Insurance Companies Have Certain Motivations and Strategies for Handling Negotiations When Injured Victims File Claims in New Jersey.
The general role of insurance companies in New Jersey is to protect their clients financially from hazards and losses. Often, when a person has been injured or experienced property or other losses due to another’s negligence, the victim will negotiate their claim not with the at-fault party but with the party’s insurance provider.
The Insurance Claims Investigation Process in NJ
Whether an accident involves an automobile collision, slip and fall, medical malpractice, product liability, or another type of liability issue, the defendant’s associated insurance company will lead a claims investigation. This investigation aims to get to the bottom of the conditions leading to the accident to determine whether the insurance provider’s client was, in fact, liable for causing the conditions leading to the accident and, thus, responsible for a payout.
The investigation will also attempt to determine the damage caused so it can negotiate a settlement with the victim and/or their representing attorney. Insurance claims investigations include collecting documents, medical records, and other evidence, such as police reports. Involved parties, including the victim, defendant, and witnesses, are interviewed for statements, and any damaged property is reviewed. The insurance company uses gathered evidence to determine their client’s liability and the amount of the claim.
Evidence gathered in an insurance investigation varies broadly depending on the type of claim that was filed. For example, a medical malpractice insurance company will lead an investigation into malpractice conducted by its insured, which includes procedures differing greatly from that of an insurance company whose policyholder was accused of negligence, causing a slip and fall accident.
How Insurance Companies Determine Claim Value
Determining the value of a claim is not an exact art. Insurance companies often use a damages formula to determine how much injuries are ‘worth.’ They do this by totaling the amount of medical expenses the victim had to pay due to the injury accident and augmenting that total by a multiple of anywhere from two to upwards of ten, depending on the severity and longevity of the injury. They also factor in lost wages to add to the claim valuation.
One additional factor that is important to insurance companies valuing an injury claim is the percentage of fault that their policyholder had in the accident. New Jersey is a comparative negligence state, meaning that an at-fault party is liable only to the extent that their negligence was responsible for causing the accident, from 51 to 100 percent. An insurance company will look closely at evidence showing how much fault their client assumed in causing the accident.
Impact of Insurance Policy Limits on the Negotiation Process
All insurance policies have a policy limit. This is the ceiling amount an insurance company will pay to a claimant. If a claim’s damages exceed the defendant’s insurance policy limit, they will have to cover the difference out of pocket. These negotiations between the insurance company and their policyholder occur in the course of the negotiation process.
A Personal Injury Attorney’s Role in Settlement Negotiations with Insurance Companies in New Jersey
When it comes to settling any type of injury claim or filing a lawsuit in New Jersey, having a seasoned personal injury attorney on your side is a critical piece of ensuring that your rights are upheld. The settlement negotiations process is an extensive one that includes investigation of medical records, police reports, photo and video evidence, and pertinent documentation, leading to the formulation of an initial settlement proposal. Gathering this information is cumbersome for anyone, let alone someone who has been injured in an accident.
Our personal injury lawyers at Cohen & Riechelson skillfully investigate and calculate this initial proposal and consider the insurance company’s counteroffer. We bring our decades of experience and legal know-how to ensure that you are fairly compensated for your injuries and losses. Furthermore, the at-fault party’s insurance company is set up to pay as little in settlements as possible for claims against their policyholders. They will go to lengths to get evidence demonstrating that their policyholder was not fully at fault, including attempting to get the victim to provide a statement accepting some blame. An attorney on our team will act as a middle person, communicating with the insurance company on your behalf. A settlement can be reached within weeks or result in a lawsuit taking months if the insurance company does not agree to a fair settlement amount.
No doubt, our team will protect your best interests from beginning to end and fight for your rights against uncompromising insurance companies and those who use tried and true tactics to minimize the value of your claim. We have successfully represented clients across Lawrence, Robbinsville, West Windsor, Pennington, Hamilton, Princeton, Trenton Ewing, and throughout Mercer County, Burlington County, and Middlesex County for over 50 years and are an established and respected member of the community. Contact us today at (609) 528-2596 to learn how we can assist with successfully resolving your injury claim.
