San Diego Car Accident Lawyer Blog

The Jurewitz Law Group is currently working to develop a book for the public describing, among other things, a number of mistakes car accident victims make in handling their claims.

One of the key mistakes occurs when car accident victims trust the at-fault driver's insurance company to treat them fairly. Or politely. Here is what everyone needs to know: The insurance company does not work for you, does not need to treat you fairly, and does not have your best interests at heart.

Our office constantly receives calls from potential clients who were cooperating with the insurance company, providing the carrier with a recorded statement and authorizations for medical records, only to find that the insurance company would not return the favor by making a fair offer or refusing to fairly negotiate the claim by using "take it or leave it" tactics.

Not every accident victim needs an attorney and certainly most people do not like the idea of hiring an attorney. Insurance companies play into that feeling by being friendly, courteous, and sympathetic. They insist that victims don't need an attorney and that the insurance company will "take care of everything". They sometimes try to make a quick, nominal settlement--even promising to keep medical treatment "open" or a set amount of time.

All of these tactics are designed to do one thing: to unfairly reduce the amount the insurance company will pay the claimant.

As one expert once said: Insurance companies can handle claims quickly or fairly, but rarely do they do both.

If you are a car accident victim, deal with the insurance company at arms' length. Do not believe they will do anything that is not in their best interest. Also, if you require any ongoing medical care after your car accident, it is best to at least consult as early as possible with a car accident personal injury attorney. You can always decide after the free consultation that you do not need an attorney. However, the additional knowledge you will gain after meeting with an attorney will be invaluable.

Earlier this week, the California Department of Insurance ordered Allstate Insurance Corp. to reduce its' homeowner insurance rates by $255 million. The ordered reduction comes in response to to Allstate's request to raise premiums for homeowners by 9.8%. Instead, the Department of Insurance ordered a reduction of 28.5%--slightly less than the 30% reduction advocated by Consumer Watchdog, a consumer advocacy group.

The reduction will represent an average annual savings of $243 for Allstate's estimated 850,000 homeowner policy holders in California.

In April, the Department of Insurance also ordered Allstate to reduce its' auto policy premiums by 15.9%--representing another premium cut of $250 million per year.

It seems that Allstate has become the victim of its' own aggressive, low-ball claims tactics--the same tactics that led the American Association of Justice (formerly known as the Association of Trial Lawyers of America) to name Allstate the worst insurance company for consumers earlier this week. The AAJ report specifically points to Allstate's use of the consulting firm of McKinsey & Co. in the mid-1990s to develop a scheme to force claimants to accept lowball offers or go to trial.

Allstate's relationship with McKinsey & Co., and the subsequent development of Claim Core Process Redesign (CCPR) and other tools to lower claims payments, has been well told lately in the book From Good Hands to Boxing Gloves by New Mexico trial lawyer David Berardinelli.

In addition to Allstate's aggressive lowball claims payment process, Allstate has also systematically limited the types of claims covered under their policies by increasing the number and type of exclusions. Insurance companies use exclusions to prevent their obligation to make a claim payment at all for types of claims that one might assume were covered under their policy. For example, Allstate has moved to exclude all mold claims and certain water leak damage claims from coverage.

All of this has led to Allstate earning record profits while they reduce the amount paid for claims while keeping their premiums at the same level.

Now that Allstate has been ordered to reduce their premiums, it remains to be seen how they respond. Will they only further ratchet up their efforts to lowball claimants? Will they push for policyholders to purchase "enhanced" policies with fewer exclusions, albeit at a higher price? Unfortunately, my suspicion is that Allstate will try to increase their profits by forcing more claimants to trial. That has been Allstate's modus operandi for years and it would be surprising to see them change now.

The Jurewitz Law Group has opened a second office in North San Diego County to better serve our North County clients, including people seriously injured in car accidents, motorcycle accidents, and trucking accidents.

Our North County office is located where Carlsbad, Vista, and San Marcos meet along Palomar Airport Road and is easily reachable from Oceanside, Escondido, and Encinitas.

Our North County office is located at 2768 Loker Avenue West, Suite 101, Carlsbad, CA 92010.

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Meetings at our North County office are by appointment only and can be made by contacting our office at 619-233-5020 or 888-233-5020.

Today, California begins enforcing its Hands Free Cell Phone law.

Starting today, police officers are citing motorists talking on a cell phone without a hands free system. First time offenders will be fined $20. Subsequent offenses are subject to $50 fines.