After an accident, the next action is to reach out to the insurance company to begin the claims process. Typically, the insurance company will collect details about the incident and notify the victim that they are more than happy to work directly with them and an attorney is unnecessary. While an attorney is not always necessary to process a claim, there are often a handful of reasons why insurance companies discourage their participation.
Representation
The main reason an insurance company might discourage participation by an attorney is representation. In short, the insurance company serves as a representation for the responsible party. The lesser the responsibility assigned to their customer, the less money they have to pay for a claim.
For this reason, it is often in the insurance company's interest to collect as much information from the accident victim. This information is then used to reduce their client's liability. Not only is it essential to have an attorney participate in the process, but it is also best to speak with an attorney before you talk with the insurance company.
Claim Totality
Insurance companies sometimes prefer an attorney-free claims process because it increases the likelihood that the victim will settle the claim at a reduced value. A common mistake made during the claims process is to only look at the current costs associated with the accident, not the totality of the claim.
For example, depending on the circumstances, the victim might have future medical treatments to complete, or their ability to work may be altered, resulting in a reduced earning capacity. Whatever the case, an attorney will assess the existing expenses associated with the accident and the future expenses their client may incur.
Payment Terms
Unfortunately, insurance companies sometimes rely on a stalling tactic when settling claims. The idea behind this process is to extend the settlement process to a point where the victim will be willing to settle for less than the claim is worth just so the process can be over.
An attorney cannot necessarily force an insurance company to settle quickly, but they can use their knowledge of the law to encourage the insurance company to move forward faster so that their client can get access to the compensation they need faster.
The above represents some reasons why an insurance company might discourage an accident victim from securing an attorney. If you have been involved in an accident, conduct your research to determine what is best for you.
Contact a local car accident attorney to learn more.
Share19 December 2022
When I was a child, my father was the pastor of a small evangelical church in my hometown. I always enjoyed going to church in order to play with my friends. One of these friends suffered a horrific accident at a local gas station one day. As he was walking towards the entrance to the gas station, he was struck by a vehicle. His leg was seriously injured during the accident. To help with the expenses of recovery, his father hired an accident and personal injury attorney. This professional helped my friend’s father sue the person who struck his son. On this blog, you will discover the advantages of hiring an accident and personal injury attorney after incurring injuries from a devastating accident.