Facing insurance companies is one of the first things that comes to mind in the wake of an accident. Whether it’s a car accident, slip and fall, or another type of personal injury, knowing what to expect from the claims process is important. Insurance companies play a major role in determining the outcome of personal injury claims, and their involvement can significantly impact the compensation you may receive. As a personal injury lawyer will share, this process can feel overwhelming, but understanding the steps insurance companies take when managing claims can help you approach your case with confidence.
The Initial Claim Filing Process
After an accident, the first step in dealing with an insurance company is filing a claim. This involves reporting the incident to your insurer or the at-fault party’s insurer, depending on the circumstances. Insurance companies will typically ask for basic information such as the date, time, and location of the accident, as well as a brief description of the injuries sustained and any property damage.
During this stage, it’s crucial to be accurate and provide clear information. This initial report serves as the foundation for the entire claims process. The insurance adjuster assigned to your case will rely on this information to start investigating your claim.
Investigation Of The Claim
Once the claim is filed, the insurance company begins its investigation. The adjuster will review the details you provided and may gather additional information from various sources, including police reports, witness statements, and medical records. The goal of the investigation is to determine fault and assess the extent of damages, including injuries.
In many cases, the adjuster will visit the scene of the accident, inspect damaged property, and speak with involved parties. It’s also common for them to request an independent medical evaluation to better understand the nature of the injuries. These evaluations help the insurance company determine the appropriate compensation range for medical bills, lost wages, and other damages.
Assessing Liability And Damages
One of the key functions of the insurance company is determining liability, or who is at fault for the accident. In some cases, liability may be straightforward, but in others, the adjuster will have to analyze the evidence thoroughly to decide whether multiple parties share responsibility. Insurance companies often rely on state laws to guide their decisions regarding liability.
The insurance company will move to evaluate damages once liability has been determined. This involves calculating the financial impact of the injury, including medical expenses, lost income, and pain and suffering. Insurance companies use various formulas to estimate compensation, but these estimates can vary greatly depending on the details of the case. It’s important to be aware that insurance companies may offer a settlement that is lower than what you might be entitled to, so negotiation is a key part of the process.
Negotiating A Settlement
After the investigation is complete and damages are assessed, the insurance company typically makes an initial settlement offer. This offer is usually lower than what the injured party expects, as insurance companies aim to minimize their payouts. This is where negotiation comes into play. You or your attorney can present counteroffers and additional evidence to support a higher settlement.
Negotiations can go back and forth until both parties agree on an amount, or until the case escalates to a lawsuit if an agreement can’t be reached. If the case goes to trial, a judge or jury will ultimately decide on the compensation. However, most personal injury claims are resolved through settlement negotiations before reaching this stage.
Finalizing The Claim
Once a settlement is agreed upon, the insurance company will draft a settlement agreement, and the injured party will be required to sign it before receiving compensation. This agreement typically includes a release of liability, meaning the injured party agrees not to pursue further legal action related to the accident.
After signing, the insurance company will issue payment for the agreed-upon amount, closing the claim. While this process may take time, it concludes the claim, allowing the injured party to move forward with their recovery.
The Claims Process And What To Expect
To properly prepare, and make informed decisions, it’s important to understand the claims handling process when dealing with insurance companies. From filing the initial claim to negotiating a settlement, each stage of the process is crucial for securing the compensation you deserve. Attorneys like those at the Law Office of Daniel E. Stuart, P.A. can attest that having a knowledgeable legal professional by your side can make all the difference in navigating this process successfully.