By Yosi Yahoudai
Founder and Managing Partner

Although auto insurance companies are responsible for providing financial compensation in incidents caused by their insured clients, we must not forget that they are a business and seek to maximize their profits. This means that, in cases where they must pay injured individuals, they will try to employ tactics and strategies to offer the least compensation possible. Below, we share the three most common strategies they use to achieve this:

1. Offering an Attractive Initial SumA common tactic is to offer compensation that, at first glance, seems appealing. This can create the impression that they are being generous, but that amount is likely not enough to cover all the expenses related to your accident. It is essential that before accepting any offer, you calculate all the damages and losses you suffered due to the injury, including medical costs, vehicle repairs, lost wages, and potential future expenses. Accepting the first offer could leave you with uncovered expenses in the long run.
2. Delaying the Claims ProcessAnother common strategy is to deliberately delay the process of your claim. This aims to frustrate the claimant, who, under financial pressure, may accept an unfavorable offer since they need the money to cover immediate expenses and cannot afford to wait longer. To avoid falling into this tactic, ensure you keep a detailed record of all communications with the insurer and document any delays in the process.
3. Minimizing Emotional Damage and SufferingMany insurers try to downplay emotional and psychological damages to avoid paying compensation for this type of suffering. While these damages can be difficult to quantify, it is crucial to recognize that they can significantly impact the victim’s quality of life. Keep a record of reports from therapists, psychiatrists, and any other mental health professionals who treated you after the accident to support your claim for emotional damages.

These tactics are designed to take advantage of individuals who lack experience in the legal system or knowledge about personal injury law. For this reason, it is essential to have an experienced legal team that can help protect your rights and know how to confront insurers. Contact us for a free consultation, where we will evaluate your case and explain your legal options.

About the Author

Yosi Yahoudai is a founder and the managing partner of J&Y. His practice is comprised primarily of cases involving automobile and motorcycle accidents, but he also represents people in premises liability lawsuits, including suits alleging dangerous conditions of public property, third-party criminal conduct, and intentional torts. He also has expertise in cases involving product defects, dog bites, elder abuse, and sexual assault. He earned his Bachelor of Arts from the University of California and is admitted to practice in all California State Courts, and the United States District Court for the Southern District of California. If you have any questions about this article, you can contact Yosi by clicking here.