After an accident, you will inevitably deal with insurance companies—both your own and the at-fault party's insurer. While insurance adjusters may seem friendly and concerned about your wellbeing, it is critical to understand that their primary goal is minimizing payouts. Insurance companies are businesses focused on profits, and every dollar they pay in claims reduces their bottom line.
At Rosenberg & Rodriguez Personal Injury Lawyers, we have over 100 combined years of experience negotiating with insurance companies on behalf of accident victims throughout New York. This guide explains how insurance companies operate, the tactics they use to reduce claims, and how to protect yourself.
Understanding New York's No-Fault System
New York operates under a no-fault insurance system for car accidents. This means that regardless of who caused the accident, you file a claim with your own insurance company for medical expenses and lost wages up to your policy limits. This coverage, called Personal Injury Protection (PIP), provides compensation without needing to prove the other driver was at fault.
However, no-fault coverage is limited. It typically covers medical expenses and a portion of lost wages but does not compensate for pain and suffering. To pursue non-economic damages and additional compensation, you must file a claim against the at-fault driver's liability insurance, which requires proving negligence and meeting New York's serious injury threshold.
Common Insurance Company Tactics
Insurance adjusters employ various strategies to minimize claim payouts. Recognizing these tactics helps you avoid falling victim to them.
Quick Settlement Offers
Insurance companies often contact accident victims within days of an incident offering fast settlements. These early offers are almost always far below the true value of the claim. Insurers know that many victims are stressed about medical bills and lost income, making them vulnerable to accepting inadequate compensation before they understand the full extent of their injuries.
Never accept a quick settlement offer without consulting an attorney. Some car accident injuries appear days later, and once you accept a settlement, you typically cannot pursue additional compensation—even if your injuries turn out to be far worse than initially apparent.
Recorded Statements
Adjusters frequently ask for recorded statements, claiming they need your account of the accident to process your claim. In reality, these recordings are often used to find inconsistencies or admissions that can be used to reduce or deny your claim. A nervous victim might accidentally say something that undermines their case.
You are not legally required to provide a recorded statement to the other driver's insurance company. Politely decline and consult an attorney first.
Disputing Medical Treatment
Insurance companies often challenge the medical treatment you receive, arguing that it was unnecessary, excessive, or unrelated to the accident. They may claim that your injuries were pre-existing conditions or that you are exaggerating your symptoms.
Thorough medical documentation from qualified providers helps counter these arguments. Following your prescribed treatment plan consistently also demonstrates the legitimacy of your injuries.
Surveillance and Social Media Monitoring
Insurance companies hire investigators to conduct surveillance on claimants, looking for evidence that contradicts injury claims. They also monitor social media accounts for photographs, posts, or check-ins suggesting you are more active than you claim.
A single photo of you smiling at a family event can be taken out of context to argue you are not suffering. Learn how to protect yourself by understanding how social media can affect your personal injury claim.
Shifting Blame
Adjusters frequently argue that you were partially or fully responsible for the accident. New York's comparative fault system reduces your compensation based on your percentage of fault, giving insurers incentive to inflate your share of blame.
They may claim you were speeding, distracted, failed to take evasive action, or contributed to your injuries by not wearing a seatbelt. Strong evidence from the accident scene helps counter these arguments.
Delaying Tactics
Some insurers deliberately delay claims processing, hoping that frustrated claimants will accept lower settlements just to resolve the matter. They may request the same documents multiple times, fail to return phone calls, or claim they need additional information before making a decision.
These delays can be particularly damaging when claimants face mounting medical bills and financial pressure from lost wages.
Lowball Offers
When insurance companies do make offers, they often start far below the claim's actual value. Adjusters count on claimants not knowing what their case is worth and accepting inadequate compensation. Without legal representation, many victims settle for a fraction of what they deserve.
Learn more about how insurance companies undervalue injury claims and strategies for fighting back.
How to Protect Yourself
Taking certain steps helps protect your claim when dealing with insurance companies.
Report Promptly But Carefully
Notify your own insurance company about the accident as required by your policy, but keep your statements factual and limited. Describe what happened without speculating about fault or providing unnecessary details about your injuries.
Do Not Sign Anything Without Review
Insurance companies may ask you to sign medical authorization forms, settlement releases, or other documents. Before signing anything, have an attorney review it. Broad medical authorizations can give insurers access to your entire medical history, which they may use to claim your injuries were pre-existing.
Document Everything
Keep detailed records of all communications with insurance companies, including dates, times, names of representatives, and summaries of conversations. Save all correspondence, and follow up phone conversations with written confirmation.
Do Not Accept the First Offer
Initial settlement offers are almost always negotiable. Insurance companies expect back-and-forth negotiation and start with low offers accordingly. Having an attorney negotiate on your behalf typically results in significantly higher settlements.
Understand Your Policy
Know what coverage you have and what benefits you are entitled to. Understanding your PIP limits, uninsured/underinsured motorist coverage, and other policy provisions helps you recognize when an insurer is not fulfilling its obligations.
When the Other Driver Is Uninsured
If the at-fault driver has no insurance or insufficient coverage, you may need to rely on your own uninsured or underinsured motorist coverage. New York requires insurers to offer this coverage, though drivers can reject it in writing.
Filing a claim with your own insurer can feel awkward, but your policy is a contract, and you are entitled to the benefits you have paid for. Learn more about what to do if the at-fault driver does not have insurance.
The Value of Legal Representation
Having an attorney handle insurance communications provides significant advantages. Insurance companies know that represented claimants are more likely to pursue litigation if fair settlements are not offered. This knowledge motivates better offers.
Attorneys also understand the true value of claims and will not be fooled by lowball offers. They can identify bad faith practices and take appropriate legal action when insurers do not negotiate fairly.
At Rosenberg & Rodriguez Personal Injury Lawyers, we handle all communications with insurance companies on behalf of our clients. We know the tactics insurers use and how to counter them effectively. Our contingency fee arrangement means you pay nothing unless we recover compensation for you.
Contact a New York Personal Injury Attorney
If you are dealing with an insurance company after an accident, do not face them alone. The attorneys at Rosenberg & Rodriguez Personal Injury Lawyers have the experience to protect your rights and pursue fair compensation.
We serve accident victims throughout Brooklyn, Queens, The Bronx, and all of New York. We offer free consultations and work on a contingency fee basis—you pay nothing unless we win.
Contact us today to discuss your case.