Why Insurance Companies Undervalue Car Accident Claims
After a serious motor vehicle accident, you might need to file a New York car accident claim to pursue compensation for your medical bills and crash-related losses. This means going through the no-fault claim process with your own insurance provider and, if your injuries are serious, filing a claim against the other driver’s insurer. Because insurers are for-profit companies, they often undervalue claims and pressure people to accept lowball car accident settlements.
The good news is that you don’t have to negotiate with insurance companies on your own. An experienced car accident attorney can help you determine a fair settlement value and advocate on your behalf. If you have an attorney who understands why insurance companies undervalue car accident claims and the common tactics they use, you can negotiate more effectively for full compensation.
Common Reasons Insurance Companies Undervalue Car Accident Claims
Insurance companies use a variety of approaches to minimize payouts on injury claims. An insurance adjuster might justify assigning a lower value to your claim by:
- Disputing the Severity of Your Injuries – The insurer may argue that your medical records don’t support the level of pain, disability, or future medical needs you claim.
- Blaming Pre-Existing Conditions – Adjusters may contend that an earlier injury or degenerative condition, rather than the crash, caused some or all of your symptoms.
- Questioning Medical Treatment – The insurer may use gaps in care, delayed treatment, or medical treatment the insurance company considers unnecessary to challenge your claim.
- Disputing Fault – An insurance company may argue that you share responsibility for the collision to justify a low offer.
- Ignoring Future Losses – Low settlement offers may fail to account for your need for ongoing medical care, reduced earning capacity, or long-term limitations.
- Using Incomplete Information – An insurer may make a first settlement offer before the full extent of your serious injuries and lost income becomes clear.
What Evidence Do Insurance Companies Look at When Valuing a Claim?
When investigating to determine car accident claim valuation, an insurance company may review a wide range of evidence, including:
- Medical records, diagnostic imaging, and future treatment recommendations
- Police reports and other documentation from the crash scene
- Photos or videos showing vehicle damage, injuries, and road conditions
- Proof of lost wages or reduced earning capacity
- Statements from other drivers, passengers, and eyewitnesses
- Prior medical records that may reveal pre-existing conditions
- Insurance policy limits and available coverage
Insurers may also examine whether you received consistent treatment and whether the evidence clearly connects your injuries and losses to the collision.
How New York Law Affects the Value of Your Car Accident Claim
Car accident claims filed in New York are governed by relevant state laws that can affect what compensation is available and how much you might ultimately recover. New York uses a no-fault insurance system. That means you initially file a claim against your own Personal Injury Protection (PIP) policy to cover your qualifying medical expenses and lost earnings up to $50,000, regardless of who caused the automobile accident.
In accident cases involving serious injuries, an injured person’s medical bills may exceed the PIP coverage limits. You may have a right to step outside the no-fault system and file a personal injury lawsuit. For example, if your injuries meet the serious injury threshold, you may have a right to file a New York car accident claim to pursue compensation for excess financial losses, as well as for pain and suffering and other non-economic losses.
In personal injury cases, the determination of fault has a great bearing on the potential outcome of your case. Under New York law, if you were partially at fault, you may still be able to seek compensation. However, any damages awarded will be reduced in proportion to your share of responsibility.
How to Tell If a Car Accident Settlement Offer Is Too Low
Now that you have some understanding of how insurance companies value car accident claims, how can you tell whether you’ve been given a lowball settlement offer?
The truth is, you likely won’t be able to tell on your own. An experienced personal injury attorney who sees many insurance claims can review the facts of the accident and assess whether a settlement offer is reasonable. Insurance adjusters and their employers have a financial incentive to resolve claims for the lowest amount possible. Early offers may look reasonable but not reflect the full value of your claim, especially if you have ongoing medical bills.
The best way to protect yourself is by seeking the guidance of an experienced Queens car accident lawyer as soon as possible after a crash.
Can a Lawyer Help If the Insurance Company Undervalues Your Claim?
If you’re worried about accepting a car accident settlement offer that seems low, The Tadchiev Law Firm, P.C., can help protect your legal rights. Our personal injury lawyers have over 120 years of combined legal experience and a track record of success, including six- and seven-figure settlements and awards in car accident cases. However, every case is unique, and past results do not affect future case outcomes. When you trust The Tadchiev Law Firm, P.C., with your case, we can help by taking the following steps:
- Thoroughly investigate the auto accident
- Develop a car accident claim valuation and submit a demand letter
- Manage all communications and negotiations with insurance companies
- File a personal injury lawsuit, if necessary, and pursue your case through the court system
We are proud of the feedback we receive from former clients who sought our legal representation and have been able to move forward with their lives after injury accidents:
“Thanks to Boris and his team for helping me with my car accident case. Great service and compensation! I highly recommend them” — Yanell R.
We know the period after a car accident can be highly stressful and confusing. Let The Tadchiev Law Firm, P.C., take the burden off your shoulders. We are here to handle your New York car accident claim while you focus on healing.
Contact Our Queens Auto Accident Lawyers to Help You with Your Claim
If you sustained serious injuries in a car accident caused by someone else and are struggling to recover financially, reach out to The Tadchiev Law Firm, P.C., right away. Our personal injury firm in Floral Park serves clients in Queens and the surrounding communities in New York City. We’re here to provide the personalized legal service you need and fight for full and fair compensation on your behalf. Contact us today to arrange a free consultation.
About the Author
Boris Tadchiev
Boris Tadchiev is the founding partner at The Tadchiev Law Firm, P.C. He focuses his practice on advocating for the rights of individuals and families in personal injury cases involving motor vehicle accidents, premises liability, and wrongful death. He also represents healthcare providers in complex no-fault arbitration claims.