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How Insurance Companies Evaluate the Value of a Claim

G. Aldrich Law Dec. 29, 2023

Filing an insurance claim after an accident or injury can be stressful. You're not just dealing with physical discomfort and emotional trauma, but you're also thrust into a world that revolves around complex legal jargon and procedures. We understand how overwhelming this can be, and we want you to know that at G. Aldrich Law, we're right here with you, ready to share our knowledge and guide you through every step. 

Insurance companies have their own approach to evaluating claims, which might seem like a mystery. But it doesn't have to be. We're here to shed light on this process, to help you understand how they calculate the value of your claim, and what factors they consider.

The Trial Perspective 

Insurance companies don't just pull numbers out of thin air. They assess the value of a claim based on what they think your chances are of winning at trial if you take the matter to court. It's a game of prediction and probabilities. They'll also consider how much a jury could potentially award you in damages. 

For instance, if you have a strong case backed by solid evidence, the insurance company might predict that you have a high chance of winning at trial. Consequently, they may offer a higher settlement to avoid the expense and uncertainty of a court battle.

On the other hand, if they believe the odds are in their favor, they might offer a lower amount, anticipating that they could win at trial or that a jury wouldn't award significant damages. 

Preexisting Conditions and Your Claim 

Preexisting conditions can be a bit of a double-edged sword when it comes to insurance claims. On one hand, they can potentially decrease the value of your claim. For example, if you had a back injury before the accident and the accident exacerbated it, the insurance company might argue that the preexisting condition, not the accident, is the primary cause of your current pain and suffering. 

On the other hand, a well-argued case can flip this narrative. If we can demonstrate that your condition significantly worsened because of the accident, it may increase your claim's value. It's all about presenting a clear and compelling argument that connects your current condition directly to the accident. 

Actions and Inactions: Their Impact on Your Claim

Your actions or inactions before, during, and after the incident can greatly affect your claim's value. For instance, if you failed to seek immediate medical attention after the accident, the insurance company might argue that your injuries aren't as severe as you claim. Similarly, if you didn't document the accident scene or gather witness information, it could weaken your case. 

On the flip side, proactive actions can strengthen your claim. Prompt medical attention, meticulous documentation of the incident and your injuries, and cooperation with law enforcement and your attorney can all contribute to a stronger case and potentially higher claim value. 

Maximizing Your Claim: The Steps to Take

There are several steps you can take to maximize your claim's value.

  1. First and foremost, consider hiring an attorney.

  2. Seeking immediate medical attention is also paramount. It not only ensures your well-being, but it also helps establish a clear link between the accident and your injuries.

  3. Documentation is another crucial aspect. Keep track of everything related to the accident and your subsequent recovery. This includes medical bills, repair estimates, and even personal journals detailing your pain and suffering. 

  4. Finally, don't rush into accepting the first offer from the insurance company. These entities often start with a lowball offer, hoping you'll accept it to close the case quickly.

Seek Trusted Legal Counsel Today

At G. Aldrich Law, we understand that when you're dealing with insurance companies after an accident or injury, it can be a daunting task. It's essential to know how these entities evaluate the value of a claim. This knowledge will help you arm yourself with the right strategies to maximize your claim.

Our team is dedicated to ensuring that you're not just a number in an adjuster's file, but a person deserving of fair and just compensation. Let us take the reins, handle the complexities, and fight for what you deserve, while you focus on what's most important—your recovery. 

Call us at our office in Lakeport or Woodland Hills, California; we also serve other areas in Lake County and Los Angeles County as well as Colusa, Riverside, and surrounding Northern and Southern California counties.