Why Insurance Companies Are Not on an Injured Person's Side

If you've been injured in an accident, you might assume that the insurance company will be on your side and provide fair compensation for your injuries. Unfortunately, this is often not the case. As businesses, insurance companies’ primary goal is to minimize their financial losses.

This article explores the financial figures and statistics that reveal why insurance companies are not always on the side of the injured person and how representation by an attorney can make a difference.

Defending Claims: Insurance Companies' Financial Incentives

Insurance companies spend billions of dollars annually defending claims and minimizing their payouts. According to a report by the National Association of Insurance Commissioners (NAIC), the top 10 largest insurers in the U.S. alone spent billions on defense costs in 2023. This figure demonstrates the financial incentive for insurance companies to fight claims and reduce their liability.

Common Defenses Raised by Insurance Companies

Insurance companies frequently employ various tactics and defenses to dispute claims or reduce payouts.

Some of these methods include the following:

  • Denying liability: Insurance companies may argue that their policyholder was not at fault or that the injured party contributed to the accident.
  • Disputing damages: They may contest the extent of injuries or claim that the medical treatment was not necessary or related to the accident.
  • Using delay tactics: Insurers often employ delay tactics, such as requesting additional documentation or extending the negotiation process, to wear down claimants and encourage them to accept a lower settlement.

Representation by an Attorney: The Statistical Difference

Studies have shown that injured parties whom an attorney represents receive significantly higher settlement amounts than those who attempt to handle their claims independently.

For instance, a study by the Insurance Research Council (IRC) found that, on average, claimants represented by an attorney received settlements 3.5 times larger than those without legal representation.

The reasons for this may be that Plaintiffs with legal representation are more likely to:

  • Obtain a settlement or award: Plaintiffs represented by an attorney are more likely to receive a settlement or an award in their favor.
  • Navigate the legal process efficiently: Attorneys can help claimants avoid common pitfalls and procedural errors that could delay or jeopardize their claims.
  • Effectively negotiate with insurance companies: Experienced personal injury attorneys know insurance companies’ tactics. They can counter their arguments, leading to more favorable client outcomes.

Navigating Insurance Company Tactics: Why You Need a Personal Injury Attorney

Insurance companies are not always on the side of injured individuals, as their primary goal is to minimize their financial losses. They often employ various tactics and defenses to dispute claims and reduce payouts. Claimants represented by an attorney have a better chance of seeking a fair result and navigating the complex legal process efficiently.

If you've been injured and are dealing with an insurance company, it's crucial to have an experienced personal injury attorney on your side to advocate for your best interests and help you seek just compensation.

Schedule a consultation with Law Office of Justin A. Wallace, LLC by calling (410) 996-4488. We provide legal representation in Baltimore County and throughout Maryland.