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There are plenty of myths about insurance claim disputes and the attorneys who litigate in this space. The purpose of this article is to separate fact from fiction. Let’s take a look at the top myths pertaining to insurance claim disputes and the attorneys who handle those claims.

Myth: Filing a Lawsuit Cancels the Insurance Policy

There is a common misconception that filing a lawsuit after an injury renders the insurance policy void and ineffective. The truth is taking legal action in the form of a lawsuit does not serve as a pretext for the insurer to cancel the insurance policy. Nor does filing a lawsuit set the stage for the insurer to raise the policy’s rates.

State laws prevent insurance providers from terminating coverage or hiking the insured party’s rates after hiring an attorney or filing a lawsuit against the company. The bottom line is insured parties are legally empowered to file a lawsuit against the insurance provider in accordance with the rights detailed in the policy.

Myth: Attorneys are Paid at the Outset of the Legal Process

Attorneys are not financially compensated at the start of the legal action. Insurance claim dispute lawyers with merit and integrity will not request money when the legal action commences. Rather, these professionals work on a contingency basis, meaning they are only financially compensated if the legal action results in a settlement or favorable court award.

Myth: Minor Injuries do not Require the Assistance of an Attorney

Work in the insurance industry long enough and you will likely find that it is in the victims’ interest to meet with an attorney regardless of the extent of the injury. Even minor injuries potentially set the stage for a payout through an insurance provider. Those who attempt to obtain compensation pro se tend to fail. There is also the chance that the claim will be disputed.

Every attorney and victim should be aware of the fact that what might initially seem like a minor injury has the potential to progress into something much more serious. A stiff neck or headache in the hours or days after an accident often indicates whiplash or another serious injury occurred that causes considerable pain down the line. This is precisely why the assistance of a proven personal injury attorney is important even if the injury in question seems relatively minor in the immediate aftermath of the accident.

Myth: Insurance Companies are on the Side of Claimants

This myth is as pervasive as it gets. Though insurance providers claim to be on the side of their paying clients, the truth is that insurance is a business, and businesses need to make money. Though there are plenty of ads on the radio and TV about insurance companies insisting they are a good neighbor and in a client’s corner when disaster strikes, it may not be the company’s primary motivation.

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