Why you need to speak with an attorney if you are involved in a vehicle accident.

Why you need to speak with an attorney if you are involved in a vehicle accident.

1. All major insurance companies are for profit businesses

   All major insurance companies are for profit businesses. This results in a system that will not serve a client’s best interest. Also, the term insurance ‘agent’ is misleading, because insurance agents have no duty to their clients. In theory, an agent only seeks a client’s best interests, IE a sports agent negotiating a large contract for an athlete. In the insurance world, this fiduciary responsibility does NOT exist. Insurance agents act conversely to a client’s interests by talking down the value of a claim; pressuring clients to take a reduced settlement; or even dropping the claim all together. As sickening as it sounds, insurance companies reward its employees for this to increase corporate profit.

2. example

   Imagine you are in a car accident. You have insurance A, and the other diver has insurance B. As a result, your insurance company says it will negotiate on your behalf for your medical bills and property damage. Likewise, insurance company B will tell its client the same. This sounds good, but in reality, insurance companies A and B will work together. The goal is to settle quickly without a lawsuit because this benefits the insurance companies. Unfortunately, this harms clients and they could left cover future medical costs on their own.

3. Unfortunate reality

   While this sounds like fraud, or illegal, it’s not. Insurance laws are mostly a patchwork of state laws that do not adequately protect insurance purchasers. Insurance companies exploit this because there is no risk to them. The only risk to the insurance company is a lawsuit regarding the original accident, not their handling of the accident. Lawsuits can be expensive and result in huge payouts from insurance companies. However, there is little risk of a lawsuit when a client is unrepresented.
   
   The majority of Americans are not lawyers, and could never navigate the legal landscape to properly file a lawsuit and represent themselves. Conversely, insurance companies are settling and litigating claims every day, and have decades worth of information and experience. This results in insurance companies having a massive advantage over an unrepresented individual and result is an unrepresented individual never being offered a fair settlement.

4. Hire a Lawyer

   Clients are leery to hire a lawyer, and they should be. Lawyers have a terrible reputation, and most lawyers who take cases on a contingent bases require 1/3 of any money recovered. However, clients who hire an attorney will be given settlement offers exponentially higher because the power balance is corrected and there is a real risk for a lawsuit (us lawyers love lawsuits, its why we became lawyers). This effect is true whether a client goes to a small or large law firm for representation. Getting representation shows the insurance company you are informed on the value of your case, and that you now have someone willing to sue on your behalf.
   
   Unfortunately, there is also a stigma when hiring a lawyer. Individuals fear the perception of others when contacting an attorney after an accident. This is misguided. Attorney client relations are strictly confidential. If you are hurt in an accident, and contact an attorney, the only way anyone will find out is if you tell them. Additionally, any settlement you received is also kept strictly confidential.
   
   If you have read this post, hopefully I have convinced you to contact at attorney before accepting any settlement from your insurance company. Initial consultations are free, and will risk you nothing. If you are not convinced, I wish you the best of luck.