3 Insurance Myths That Could Cost You Thousands
Key Takeaways
Your insurance company is a business, so understand your coverage and your rights, because they will try to pay you as little as you will accept.
An insurance company's first settlement offer is not automatically the full value of your claim. Your own policy may include coverage that helps when another driver lacks enough insurance.
An Orange County attorney can help identify damages, future expenses, and available insurance coverage, and you will end up with more money in the long run, than if you handled your case yourself.
Before accepting a settlement, understand exactly what you may be giving up.
After a car accident in Orange County, dealing with insurance companies can feel almost as stressful as the accident itself. You may be injured, dealing with medical bills, missing work, and trying to figure out what happens next. Meanwhile, an insurance adjuster may be calling you about your claim.
Unfortunately, there are several insurance myths that can cause accident victims to make expensive decisions before they fully understand their options.
Here are three of the biggest ones I want Orange County drivers to know about.
Myth #1: Your Insurance Company Is on Your Side
This is one of the most common insurance myths I hear.
Your insurance company may have a relationship with you, but remember that an insurance company is also a business. When you make a claim, the company has its own financial interests to consider.
That does not mean every insurance company or adjuster is acting improperly. California has rules governing how insurance claims must be handled, including requirements involving claim investigations, communications, and fair settlements.
However, you should still understand your own policy and what coverage may be available to you.
For example, California auto insurance policies can include:
Uninsured motorist coverage
Underinsured motorist coverage
Medical payments coverage
Collision coverage
Comprehensive coverage
Underinsured motorist coverage can be especially important when the driver who caused your accident does not have enough liability insurance to cover your injuries.
In other words, don't assume the other driver's insurance is your only option.
Myth #2: The Insurance Company's First Offer Is What Your Case Is Worth
Getting an insurance settlement offer can feel like a relief. You may think, "Great. They're offering me money, so this must be what my case is worth."
Not necessarily.
An insurance settlement should be evaluated based on the full picture of your claim, not simply the first number someone puts in front of you. California's Department of Insurance specifically advises consumers about their rights when dealing with claims and provides resources for people who disagree with an insurer's settlement position.
The bigger problem is that most people have no idea how to value a personal injury claim. And why would you? You've probably never been seriously injured in a car accident before.
Your claim may involve more than the medical bills you have today. Depending on the circumstances, damages can involve medical treatment, lost income, pain and suffering, and other losses connected to the injury.
That is why accepting an offer before you understand the full value of your claim can be a serious decision.
Myth #3: You'll Keep More Money If You Don't Hire an Attorney
At first, this seems logical. "If I don't have to pay an attorney, I'll keep more of the settlement."
But there is another side to the equation: what is the claim actually worth?
A personal injury attorney can investigate your accident, evaluate your damages, communicate with insurance companies, negotiate on your behalf, and identify potential sources of coverage you may not know about.
They can also look beyond the bills you have already received. Depending on your injuries, there may be future medical treatment, ongoing care, lost earning capacity, or other damages that need to be considered.
Of course, attorney fees are part of the decision, and every case is different. The important question is not simply, "How much does an attorney cost?" It is also, "What could I be leaving on the table without experienced representation?"
A qualified attorney can explain the potential value of your claim, the applicable fees, and your options so you can make an informed decision.
Don't Let an Insurance Myth Cost You
After an accident, you don't have to become an insurance expert overnight. However, you should understand what you're agreeing to before you accept a settlement or sign away your rights.
If you were injured in an accident in Orange County or elsewhere in Southern California, Action Accident Attorneys is here to help you understand your options.
Call our offices at (949) 860-7500 to speak with an experienced personal injury attorney who has handled hundreds of cases similar to yours. Your first consultation is free. Based in Orange County and serving clients throughout Southern California, we're ready to help you understand your claim and take the next step.
It's time to take action!
FAQs
1. Should I accept the insurance company's first settlement offer after an accident?
Not necessarily. Before accepting an offer, you should understand what damages and future expenses it covers and whether it fully addresses your claim. A personal injury attorney can help you explore your options.
2. Can my own insurance help if the other driver doesn't have enough coverage?
Potentially. Depending on your policy, uninsured or underinsured motorist coverage may provide benefits when the at-fault driver does not have enough insurance to cover your injuries.
3. Do I need a personal injury attorney after a car accident?
Not every accident requires an attorney. However, if you suffered significant injuries, your claim is disputed, the insurance company is offering less than you believe your claim may be worth, or the situation is otherwise complicated, consulting an attorney can help you understand your options.
4. Will hiring a personal injury attorney guarantee me more money?
No attorney can guarantee a particular settlement or outcome. However, an attorney can help evaluate your damages, identify applicable insurance coverage, negotiate with insurers, and account for losses you may not have considered. We, at Action Accident Attorneys, also work on a contingency fee, which means that we don’t get paid unless you do.
5. How much does it cost to talk to a personal injury attorney?
At Action Accident, the first consultation is free. During that conversation, you can discuss your accident and learn more about your potential options before deciding how to proceed. We, at Action Accident Attorneys, also work on a contingency fee, which means that we don’t get paid unless you do.
