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How Car Accident Settlements Really Work


Today’s insurance companies are businesses. Long gone are the days when they gathered from the many to protect the few. Instead, modern insurance companies’ goals are to maximize their profits. The easiest way for them to maximize their profits is to their reduce costs, and their biggest cost is paying claims. Therefore reducing the cost of claims is the name of the game.

Insurance companies will reduce the cost of your claim at each step of the claims process. The end result is large profits for the insurance companies.

First, the insurance companies will encourage you to use their “Direct Repair Program” (DRP) auto repair shops. These DRP auto repair shops agree to accept a flat rate from insurance companies for work performed. However, these rates are so low that many of these DRP repair shops have to use aftermarket or reconditioned parts. These aftermarket parts reduce the resale value of your car, and sometimes are even unsafe. However, this arrangement saves the insurance companies a lot of money on repair bills.

Next, the insurance company will tell you that repair costs for your car were so low that you could not have been injured in the auto accident, or not seriously injured. The insurance company may go so far as to hire an accident reconstructionist, who will use your low car repair bill to support his conclusions that you were not injured in the car accident. This will save the insurance company even more money.

Next, the insurance company either won’t tell you about a Diminished Value Claim (DV) or they will just deny your DV claim. The fact that your car has been in an auto accident reduces the value of your car. The fact that it has been repaired with aftermarket parts, reduces the resale value of your car even more. However, by denying your Diminished Value Claim, the insurance company saves money.

Next, the insurance company will search the claim databases to determine if you have ever made another personal injury claim. If you have, the insurance company will say your injuries were caused by the previous accident and not related to this one. In this way, the insurance company can save money.
Next, the insurance company will investigate you, searching social media, to see if they can dig up any dirt on you. They may even hire a private investigator to film you to prove that you are not injured. Again, this can save the insurance company money.

Next, the insurance company will assess your chances of winning at trial, including the reputation of your lawyer. See Blog post, “Who Your Lawyer IS Matters More than You Think, and Here’s Why…” If the insurance company doesn’t think you have much of chance at trial, they will offer you less money.

Next, the insurance company will try to reduce the amount of your lost wages, especially if you are self-employed. If you are self-employed, the insurance company will ask for your tax records for the previous 5 years to prove your wage loss claim.

Next, the insurance company will reduce the amount of your medical bills. They will say your medical treatment was unreasonable, unnecessary, above the customary charges, or not related to the accident. Sometimes an insurance company will hire a medical doctor to review your medical records and render an opinion that your medical treatment was unreasonable, unnecessary, above the customary charges, or not related to the accident. When a records review is not enough, the insurance company may force you to see their doctor for a physical examination, after which their doctor will say that your medical treatment was unreasonable, unnecessary, above the customary charges, or not related to the accident. This is all part of their plan to save themselves money.

Next, the insurance company will comb through your medical records looking for any evidence of a pre-existing condition, mental health issue, or serious health condition that may affect your ability to go through a lengthy trial. See our previous Blog post, “Shocking Things that Insurance Adjusters do with Your Claim.” This will save the insurance company money.

Lastly, the insurance company will delay the settlement, hoping you let your Statute of Limitations expire, or expire yourself. Think I’m joking? Read our Blog post, “Shocking Things that Insurance Adjusters do with Your Claim” to see for yourself.

At each step of the claims process, the insurance company is trying to reduce your amount of money to increase their profits. You should not fight this battle alone. At GetMeJustice we are here to help. We will fight for the justice you deserve at each step of the way. Call us for your FREE Consultation with NO Obligation today at (800) 954-4014.

Attorney David Goldman has a strong belief that everyone should be treated fairly and those with the means should do what they can to bring justice in all areas of our society. That belief has led him to help Florida's injured from being taken advantage of by corporations and insurance companies. Since 1989 David Goldman has been fighting for the rights of Floridians both as an attorney and by personally supporting our community.

How Car Accident Settlements Really Work

Goldman Babboni Fernandez
Murphy & Walsh




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