement because of the following factors:

  1. Legal expertise: Injury lawyers specialize in personal injury law and have extensive knowledge of the legal system and insurance industry practices. They can help you understand your rights, navigate the complexities of your case, and ensure that you receive the compensation you deserve.
  2. Skills in negotiating: Injury lawyers can negotiate on your behalf with insurance companies. They will work tirelessly to secure a fair settlement that covers your medical expenses, lost wages, and other damages.
  3. Investigations: Experienced injury lawyers have access to resources that can strengthen your case, including accident reconstruction specialists, medical experts, and private investigators. 
  4. Protection from unfair tactics: An injury lawyer will shield you from intimidation and harassment by insurance companies. They can spot and challenge unfair practices, ensuring you are treated fairly throughout the claims process.
  5. Contingency fees: Most injury lawyers work on a contingency fee basis, which means they only get paid if you win your case.

Dealing with insurance companies that deny or lower claims can be a frustrating experience. Even though you can file a complaint with the Mississippi Insurance Department, it might not be enough. These companies often employ tactics that leave injured individuals at a disadvantage. However, hiring an injury lawyer can level the playing field. They possess the legal expertise, negotiation skills, and resources necessary to fight for your rights and secure the compensation you deserve.

The Diaz Law Firm

In the event that your insurance claim has been denied or you are not receiving the compensation you are entitled to, contact the Diaz Law Firm. Call us at (601) 607-3456 or (800) 459-2222 for a free consultation to discuss your case and your options to recover fair compensation. Please feel free to contact us online as well.