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Why insurance companies may underestimate ongoing medical costs

On Behalf of | Feb 27, 2024 | Injuries

Insurance companies play a major role in determining the compensation individuals receive after they get hurt in car accidents. However, in Massachusetts, settlement offers are often too low.

There are several reasons why these companies may underestimate the ongoing medical needs of individuals.

1. Pressure to minimize payouts

Insurance companies want to minimize payouts to maximize profits. This financial incentive may lead to deliberate underestimations of ongoing medical needs. Adjusters may downplay the severity of injuries or dispute the need for certain treatments to lower compensation offers.

2. Inadequate evaluation of long-term effects

Insurance companies may focus on immediate medical expenses and not consider the long-term effects of injuries. While visible injuries may receive attention during initial assessments, insurers may overlook the full extent of ongoing medical requirements, such as rehabilitation or specialized care.

3. Limited understanding of medical conditions

Insurance adjusters may not have comprehensive medical knowledge. This can lead to underestimations of ongoing medical needs. Insurers may also not fully understand or consider complex medical conditions or potential complications. For example, moderate and severe traumatic brain injuries increase the risk of Alzheimer’s.

Likewise, chronic conditions or injuries requiring long-term treatment may incur significant expenses beyond the settlement period. Without proper consideration of these future costs, individuals may not receive enough compensation to cover their ongoing medical needs.

4. Disregard for rehabilitation and therapy

Rehabilitation and therapy are important components of recovery. However, insurance companies may undervalue the importance of these services. Similarly, they might underestimate the duration and intensity of therapy required. This oversight can lead to insufficient compensation for ongoing rehabilitation efforts.

Individuals involved in personal injury claims should be aware of these potential challenges.