After a car accident in Pennsylvania, most people are focused on their health, their vehicle, and getting life back to normal as quickly as possible. What many do not realize is that while they are managing those priorities, insurance adjusters are already building a strategy to limit what the company pays out. Because insurance companies are businesses with financial interests to protect, taking steps to protect your rights is critical.
What Happens Right After a Claim Is Filed?
Once a claim is filed, an insurance adjuster is assigned to investigate the crash and assess the company’s financial exposure. The adjuster reviews police reports, medical records, photos, and witness statements, while also evaluating how much the insurer may owe. Those findings are documented in a claims file, which becomes the foundation for every settlement offer, negotiation, or denial that follows.
Why Do Insurance Companies Make Quick Settlement Offers?
“Early settlement” offers are among the most common tactics used after a crash, because a quick payment closes the claim before the full extent of injuries is known. Accepting a settlement typically means signing a release that bars any future compensation, even if medical costs increase later. Pennsylvania law allows injured parties to reject an initial offer and respond with a counteroffer, which gives time to properly assess the true value of all losses before agreeing to anything.
What Does It Mean When an Insurer Delays a Claim?
“Delay” is a deliberate pressure tactic, as prolonged waiting can push a claimant to accept a lower amount out of financial necessity. Delaying payment of a claim without justification is one example of conduct that may rise to the level of insurance bad faith under Pennsylvania law.
Can an Insurer Deny a Claim Without a Proper Investigation?
Denying a claim outright without conducting a reasonable investigation is another form of conduct that may constitute bad faith under Pennsylvania law. Pennsylvania’s “bad faith statute” requires that an insurer have a reasonable basis for denying benefits, and that it not recklessly disregard the lack of such a basis. A denial issued without a proper factual review may give rise to a legal claim against the insurer that goes beyond the original car accident case.
What Is Pennsylvania’s Bad Faith Insurance Law?
In 1990, the Pennsylvania legislature enacted 42 Pa.C.S. Section 8371, which permits a private cause of action against insurance companies that act in “bad faith” toward policyholders. If a court finds that an insurer has acted in bad faith, it may award interest on the claim at the prime rate plus 3%, “punitive” damages, lawyer fees, and court costs. Proving bad faith requires clear and convincing evidence, so building a thorough paper trail from the beginning of the claims process is important.
Should a Recorded Statement Be Given to the Insurance Company?
Providing a recorded statement to an opposing insurer before consulting a lawyer is generally not advisable. Adjusters are trained to ask questions in ways that may result in statements being used to minimize or deny a claim, even when the conversation feels routine and cooperative. Anything said in a recorded statement becomes part of the claims file and can be referenced at every stage of the process that follows.
Our Skilled West Chester Car Accident Lawyers at Eckell Sparks Level the Playing Field When the Insurance Company Plays Hardball
To learn more about your legal options after a crash, contact our West Chester car accident lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. For an initial consultation, call us today at 610-565-3700 or complete our online form. With office locations in Media and West Chester, Pennsylvania, we proudly serve clients in the surrounding areas.