State Farm, the insurance giant who considers itself to be “like a good neighbor,” has been taking part in some very un-neighborly behavior recently regarding medical-related settlement offers.
One attorney recently submitted more than $12,000 of medical bills to State Farm on behalf of his client; State Farm countered with an offer that was $4,000 less than the cost of the medical expenses alone. Sadly, this is a growing trend in the insurance industry when it comes to car accident victims.
Why Such Low Offers?
First, let’s look at how insurance companies determine what amount is “fair and reasonable” when it comes to pain and suffering. These insurance companies tie the pain and suffering amount into the total cost of medical bills; to be clear, this is an insurance practice and has nothing to do with the law.
The formula State Farm is now telling its adjusters to use is two times the amount of the Medicare rate, with a strong possibility of cutting that amount even more for any charges State Farm considers “unreasonable.”
Do the math, and you’ll find that the amounts that State Farm is offering are unconscionably low…even insulting in some situations.
What Are the Ripple Effects of These Lowball Offers?
Quite simply, more and more medical cases will result in litigation because that’s the only way even to attempt to get someone a fair settlement for their pain and suffering. And we’re not talking unreasonably large sums here–we’re talking about amounts that will simply cover their medical expenses.
The methodology being used by State Farm is head-scratching, to say the least. A medical case would never be resolved in this manner in a court of law, either by a judge or a jury. The insurance company is hoping the injured will simply accept their offer.
That’s why State Farm even warned its adjusters that this new reduction policy would lead to increased litigation. Some lawyers believe State Farm wants to force every case into litigation thus delaying the resolution of many cases or forcing injury victims who desperately need money to pay food and rent to accept the low-ball offers.
What Happens to People with Car Accident Injuries?
Sadly, they could be at the mercy of the insurance company if they don’t get a car accident lawyer to represent them. They may go without adequate medical treatment because they have inadequate health insurance coverage to cover their treatments and are unable to afford medical specialists.
That leaves the patient–the victim–with the same insurance premium but minimal compensation from the liability carrier as the victim negotiates “in the blind” without knowing the real value of the claim or how to refute the Adjuster’s arguments for a very low offer.
To avoid this result, the claimant should select The Lapidus Law Firm, a firm which is known for its litigation skills and willingness to fight for its clients until either a fair and reasonable settlement can be obtained or a trial can cam be held to hold the insurance company accountable for the negligence of its insured drivers.
How A Car Accident Lawyer Can Help with Lowball Offers
Insurance companies like State Farm may play games with their clients, but our attorneys at The Lapidus Law Firm certainly don’t. If you’re the victim of someone else’s negligence in a car accident, call us at (202) 751-5111 or (301) 852-7500 to schedule a free, no-obligation Zoom consultation. We’ll listen to you, and you can count on an honest answer from us.
If we don’t think we can get you a fair settlement offer from the insurance company, we will tell you at NO COST TO YOU. If we do believe we can help, we’ll work relentlessly to try and get you a fair and reasonable settlement–not what the insurance company considers to be fair and reasonable.
We’re here to help. Don’t wait… call us now!
Written by Larry Lapidus