TL;DR: Key Takeaways

  • Insurance companies aim to minimize payouts and may use bad faith tactics to pressure you into giving up your claim.
  • Avoid giving recorded statements or signing medical authorizations without consulting an experienced attorney.
  • Insurance adjusters are trained to use your words against you and may undervalue or dispute your injuries.
  • Lawsuits are essential to hold insurance companies and negligent parties accountable; they are not frivolous.
  • Having a personal injury lawyer significantly increases your chances of receiving a fair settlement.
  • Protect your medical privacy by limiting access to records unrelated to your accident.
  • Fully disclose all injuries and symptoms to your doctors to ensure proper documentation.
  • Be honest throughout the claims process to maintain credibility and strengthen your case.
  • Don’t accept the first settlement offer; negotiate with legal help to maximize compensation for medical bills, lost wages, property damage, and other damages.
  • You have the right to fair compensation and legal support to navigate the claims process confidently.

Understanding How Insurance Companies Really Operate

When you’re involved in an accident, dealing with an insurance company can feel overwhelming. Insurance companies operate with one primary goal: to save money by minimizing the amount they pay out on claims. While you may expect your insurance company to be on your side, the reality is that their business model is built around reducing payouts, even when accident victims have valid claims for injuries, medical bills, and lost wages. That’s why consulting with a car accident attorney in Denver early in the process can level the playing field and protect your rights.

Understanding the claims process is essential to ensure you receive the compensation you deserve. Insurance companies may use a variety of bad faith tactics to avoid paying a fair settlement, such as delaying the process, disputing liability, or undervaluing your injuries. These strategies are designed to pressure you into accepting less money than you are entitled to. By being aware of how insurance companies operate and the tactics they use, you can better protect your rights and improve your chances of securing a fair settlement for your injuries and losses.

Navigating the Complex Claims Process

What to Expect from Insurance Adjusters

The claims process after a car accident can be confusing, especially when insurance adjusters start reaching out. Insurance adjusters may contact you soon after the accident, often requesting a recorded statement or asking you to sign a medical authorization. While they may seem helpful, it’s important to remember that their job is to protect the insurance company’s interests—not yours.

Protecting Your Rights During the Claims Process

If you’re contacted by an insurance adjuster, it’s best to politely decline giving a recorded statement or signing any documents until you’ve spoken with an experienced attorney. Your own insurance company may also be involved, and understanding your rights and obligations is crucial to avoid jeopardizing your claim. A personal injury lawyer can help you gather evidence, such as witness statements, accident reports, and medical records, to strengthen your case. With the right legal guidance, you can navigate the claims process more confidently and work toward a fair settlement that truly reflects the impact of your injuries.

Understanding key insurance company facts that can strengthen your claim can help you avoid common pitfalls and protect your interests throughout the process.

Fact #1: Giving a Recorded Statement Helps Their Case, Not Yours

Why Recorded Statements Are Risky

Insurance companies want you to give a recorded statement as soon as possible after your accident — often before you have the whole story. Holding you to your earlier testimony means they have more leverage to reduce the amount of money they have to pay. Many people think they have to give a recorded statement or that it is required before their insurer acts on their claim. When the insurance company asks you for a recorded statement, always delay doing so until you have retained a qualified personal injury attorney.

How Insurance Adjusters Use Your Words Against You

Why are recorded statements of your car accident such a bad idea? Oftentimes, a person will say something — or omit a detail — that can be used against them later. Insurance adjusters are trained to draw out speculations or details that compromise your claim, often by asking things that you have no way of knowing.

How can auto insurance adjusters twist your words? Let’s say they ask you how fast a vehicle was going when it hit you. If you greatly underestimate the speed at which you were hit, for instance, the insurance adjuster might say that the damage couldn’t really be that bad if it didn’t feel like the other driver was going so fast. Conversely, if you overestimate the speed you were hit, the insurance adjuster has leverage to say you are exaggerating your injuries. Finally, if you say you don’t know how fast they were going, the claims adjuster may say your testimony is unreliable. These tactics are designed to make it harder for you to prove the extent of your injuries or the validity of your claim.

The fact is: there is no “safe answer” in a recorded statement; this is why we highly recommend not offering any answers at all — until you have a car accident lawyer in your corner.

Fact #2: Insurance Companies Want Juries to Think Lawsuits Are “Frivolous”

The McDonald’s Hot Coffee Case Myth

Have you heard about the McDonald’s hot coffee case? Chances are, if you have, it was the work of a “tort reform” activist; insurance industry insiders often cite this case to drum up ire over “frivolous lawsuits” that allow people to shirk “personal responsibility”.

The Insurance Industry’s PR Campaign

The truth is: that the insurance industry relies on this public perception to keep their profits high. Through a multi-million dollar public relations campaign, they falsely claim that lawsuits are on the rise (they aren’t), that plaintiff verdicts will increase insurance premiums (they don’t), and that injured people are just scamming the system (false). For example, insurance companies often use high-profile cases to shape public opinion and make it seem like most lawsuits are unjustified. Insurance companies are for-profit entities; it is in their financial interest to make the public believe that any compensation for an accident is undeserved.

The Reality of Personal Injury Lawsuits

Most people do not realize how insurance claims actually work, and this misunderstanding often leads them to accept less compensation than they deserve.

Fortunately for injured people, the law is on their side. Colorado law stipulates that anyone injured through someone else’s negligence is entitled to financial compensation. Financial compensation is the very least that can be done to fix an unfortunate situation; these monies may go to medical bills, physical therapy, or prescription medication costs. In our many years of representing injured people in Colorado, we know the relief an insurance settlement can bring. It is a sad moment when an insurance company turns on its own insured, just to keep its profits high. Insurance companies try to minimize payouts through strategies like delaying claims, offering low settlements, or disputing the extent of injuries.

Understanding how to file a personal injury lawsuit can help you navigate the legal process when insurance companies refuse to offer fair compensation.

According to the Colorado Revised Statutes, injured parties have specific rights and remedies available when dealing with insurance bad faith practices.

When it comes to liability and responsibility, insurance companies may try to shift fault onto the injured party to reduce their payout obligations.

Understanding Insurance Bad Faith

“Bad faith” refers to an insurer’s attempt to renege on its obligations to its clients. This could be either through denying a policyholder’s legitimate claim, an undue investigation or a lengthy process in resolving that claim within a reasonable period. Bad faith also occurs when an insurance company: misrepresents their contract (either in the selling of a policy or in the avoidance of a payment); fails to disclose limitations or exclusions within an insurance contract; or intentionally misleads their policyholders about their business practices. There are multiple ways an insurance company acts in bad faith, such as unfairly rejecting or undervaluing claims to avoid proper payouts; if you suspect this of your insurance company, always consult an insurance bad faith attorney in your area to learn about your legal recourse.

The Importance of Lawsuits in Holding Insurance Companies Accountable

It is not uncommon for large companies — say for instance, trucking companies — to operate right at the margins of legality. To maximize profits, many companies provide the bare minimum (if that) in terms of care and maintenance of their fleet, or training and evaluation of their staff. Similarly, an insurance company’s motivation is often to minimize payouts, leading them to scrutinize and sometimes deny or devalue legitimate claims.

Can you imagine what would happen if they knew they could get away with more: if they knew any lawsuit against them would be thrown out as “frivolous”? When big businesses are not punished for evading their responsibilities, our Colorado roads become more dangerous for everyone. Part of law enforcement is providing a financial incentive for trucking companies, insurance companies, and other big businesses to look after the well-being of everyone, not just their shareholders.

In fact, Colorado law allows injured people to bring claims against multiple parties. This could mean an individual, an insurance company, a trucking company or broker, or even a municipality that failed to act with due care or provide a safe environment. A personal injury claim is simply a means to seek compensation for any damages caused by these negligent parties. We rely on these laws — and lawsuits — to encourage businesses to take responsibility for any damage they cause. When dealing with an insurance company, it is important to understand your insurance policy, as its terms and coverage limits can sometimes be manipulated in bad faith situations to reduce or deny rightful compensation.

Fact #3: Insurance Companies Don’t Want You to Talk to an Attorney

The Value of Legal Representation

Did you know that claimants who an attorney represents receive higher settlement values than claimants who are not represented? It’s true — and insurance companies know this. In fact, internal documents show that insurance companies actually evaluate your case based on whether or not you are represented and the caliber of your lawyer. Hiring a lawyer for your claim can significantly improve your chances of obtaining maximum compensation and protect your rights during negotiations or litigation. Legal professionals bring essential knowledge and expertise to settlement negotiations, which most individuals and insurance companies lack. A reputable law firm, such as those specializing in personal injury cases, can provide the resources and experience needed to fight for your best interests. Personal injury lawyers are best equipped to handle these types of claims and ensure you receive fair treatment.

Understanding what a personal injury lawyer does can help you make informed decisions about legal representation and what to expect from the attorney-client relationship.

How Lawyers Increase Settlement Values

A trial lawyer on your side increases your claim’s value, whereas the presence of a lawyer known for settling cases out of court will not increase your claim value as much. In most cases, claimants represented by experienced attorneys achieve better outcomes than those who proceed without legal representation. Most lawyers operate on a quality-over-quality basis, settling cases quickly and for low sums, because they do not want to take on the work and risk of a trial. Their business model serves themselves first, and their client second.

Why Should You Hire a Lawyer?

Having legal representation can lead to higher settlement values. A study from the Insurance Research Council (IRC) showed that average insurance payouts were much higher when a claimant had legal representation. The study consisted of 6,000 auto accident claimants and controlled for types of injury, financial losses, treatment received; and settlement offer. Those who had legal representation received 40% more in their settlement offers, on average, than claimants who remained unrepresented by legal counsel. A separate report by the IRC reported that a full 85% of all insurance settlements were awarded to represented claimants, and that these settlements were more than three times higher than settlements paid to victims without legal representation.

When considering the cost of hiring a lawyer, most personal injury attorneys work on a contingency fee basis, meaning clients do not pay any upfront costs and only pay legal fees if they win their case.

Understanding Medical Authorization and Your Privacy Rights

What Is a Medical Authorization?

After an accident, it’s common for an insurance company to ask you to sign a medical authorization. While this may seem like a routine part of the claims process, it’s important to understand what you’re agreeing to. A broad medical authorization gives the insurance company access to your entire medical history—not just records related to your accident. This information can be used to deny or devalue your claim, especially if they find evidence of a pre existing condition or prior injuries.

How to Protect Your Medical Privacy

You have the right to limit any medical authorization to only those records directly related to your accident and injury claim. Before signing anything, consult with an experienced attorney who can review the request and ensure your rights are protected. An attorney can help you avoid common pitfalls and prevent the insurance company from using your medical records against you, so you can focus on your recovery and your valid claim.

Fact #4: You Should Always Tell Your Doctors Everything on the First Visit

The Importance of Full Medical Disclosure

Another fact that insurance companies don’t want you to know is that the best way to get a fast and fair settlement is by fully documenting your injuries and symptoms in your medical history. Injury victims should take special care to ensure that their medical records clearly show that their injuries resulted from the accident. We recommend seeing a doctor as soon as you can after you have been injured or hurt, as it is crucial to begin the documentation process. When you speak to your doctor, tell them everything concerning you, even if it seems trivial or unrelated. Should any of your symptoms worsen, making note of them early on will give credence to your case, should your insurance company claim that you are malingering. Seeking and receiving medical treatment in a timely manner is often the only way your insurance company will take your injury seriously. (For the same reason, always follow your doctors’ medical advice, complete any prescription regimens, and avoid medical treatment gaps.)

This is why you should seek medical attention after an accident even if you think you’re not hurt – proper documentation from the beginning is crucial for your claim.

Avoiding Gaps in Medical Treatment

In the wake of an event like a motor vehicle crash, you will be preoccupied with one symptom or condition. Perhaps you are worried about having a concussion and seek treatment for concussive symptoms (perhaps lethargy, brain or tinnitus). If you are also experiencing shoulder or back pain, these issues may go unaddressed in those first medical exams — even though they were present.

When it comes time to make your claim, your insurance company can use those earlier medical exams against you and deny payment for your shoulder and back pain. In the best-case scenario, your medical exam history is your best defense; in the worst-case scenario, it becomes your downfall. This is why it is critical to give a full medical history, and a complete list of symptoms, at every medical examination. When it comes to your medical history, there is no such thing as “TMI”.

The American Medical Association emphasizes the importance of complete and accurate medical documentation for both patient care and legal purposes.

Fact #5: Insurance Companies Want to Make It Look Like You’re Lying

Understanding Malingering

Malingering means faking or exaggerating one’s injuries or symptoms for personal gain — and, if your case goes to trial, it’s often your insurance company’s trump card. Insurance companies often try to deal with claimants by pressuring them to settle quickly, sometimes before the full extent of injuries is known. The insurance claim process can be manipulated by insurers to minimize payouts or delay settlements. If your insurance company suspects that you are lying about your injuries, they will push the case to trial, and let the jury punish the dishonest injured person. Juries are notoriously unforgiving in cases where the plaintiff is found to be malingering — and rightly so!

The Importance of Honesty in Your Claim

Your insurance company will do everything in its power to make it look to a jury that you are lying or exaggerating. When you receive the insurance company’s offer, it is important to review it carefully and not rush into accepting it. Accepting an early offer may mean missing out on additional compensation for all your losses and damages. This is why it is critically important that you always tell the truth: to your insurance adjuster, to your doctors, to your lawyers, and, should the need arise, to your jury. Reputable law firms will not represent clients who they believe are malingering; not only would this be highly unethical, but it introduces far too much risk. Honesty is truly the best policy.

We hope these insurance facts are of value to you as you navigate your personal injury claim. Be aware that these facts do not just apply to auto insurance coverage; they also apply to health insurance claims, life insurance claims, and any instance where an insurance company has an incentive to delay or deny a full, fair payment to their policyholders. Personal injury lawyers can help protect honest claimants from these tactics and ensure their rights are upheld.

Evaluating and Responding to Settlement Offers

How Insurance Companies Make Settlement Offers

When an insurance company makes a settlement offer, it’s important to approach it with caution. Insurance companies often start with a lowball offer, hoping you’ll accept less than your claim is truly worth. They may use bad faith tactics, such as delaying payment, misrepresenting the law, or downplaying the severity of your injuries, all in an effort to avoid paying fair compensation.

Responding to Settlement Offers

Don’t feel pressured to accept the first offer you receive. A personal injury lawyer can review the insurance company’s offer, explain your options, and negotiate on your behalf to secure a fair settlement. Remember, insurance companies are focused on saving money—not on making sure you’re fully compensated for your injuries. By working with an attorney, you can level the playing field and ensure you receive the compensation you deserve for your medical bills, lost wages, and other damages.

Understanding the types of damages that may be recovered after a motor vehicle accident can help you evaluate whether a settlement offer truly covers all your losses.

Taking Control of Your Claim

Your Right to Fair Compensation

Dealing with insurance companies after an accident can be challenging, but you don’t have to face the claims process alone. By understanding your rights and the tactics insurance companies use, you can take steps to protect yourself and pursue the fair settlement you deserve. If you’ve been injured in a car accident, reach out to an experienced attorney for a free consultation. A personal injury lawyer can help you gather evidence, explore your legal options, and negotiate with the insurance company to maximize your compensation.

Moving Forward with Confidence

Remember, you have the right to fair compensation for your injuries, and an experienced attorney can make all the difference in your case. Don’t let insurance companies take advantage of you—get the legal support you need to secure the settlement you deserve and move forward with confidence.