Hi, my name is Matt Eason. In this video, we will discuss whether you should call your insurance company even if it’s not your fault. I’ve practiced personal injury law in California for the last 25 years.
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When clients come into my office, they’re often nervous about whether they did or did not call their insurance company, and in this video, I want to discuss the parameters of whether or not you should call and when you should call.
Before determining when and whether you should call, let’s ensure we understand the insurance company’s role. They are a for-profit business, as a general rule. How do businesses make a profit? And how do companies make a profit? They increase their revenue, and they decrease their expenses. Paying claims to you or anybody else is an expense, and as such, they are motivated to reduce those expenses and pay you as little as possible. So, when you call an insurance company, you need to be sure and be aware that they’re not necessarily on your side. They’re on the side of reducing their expenses, whoever happens to be on their side.
One of the good things about calling your insurance company sooner rather than later is that they can be your advocate in the process. Suppose you contact them in a questionable situation. In that case, your adjuster will likely reach out to the other side and hopefully get them to give a recorded statement, which we can use against that person later on. Just like they’re trying to get a recorded statement from the other side, you need to be sure not to give one on your side without first speaking with an attorney. So, while you should be very wary of the insurance company getting information from you, there is nothing wrong with turning them on to the other side to get the information that benefits you from the other side.
Another reason to contact your insurance company early on involves property damage. Technically speaking, if the other side’s at fault, the other side’s insurance company should pay for the repair or replacement of your vehicle. However, sometimes those insurance companies are particularly slow or adversarial, and if you go to your insurance company, you may be able to resolve that claim sooner. The downside of going to your insurance company is you may have to pay a deductible first. However, if the insurance company can recover any money from the other side, your deductible is the first expense reimbursed. So, from a practical standpoint, getting your car repaired or replaced sooner is better than going through your insurance company as long as you don’t mind being out the deductible for an abbreviated period.
A couple of big cautions to you, though, in speaking with your insurance company about the mechanics of the accident and your bodily injury. Despite what the ads say, they are not on your side. They are on the side of minimizing their exposure. So when you describe the accident to them, if there is any doubt or dispute as to liability, you should not have that conversation until you’ve spoken with an attorney to make sure you understand the law and what facts are beneficial to you. You won’t want to change your story, but how you present the story can make a big difference.
Likewise, you don’t want to talk to the other insurance company or your insurance company about your bodily injuries until you’ve resolved them. You can speak to an attorney about the value of those claims. Insurance companies will use words to minimize your car accident injury and get you to agree to those words, making it harder to make those claims later on. Likewise, a common ploy in the current environment is for an insurance company to offer you a modest amount of money right out of the block to sign a waiver before you’ve finished treatment and realize you have a more severe injury. If you sign a waiver, it’s probably binding, so you probably waived your case.
When thinking about whether to contact your insurance company, it’s always important to remember the big picture. They’re a for-profit company that wants to reduce their risk, and one way to reduce their risk is by getting words that are hurtful to you or unhelpful to your injury claim. Be very cautious about calling any insurance company about your claim without talking to an attorney first if you have any liability concerns and who’s at fault. Likewise, do not contact any insurance company, your own or the other side’s, to discuss your physical injuries until you’ve completely healed and had a chance to speak with an attorney about the value of those claims.
I hope this answers some of your questions about contacting an insurance company, even if it’s not your fault. Again, my name is Matt Eason. If you’ve been involved in a car accident or otherwise have a personal injury claim and would like to speak with an attorney for a free consultation, I hope you will consider me. My phone number is 916-438-1819. The law firm’s name is Eason & Tambornini. We are located at 1234 H Street, Sacramento, California 95814.
