What you should and should not say to the insurance companies after a car accident?

I’ve been practicing law for 25 years, and almost in every first meeting with a client, we ask, “did you speak with the insurance company, and what did you say?”  

In understanding what you should or should not say to an insurance company, there are a couple of critical things to appreciate and understand. One is which insurance company are you dealing with? Is it the insurance company for you or the insurance company for the other side, and sometimes they are the same. In which case, you need to know is it your adjuster or the adjuster for the other policy. 

In addition to knowing which insurance company you’re speaking with, you should understand the big picture. Insurance companies are corporations, and as corporations, they are a for-profit business. As a for-profit business, how do you make a profit? You increase revenue, such as premiums, and you reduce expenses such as paying claims. You are making a claim. They are going to do everything in their power to try to reduce that expense and reduce what they have to pay you. So be aware of that when you speak with them. 

Regarding the other insurance company or the adjuster for the other party, I would never discuss how the accident occurred, meaning the mechanics of the accident. What you did or what they did. If there does not appear to be any dispute about that, the other side admitted to fault, or you were rear-ended, then it’s okay to discuss some of the basic mechanics of the accident. Suppose you have any concerns that liability might be disputed or that they may say you were partially at fault. In that case, you really should not even talk to your insurance company about the mechanics until first speaking with an attorney. 

The reason you want to speak with an attorney first is not that you’re going to change your story. The truth should be the truth, and you should always stick with that. The reason you speak to an attorney is to make sure you understand the law and how it relates to the facts in your situation so that it’s portrayed the most favorable to you. 

Likewise, I would never discuss with them the extent of your injuries or that you were injured or not injured at all. Simply say, “I’m not interested in talking about it right now. I want to speak with an attorney first.” Once your injuries are resolved, you can speak with an attorney to understand your case’s value and the value of your injuries and then speak with an adjuster if you wish or hire an attorney to do so on your behalf.

It is, however, appropriate to speak with the other insurance company about getting your car repaired. If the other side is admitting fault, there is nothing improper about having them come out and inspect your car or taking your car to a body shop to get its repairs, that’s appropriate. It is also appropriate to negotiate the car’s value but be careful in doing that again that you’re not discussing your injuries or the mechanics of how the accident occurred. 

With respect to speaking to your own adjuster about your bodily injuries, be extremely cautious about that as well. Hopefully, the other driver’s insurance company will compensate you for your bodily injuries. It is possible they do not have sufficient insurance to cover you, in which case you may be looking to your own insurance company’s uninsured motorist coverage. Because of the potential of an uninsured motorist coverage claim, some insurance companies will naturally want to minimize your injuries to reduce their exposure. 

Ultimately the thing to understand in all of this is that insurance companies are generally for-profit entities. As a for-profit entity, they want to increase their revenue and decrease their expenses. Like it or not you’re an expense, and thus the less they pay you, the better off they are. So be incredibly guarded when speaking with an insurance company about your claim before speaking with an attorney.