As a follow-up to a recent post, CNN has begun to uncover more claims that are being underpaid by insurance companies in minor crashes and the insurance companies philosophies behind their failure to pay appropriate amounts. Insurance companies are reaping the benefits of their low ball tactics while innocent victims of these crashes are forced to pay medical bills out of their own pockets even though they are insured.
So why do the insurance companies offer such low payouts? The reason is simple, offer low payments in hopes that the injured person will take what he can get because of fear of time and expense that will accrue if the offer is turned down and the claim is taken to court. And their philosophy seems to be working. The profits of the insurance companies continue to rise while the public’s premiums continue to increase as well.
Allstate and State Farm have been using these strategies since the mid-1990s. If their low ball offers do not settle the case then they attempt to make the injured person look like they are not actually injured and instead are trying to defraud the insurance company. This strategy in fact often works because jurors are made to believe that low impact accidents where there is little to no damage to the vehicle would never result in any type of significant injury.
Currently a partner with the McCallister Law Group, Marc McCallister first worked as a defense attorney at a large insurance defense firm where he defended area hospitals and physicians. He now concentrates on his areas of expertise, which include medical malpractice, nursing home abuse, products liability, premises liability, motor vehicle and wrongful death cases.
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