Auto Insurance Companies Strategy to Limit Car Accident Injury Compensation – Deny, Delay, Defend

How Insurance Companies Profit by Limiting Payouts

Brooksville, Florida – Auto insurance companies like Allstate and State Farm have adopted a tough take-it-or-leave-it strategy when dealing with paying for medical bills and lost wages as the result of a car accident.

According to CNN, the result has significantly increased the profits for insurance companies and left the accident injury victims with little, if anything at all.

An 18-month investigation looked into minor-impact soft-tissue injury crashes across the country. It revealed a strategy used by insurance companies to limit payouts to victims of common car collisions. The approach is known as: deny, delay, and defend.

Insurance companies, including Allstate and State Farm, seek to limit their payouts by applying the three D’s: denying a claim, delaying the settlement of the claim, and defending against the claim in court.

A Real-Life Example: The Cost of Delayed Justice

CNN highlighted a case involving a woman from New Mexico. She suffered neck and back injuries after being sideswiped by a driver insured by Allstate, the second-largest auto insurer in the U.S. After three years, Allstate offered her $15,000. That amount was just over half of what she needed to cover lost wages and medical bills.

The $15,000 “take it or leave it” offer covered only a fraction of her total damages. Allstate made the offer to settle the claim as cheaply as possible. With no other choice, the woman took the case to court. She was ultimately awarded $167,000 plus interest.

However, as the article goes on to show, some accident victims are not so lucky. CNN found that if you’re injured in a minor car accident, auto insurance companies often challenge medical claims. They may offer low settlements and drag court cases out for years. They actively work to persuade jurors and the public that they are fighting fraud in the car insurance industry. However, documents examined by CNN reveal the actual motive behind these hardball schemes is profit. Both Allstate and State Farm have gone to great lengths to keep these documents under wraps.

Protecting Your Rights After a Car Accident in Hernando County

If you have been injured in an auto accident in Spring Hill, Brooksville or anywhere in Hernando County, you need to speak to the Hernando Injury Lawyers at Whittel & Melton so that you can fully understand your rights. Unfortunately, most insurance companies refuse to provide accident injury victims with the fair compensation they are entitled to.

You should understand that most settlements include a form that releases the negligent party from any further responsibility. If you develop serious medical issues related to the accident after you accept the offer, you will likely be unable to request additional compensation. Before accepting a settlement offer, talk to the Hernando County Injury Lawyers at Whittel & Melton.

Talk to a Hernando County Injury Lawyer Today

If you have sustained any type of injury in an auto accident in Hernando County, contact the Hernando Accident Injury Attorneys at Whittel & Melton online or call 352-666-2121.