How to Protect Yourself During Personal Insurance Investigations

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How to Protect Yourself During Personal Insurance Investigations

The likelihood of needing to deal with insurance companies after a personal injury claim is quite high. Insurance investigations can include nuanced negotiations and insurance adjusters who will be looking for reasons to deny your claim or reduce the value of your compensation.

Here are important things to know when dealing with insurance investigations.

A Demand Letter and a Reservation of Rights

When beginning the negotiation process with an insurance adjuster, the claimant must send a demand letter stating the monetary amount they would like to claim for their personal injury. If an adjuster does not respond within 2 weeks of the demand letter, you may call the claims department and confirm that the letter has been received and as for an estimated date of response. Adjusters will first respond with a reservation of rights which informs the claimant that an investigation has begun. This letter will also detail that payment will be withheld if the incident is not covered by the policy. The reservation of rights protects insurance providers against future claims because it recognizes that the accident was covered by the policy. These letters also hint to the claimant that the insurance provider may not pay for their loss and compel them to accept a settlement instead.

Common Insurance Denials

Misrepresenting Material

You must report to your insurance any, and all information to keep your insurance up-to-date. Purchasing a new car, or changing banks or residences are pieces of information that will change your insurance rates. Without reporting these to insurance, you can be accused of committing fraud and your claim will be denied.

Fraudulent and False Claims

Falsification of information is an obvious, but common reasons for an insurance claim denial. Many of these claims ask for more money than is deserved and can lead to a black mark on claimant’s record with any insurance companies.

Unlawful Acts

Drunk driving, stunt driving, or unlicensed driving are all reasons for your insurance claim to be denied. You may not be able to get coverage in the future for these reasons as well.

The Secrets of Insurance Adjusters

Settlements Are Ideal

Insurance adjusters are determined to settle claims to avoid court expenses and time. Insurance companies will nearly always push for settlement instead of going to court to avoid these litigation fees.

Insurance Adjusters Must Have Good Faith

It is against the law for insurance adjusters to act in bad faith during settlement negotiations. An insurance adjuster must justifying their offers, cannot withhold information or tamper with evidence. If any of the above is committed, an insurance adjuster can be legally liable.

Statements Can Be Used Against You

Insurance adjusters may record your statements to find self-incriminating information. When meeting with an adjuster, it is best to have a lawyer present to avoid the pitfalls of the adjustment process.

Contact Goodwyn Law Firm, LLC to represent you in any personal injury lawsuit or insurance claim.

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