Insurance companies insist on premiums being paid in full and on time or the policy is cancelled. However, when it comes to paying a personal injury claim, it’s an entirely different story. The goal of the insurance company is to pay as little as possible. If they can avoid paying anything at all to a Tennessee accident victim, that’s ideal.
Many people assume that insurance companies make most of their money from premiums paid by policyholders. That’s not true. Insurance companies invest the premium money, collecting interest and investment profits.
Warren Buffet, one of the world’s richest men and an extremely smart investor, loves the insurance company business model and owns several insurance companies. The “insurance float” refers to the difference between money collected in advance (premiums) and claims paid later. This float can amount to billions of dollars invested to benefit shareholders – not policyholders.
What does this mean to you? The longer an insurance company delays payment on your claim, the more money the insurance company makes from investments. Even short payment delays add up when the large number of pending claims are considered. Substantial personal injury claims can be delayed for years.
Insurance companies pay teams of lawyers to fight personal injury claims. When accident victims try to handle claims by themselves, these attorneys do their best to intimidate accident victims, throwing up roadblocks to delay a fair settlement.
What does this mean to you? Don’t let yourself be bullied by the insurance company into accepting an unfair settlement. Talk to an attorney before signing anything.
Insurance adjusters typically want to record everything, hoping your statements can be used against you later.
What does this mean to you? You have the right to refuse to be recorded and generally should. Adjusters may also attempt to convince you that hiring a lawyer won’t help you.
“Delay and deny” is a well-known insurance company negotiating tactic. The longer they hold onto the money, the more they earn from the float.
What does this mean to you? A denial may not mean that all is lost. An insurer has an implied duty to act in good faith and handle claims fairly and may have violated this duty.
The Insurance Research Council did a study and found that, on average, people received 3 1/2 times higher payments when they hired an attorney than when handling their claims alone. This was especially true for personal injury claims since these involve both legal and medical issues and can become quite complicated. About 85% of personal injury settlements are paid to accident victims with legal representation.
What does this mean to you? Small claims are settled every day by people handling it on their own. Not every claim needs a lawyer. However, when your health and future well-being are at stake, insurance companies have stacked the odds against those without legal representation. History has shown that insurance companies settle large claims for much less when people don’t have an attorney.
Some insurance companies treat claimants more fairly than others, but all have a strong financial motivation to delay and deny personal injury claims. When people represent themselves, insurance companies know they have a greater opportunity to control the outcome to their benefit. When it matters the most, an experienced personal injury attorney will work for what’s best for you.
After spending his secondary years of study at The McCallie School in Chattanooga, G Turner Howard III earned his BA at Tulane University. A member of the Tennessee Trial Lawyers Association, he received his law degree from the University of Tennessee College of Law. Before becoming an attorney, he earned a Master’s and Doctor of Divinity at Andrews Theological Seminary and Columbia Theological Seminary. He also served as a 1st Lieutenant in the US Army in Vietnam. With more than 20 years of experience, his firm has helped clients receive millions of dollars for personal injury, and in many cases, much faster than they ever expected.
