After an accident, you will likely need to deal with one or more insurance companies. Whether it is your own insurer or the at-fault party’s, understanding how insurance companies operate—and how to protect yourself—can significantly impact the outcome of your claim.
Understanding New York’s No-Fault Insurance System
New York is a no-fault insurance state. This means that after a car accident, your own insurance company pays for certain losses regardless of who caused the accident. Under New York’s no-fault system, Personal Injury Protection (PIP) coverage pays for:
- Medical expenses
- Lost wages (up to a percentage of your income)
- Other reasonable and necessary expenses
However, no-fault coverage has limits. If your injuries are serious, you may be entitled to pursue a claim against the at-fault driver for additional compensation, including pain and suffering.
The Insurance Company’s Goal
It is important to understand that insurance companies are businesses. Their goal is to pay out as little as possible on claims. Adjusters are trained to protect the company’s bottom line, not to ensure you receive fair compensation.
Common tactics insurance companies use include:
- Offering quick, lowball settlements before you understand your full damages
- Requesting recorded statements and using your words against you
- Delaying claim processing to pressure you into accepting less
- Disputing the severity of your injuries or claiming they were pre-existing
- Arguing you share fault to reduce your compensation under comparative fault rules
- Misrepresenting policy terms or your legal rights
Steps to Take When Dealing With Insurance Companies
Report the Accident Promptly
Notify your own insurance company about the accident as required by your policy. Provide basic facts but avoid speculating about fault or the extent of your injuries.
Do Not Give a Recorded Statement Without Legal Advice
Insurance adjusters may ask you to provide a recorded statement. While you generally must cooperate with your own insurer, be cautious. Adjusters are skilled at asking questions designed to elicit answers that can be used to minimize your claim.
If the other driver’s insurance company contacts you, you are under no obligation to give them a recorded statement. Politely decline until you have consulted with an attorney.
Do Not Accept the First Settlement Offer
The first offer is almost always lower than what your claim is worth. Insurance companies know that accident victims facing medical bills and lost income may be tempted to accept a quick settlement.
Before accepting any offer, make sure you understand the full extent of your injuries and all potential damages, including future medical expenses and long-term impacts.
Keep Detailed Records
Document everything related to your accident and injuries:
- Medical records and bills
- Correspondence with insurance companies
- Photographs of injuries and property damage
- Receipts for out-of-pocket expenses
- A journal documenting your pain, symptoms, and how injuries affect your daily life
Thorough documentation strengthens your claim and makes it harder for insurers to dispute your losses.
Be Careful What You Say
Anything you say to an insurance adjuster can be used against you. Avoid:
- Admitting fault or apologizing
- Speculating about what happened
- Downplaying your injuries (“I’m fine” or “It’s not that bad”)
- Discussing your claim on social media
Understand What You Are Signing
Insurance companies may ask you to sign various documents, including medical authorizations and release forms. Read everything carefully. Signing a broad medical authorization can give the insurer access to your entire medical history, which they may use to claim your injuries were pre-existing.
Never sign a release or settlement agreement without fully understanding what rights you are giving up.
What to Do If Your Claim Is Denied
If your insurance claim is denied, you have options:
Request a Written Explanation: Ask the insurance company to explain the denial in writing, including the specific policy provisions they relied on.
Review Your Policy: Carefully review your policy to understand your coverage and whether the denial is justified.
Appeal the Decision: Most insurance companies have an internal appeals process. Submit additional documentation to support your claim.
File a Complaint: If you believe the insurer is acting in bad faith, you can file a complaint with the New York State Department of Financial Services, which regulates insurance companies in New York.
Consult an Attorney: An experienced personal injury lawyer can review your denial, advise you on next steps, and take legal action if necessary.
When to Involve an Attorney
Consider consulting with an attorney if:
- You suffered serious injuries requiring extensive treatment
- The insurance company denies your claim or offers an unfair settlement
- Liability is disputed
- Multiple parties or insurance policies are involved
- You are unsure about the value of your claim
- The insurer uses delay tactics or acts in bad faith
An attorney can handle all communications with insurance companies, gather evidence to support your claim, negotiate aggressively on your behalf, and take your case to trial if necessary.
Do Not Let Insurance Companies Take Advantage of You
Insurance companies have teams of professionals working to minimize what they pay. You deserve someone on your side who understands their tactics and knows how to fight back.
At Isaacson, Schiowitz & Korson, LLP, our attorneys have more than 75 years of combined experience dealing with insurance companies on behalf of accident victims. We have recovered over $200 million for our clients in cases involving car accidents, truck accidents, motorcycle accidents, slip and falls, and other personal injury matters.
We represent clients throughout New York, including Manhattan, Brooklyn, Queens, Suffolk County, and Rockville Centre. Contact us today for a free consultation.
