Insurance plays a crucial role in almost every personal injury case, especially in motor vehicle accidents. If you’re injured in a car crash, the at-fault driver’s auto insurance is responsible for covering your medical expenses, property damage, and other losses. But how does the process actually work before filing a lawsuit?

Understanding the pre-litigation phase—before a lawsuit is filed—can make a huge difference in your case. Insurance companies have their own tactics, and knowing how they operate will help ensure you get maximum compensation for your injuries.

What Happens Before Filing a Lawsuit?

Before a case goes to court, it typically enters the insurance claims process. This is called the pre-litigation phase, where the insurance company has the right to settle a claim without the policyholder’s direct input. Here’s how it works:

1. The insurance company assigns an adjuster – The insurer appoints a claims adjuster to investigate your case, determine liability, and negotiate the settlement.
2. The adjuster collects evidence – They review police reports, medical records, witness statements, and property damage estimates to determine how much they’re willing to pay.
3. The insurance company sets a "reserve" – The adjuster must get approval from their supervisors for a maximum settlement amount. This number is rarely shared with you.
4. The negotiation process begins – Insurance companies always lowball the first offer to save money. They assume you don’t know the true value of your claim.
5. If you accept the offer, your case is closed – Once you agree to a settlement, you waive your right to pursue further compensation—even if new injuries or expenses arise.

Why the Adjuster’s First Offer is Almost Always Low

Insurance companies maximize profits by minimizing payouts. Many accident victims make the mistake of accepting an early settlement because they assume it’s the best they can get. This is a mistake.

• Adjusters start negotiations low to have plenty of "wiggle room."
• If you don’t push back, they may convince you to settle for much less than your case is worth.
• Medical expenses, pain and suffering, and lost wages are often undervalued in their calculations.
• Once you accept, you cannot file a claim for additional compensation later.

The Role of a Car Accident Attorney in Insurance Claims

A car accident attorney ensures that insurance companies don’t take advantage of you. Here’s how having legal representation strengthens your claim:

• Determining the true value of your case – A lawyer will assess all damages, including future medical expenses, lost earning potential, and emotional distress.
• Negotiating a fair settlement – Attorneys understand insurance tactics and push for maximum compensation.
• Identifying other insurance policies – Some cases involve multiple insurance claims that you may be unaware of, and that the adjuster is unlikely to inform you of (e.g., underinsured motorist coverage, employer liability, or commercial insurance policies).
• Protecting your rights – If the insurance company acts in bad faith, a lawyer can hold them accountable and file a lawsuit if needed.

Pitfalls to Avoid When Filing an Insurance Claim

Many accident victims unintentionally weaken their claims. Here’s what to watch out for:

1. Giving a Recorded Statement Too Soon

Insurance companies often pressure victims to give statements before they have legal counsel. Adjusters may twist your words to:

• Downplay your injuries.
• Shift the perception of liability onto you.
• Limit the amount they have to pay.

2. Accepting the First Offer

If an insurance adjuster tells you, "This is the best we can do," that’s almost never true. A personal injury lawyer can push for more.  Often, a LOT more.

3. Failing to Document Everything

Your claim is only as strong as your evidence. Keep police reports, medical bills, repair estimates, witness contacts, and written correspondence with the insurance company.

4. Not Consulting a Personal Injury Attorney

Without an attorney, you risk settling for far less than your case is worth. Most personal injury lawyers offer free consultations, so it costs nothing to explore your legal options.

Should You File a Lawsuit Against the Insurance Company?

If negotiations fail or the insurance company acts in bad faith, your personal injury lawyer may recommend filing a lawsuit. This is often necessary if:

• The insurance company denies your claim without valid reason.
• They refuse to offer a reasonable settlement.
• There are multiple claimants, and policy limits are exhausted.
• You suffered serious injuries requiring long-term care.

A lawsuit puts pressure on the insurance company and often leads to higher settlements before trial.

Speak With an Experienced Auto Accident Attorney

If you’ve been injured in a motor vehicle accident, don’t let an insurance company dictate what your case is worth. At Dwyer Williams Cherkoss Attorneys, we fight for accident victims to get the full compensation they deserve.

Call (541) 617-0555 today for a free consultation. Let our car accident lawyers handle the insurance battle so you can focus on recovery.