It is usually a bad idea to try to settle your own claim and only retain an attorney if it cannot be resolved, because you can unintentionally harm your own case. Dealing with insurance companies can be complicated and difficult. Insurance companies are for-profit and do not make money from paying out claims. Most individuals filing an insurance claim have never been in an accident before. They do not understand the process, what information the insurance company needs, and what compensation they are entitled to. The insurance company will use multiple tactics that appear innocent but are intended to reduce your settlement. For example, insurance companies may ask you for repeated statements regarding what occurred in your accident. Of course, they need to understand what happened — but they are also looking for inconsistencies. They can use any inconsistencies or conflicts from statements given to accuse you of lying. Likewise, seemingly innocent statements (such as, “I feel fine today”) will be interpreted as an admission that your injuries were not serious. Once the insurance company has determined that you are not a trustworthy witness or that your injuries were not serious, they become very difficult to negotiate with and will make very stingy settlement offers. Even if you retain an attorney after-the-fact, prior statements can dramatically increase the likelihood that a lawsuit must be filed in order to receive fair compensation.
