If you or somebody you care about has been injured due to the careless or negligent actions of somebody else, you should be able to obtain compensation for your injuries. However, when you are dealing with insurance carriers, you need to be aware of the various tactics that these companies will use to avoid paying claims. Insurance companies are typically for-profit entities that are looking out for their bottom line rather than your best interests. Here, we want to discuss some of the tactics insurance carriers may use to limit your settlement in a car accident claim. It is important to point out that Minnesota operates under a no-fault insurance system concerning car crashes. This means that crash victims pursue compensation from their own insurance carrier in the aftermath of the incident.
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Insurance carriers in Minnesota are required to pay for valid claims made under their policy. If an injured person can prove that the insurance carrier denied a claim for no worthy reasoned, the court may order compensation from the company because of this wrongdoing under Minnesota’s bad faith insurance laws. Unfortunately, despite these laws, insurance carriers will still deny claims in an attempt to get away with not paying a settlement.
Insurance carriers use various stall tactics in an attempt to delay payments. There are often two goals in mind when a carrier delays payments. First, delaying a payment could convince a claimant to take a lower settlement offer because they need the money quickly. Second, an unreasonable delay could even convince a person to drop their claim. We want you to know that insurance carriers delay or deny claims so that they can hold onto your money in order to make more money. The longer they have cash in their system, the more money that they can make off of interest on that cash.
There are various ways that insurance carriers may try to pay less for your claim than it is worth. They may offer a very low settlement soon after the incident occurs in order to get you to settle for less. This often happens before you have had time to assess the severity of your injuries. An underpayment of claims is also a tactic used in the hopes that a claimant will accept an offer because they are in desperate need of the money. When you enter into a contract with the insurance carrier, this is an understanding that you can expect to be dealt with fairly and in good faith. Underpayment of claims could certainly be evidence of insurance bad faith.
If you or a loved one have been injured in a car accident caused by the careless or negligent actions of another driver, contact the Mankato car accident attorneys at Knutson+Casey. Our team has extensive experience helping injured drivers and passengers throughout Minnesota recover the compensation they are entitled to. We have the resources necessary to thoroughly investigate your case, determine liability, and obtain the compensation you deserve. Contact us today to discuss your case in a free consultation.