The Role of Insurance Companies in Car Accident Claims
Request Free ConsultationYou were in a car accident with another driver. You know they caused the incident, and the police report documents it. What is the role, then, of the insurance company in the car accident claim? Insurance companies are responsible for paying damages caused by their policyholders, but there are numerous steps throughout the claims process. A car accident lawyer in Nashville can assist with insurance companies after a wreck. Contact us today at (615) 864-0343.
They Defend the Policyholder
At the core of what an insurance company does is defend its policyholders. That means they take every step possible to demonstrate that the policyholder did not cause the accident, and therefore, should not be liable for the losses. This “duty to defend” is a critical aspect of the case. Even if there is substantial evidence against the policyholder, the insurance company will still try to minimize the compensation.
They Pay for Damages
The insurance company is also responsible for paying for any damages deemed the policyholder’s responsibility, up to the amount of coverage provided in their policy. Many insurance companies have limitations, and policies will have components in them called exclusions to limit specific types of coverage. However, if your claim falls in line with the coverage the policyholder purchased, they have a duty to pay those damages to you.
They Will Question Your Evidence and Statements
The insurance company will ask questions and seek to disprove any claims you make. They may:
- Deny claims you do not back up with evidence
- Seek clarification about components of your claim that may be redundant or unclear
- Require you to provide documentation of injuries, severity, and other losses
- Demand a third-party evaluation of your medical condition or losses
- Require you to provide evidence of pre-existing conditions
Insurance companies tend to ask a lot of questions. The questions they ask are those that stem from areas where they believe they can find weakness. If you stumble, make statements that are misleading or taken out of context, or lacking in authenticity, those can be used against you.
Injured in a Car Accident?
They Make Decisions About the Value of Your Claim Payment
A claims adjuster, working for the insurance company, will work to value your claim. They will seek verification of the losses, including evidence of value, and attempt to find reasons to reduce the compensation paid. That is more challenging to do with economic damages than with non-economic damages. However, insurance companies that believe they can get away with denying coverage or limiting claim value, will.
They Represent the Policyholder in a Court of Law
If a settlement does not occur, the insurance company will represent the insured party in a lawsuit you file against them. They pay for the personal injury attorney in Nashville, TN and seek to build a strong claim against you in the case. The insurance company will use its in-house legal team to build a case against you or, depending on the situation, may take steps to settle.
The role of the insurance company in a car accident claim is critical. Under TN Code § 28-3-104, you have just one year from the date of the incident to file a lawsuit. You can expect the insurance company to do whatever it takes to make it impossible for you to recover damages.
Understanding the role of the insurance company may help minimize your risks. Victims often feel insurance adjusters are helpful and want to be fair. Yet, that is not the reality of the situation.