Understanding Insurance Companies After an Accident: 7 Myths & Realities

The aftermath of a car accident or personal injury is often a chaotic swirl of emotions, physical pain, and logistical hurdles that are hard enough – a difficult insurance adjuster can add insult to injury. Learn more about insurance myths, the realities and limitations, and what to do after a car accident in Ontario. 

Car accident recovery isn’t always easy – and that goes far beyond the physical, mental, and emotional pain post-accident. 

Amidst the turmoil, you’ll usually encounter the world of insurance – a world often shrouded in confusing jargon, complex policies, and frustrating delays. Many people approach their insurance company with a mix of hope and apprehension, relying on assumptions and myths that often clash dramatically with reality.

At The Morris Law Group, we’ve spent decades guiding accident victims through the insurance claims process in Ontario. We’ve seen how misunderstandings about insurance companies can cause clients unnecessary stress, unfair settlements, and even denied claims. 

In this blog, we’re shining light on the claims process, separating common myths from the often-harsh realities, and giving you the knowledge you need to protect your legal rights and deal with these insurance companies for your best outcomes. 

Myth #1: Your Insurance Company is “On Your Side”

This is maybe the most pervasive and damaging myth we hear. While insurance companies often use friendly slogans and reassuring advertising campaigns, like “You’re in good hands” and “Like a good neighbor,” the fundamental truth is that insurance companies are businesses. The adjuster’s primary goal is to protect their bottom line, which means minimizing payouts on claims – and that negatively affects their customers and claimants.

Reality

While your own insurance company for accident benefits, in Ontario’s no-fault system, has a contractual obligation to provide certain benefits regardless of fault, their interests are not perfectly aligned with yours. They want to resolve your claim quickly and cost-effectively, which may not always be in your best interest, especially for long-term recovery. When dealing with the at-fault driver’s insurance company, the adversarial nature is even clearer. Their objective is to minimize their insured’s liability and your compensation.

Myth #2: The Insurance Adjuster is There to Help You

Insurance adjusters often appear polite, professional, and seemingly helpful – and some of them may genuinely be. They might express sympathy for your situation and promise to “take care of you,” but their primary job is to minimize payouts for your car accident insurance settlement. If they are doing their job well, it doesn’t serve your best interests. 

Reality

Adjusters are trained professionals whose main job is to investigate claims, assess the accident’s liability, and negotiate settlements for the insurance company. Of course,they protect the insurance company’s financial interests rather than yours. They often use tactics to hurt your claim, like:

• Downplaying your injuries. Suggesting your injuries are less serious than they are.
  

• Pressuring you to settle quickly. Offering a lowball settlement before you fully know the extent of your injuries or your legal rights.
  

• Requesting recorded statements. Using your own words against you to find inconsistencies or downplay your claim.
  

• Delaying the process. Dragging out the claims process, hoping you’ll become frustrated and accept a lower settlement.
  

• Surveillance. In more serious cases, they may use surveillance to track you so they can use your activities as proof to downplay your injuries. 

Myth #3: You Should Give a Recorded Statement Immediately

After your car accident, the insurance adjuster will almost always contact you and request a recorded statement. They may tell you it’s standard procedure or that it’s necessary to process your claim.

Reality

What is the process of an insurance claim?

You are not legally obligated to give a recorded statement to the at-fault driver’s insurance company. In fact, it’s generally advisable not to do so without first consulting with a lawyer. Your words can be taken out of context, twisted, or used to undermine your claim. While you have duty to cooperate with your own insurance company in any investigation of accident benefit claims, this cooperation does not extend to providing a recorded statement without legal advice. Even with your own insurer, it is prudent to have the advice of counsel.

Myth #4: You Have to Accept the Insurance Company’s First Offer

Think about any negotiations – the first offer is usually the worst. Insurance companies will often make low initial settlement offers, hoping that you accept them out of desperation or a lack of understanding of their rights.

Reality

You are under no obligation to accept the first offer. It’s often just a starting point for negotiations. A skilled personal injury lawyer can understand the true value of your claim because they fully understand factors like medical expenses, lost wages, pain and suffering, and any future care needs to negotiate for a fair settlement.

Myth #5: Your Claim Will Be Sorted Out Quickly

Many car accident victims think that once they’ve filed their claim, it’s just a quick wait for the insurance company to process it. Even if they’ve heard it takes a while, they’re still often surprised by how long it takes for compensation to hit their bank accounts – most take anywhere from months to years. 

Reality

How long does an insurance company have to settle a claim in Canada?

There is no fixed timeframe for settlements, which means many cases drag out. 

The insurance claims process can be notoriously snails-paced slow. Insurance companies often delay the process for various reasons if it suits them, like:

• Heavy caseloads. Adjusters often handle a large number of claims simultaneously, so you’re never their top priority.
  

• Investigation. They may conduct a lengthy investigation, gathering evidence and reviewing medical records.
  

• Negotiation. Settlement negotiations often take a lot of time, especially if there are any disputes about liability or the extent of your injuries.
  

• Strategy. Delay can, unfortunately, be a deliberate tactic to pressure you into accepting a lower settlement.

Myth #6: Insurance Policies Cover Everything

People often assume that their insurance policy, or the at-fault driver’s policy, will cover all their losses after an accident.

Reality

Insurance policies have limits, exclusions, and deductibles. Understanding the specifics of your policy and the at-fault driver’s policy is crucial.

• Policy Limits. This is the maximum amount the insurance company will pay out for your car insurance claim. If your damages exceed the policy limits, you may need to pursue other avenues to recover the full amount.
  

• Exclusions. Certain types of damages or situations may be excluded from coverage.
  

• Deductibles. Most policies come with deductibles, which is the amount you have to pay out-of-pocket before your insurance coverage kicks in.
  

• Uninsured/Underinsured Motorist Coverage. This is essential. It protects you if the at-fault driver has no insurance or not enough insurance to cover your damages.

Myth #7: You Don’t Need a Lawyer if You Have Insurance

Many people believe that having insurance means they don’t need a lawyer after an accident. You’ve paid for this insurance policy, so you don’t need any extra protection… right?

The Reality

Knowing how to deal with insurance companies after an accident is the best way to ensure your rights actually get protected during the process. Be informed, be cautious, and be unafraid to get solid legal advice from an experienced personal injury lawyer who knows insurance company obligations inside and out. The right lawyer gives them fewer places to hide and loopholes to exploit.

A great injury attorney can:

• Level the playing field. Insurance companies have endless teams of lawyers and adjusters working to protect their interests. While you don’t have the same deep pockets, one great lawyer is sufficient for most cases – and they don’t get paid unless you get a settlement.
  

• Maximize your compensation. A lawyer can help you understand the full value of your claim and fight for the compensation you deserve.
  

• Handle the complexities. A great lawyer can navigate the complex legal and insurance processes most people don’t understand.
  

• Deal with denials or bad faith. If your insurance company tries to unfairly deny your claim or acts in bad faith, an accident lawyer can take legal action to protect your rights.

The Morris Law Group—Car Accident Attorney Burlington

If insurance companies are trying to give you the run-around, you need an attorney on your side to advocate for your rights. We’re used to dealing with difficult insurance adjusters – something that no one should have to do alone. 

Our expert legal team at The Morris Law Group has successfully advocated for clients for 60+ years. We have the expertise and dedication to advocate for your best interests and help secure the justice you deserve after an unfortunate car accident. 

Request a free consultation or call us at 905-526-8080 to learn more and speak with a personal injury attorney.