How Insurance Companies Evaluate Accident Claims

Insurance companies are businesses, and their primary goal is to minimize the amount they pay out on claims. Understanding how insurance adjusters evaluate accident claims can help you better prepare your case and avoid common pitfalls that could reduce your settlement.

The Claims Process

After you file a claim, the insurance company assigns an adjuster to investigate your case. The adjuster will review the police report, examine medical records, assess vehicle damage, and may take recorded statements from you and witnesses. Their goal is to determine liability and the value of your claim.

How They Calculate Settlement Amounts

Insurance companies use various methods to calculate settlement offers. They typically consider medical expenses (past and future), lost wages, property damage, pain and suffering, and the degree of fault assigned to each party. Many companies use software programs that apply formulas to these factors to generate an initial settlement range.

Common Tactics to Reduce Your Claim

Be aware of these common insurance company tactics: requesting a recorded statement early (before you fully understand your injuries), offering a quick lowball settlement, disputing the necessity of medical treatment, using your social media posts against you, and arguing that pre-existing conditions caused your injuries.

How to Protect Your Interests

To maximize your claim, document everything thoroughly, follow all medical treatment recommendations, avoid giving recorded statements without legal advice, don't accept the first settlement offer, and consider consulting with an experienced accident attorney who can negotiate on your behalf.