What’s the Role of Insurance Companies in Alaska Car Accident Lawsuits?
Car accidents are one of the most common reasons people seek medical care, and the statistics are proof. The US Centers for Disease Control and Prevention (CDC) reports that more than 2.6 million victims visit the emergency room every year for injuries from motor vehicle crashes. These individuals and their families are left with devastating losses, but it’s a relief to know that you have rights through a traffic crash claim.
As such, it’s important to know the role of insurance companies in car accident lawsuits. Settling is one way to resolve a claim, but litigation may be necessary in some cases. An Alaska car accident lawyer can help you understand the function of the insurer in this process.
Alaska Insurance Laws and Car Accident Settlements
Alaska follows a fault-based system for car accidents, meaning the at-fault driver’s insurance is responsible for covering damages. State law requires all drivers to carry minimum liability coverage as follows:
- $50,000 per person for bodily injury
- $100,000 per accident
- $25,000 for property damage
However, these limits may not fully cover medical bills or lost wages, especially in severe crashes.
Another key factor to consider with auto crash settlements is comparative negligence under Alaska law, which reduces compensation based on fault percentage. If a victim is found 20 percent at fault, their settlement is reduced by 20 percent.
Tactics Insurance Companies Use to Reduce Payouts
Insurers prioritize profit over fair compensation, so they frequently employ tactics to minimize settlements. One common strategy is offering quick, lowball settlements before victims understand the full extent of their injuries. Accepting early offers can leave claimants without adequate funds for future medical treatment.
Another tactic is disputing liability by suggesting the injured party is at fault. Adjusters may reference Alaska’s comparative negligence rule to justify reducing or denying claims. Insurers also request recorded statements, hoping victims unintentionally admit fault or downplay injuries. Always consult an attorney before speaking with adjusters to prevent these missteps.
What to Do If the Insurance Company Denies Your Alaska Car Accident Claim
If an insurance company denies your claim, follow these steps to challenge the decision:
- Review the denial letter. Insurance companies must provide a reason for denial, such as claims of policy violations, missed deadlines, or disputed liability.
- Gather supporting evidence, including medical records, police reports, witness statements, and accident scene photos, to strengthen your case.
- File an appeal by submitting additional documentation proving your injuries and damages.
- Don’t give up, because the insurer is hoping a denial leads you to drop the case. Persistence often leads to reconsideration.
- If the insurer still refuses to pay, an attorney can help file a bad-faith insurance claim or take legal action.
Consult with an Alaska Auto Crash Attorney Right Away
Dealing with the insurer can be challenging, but having legal representation streamlines the claims process and ensures that you don’t misstep along the way. At Power & Power Law, our experienced attorneys have a strong track record of securing fair compensation for car accident victims. For more information, call 907-222-9990 or go online to schedule a free consultation with a knowledgeable Alaska car accident lawyer.