You expect some back and forth with an insurance company after an accident. You may have to provide records, answer questions, and wait while an adjuster reviews your claim. What you probably don't expect is for the company to be tracking how much it saves when claims are denied or paid at lower amounts.

That is part of what has put State Farm's claims practices in the spotlight.

Internal State Farm communications recently made public reportedly reference a 39% rate of claims closed without payment, a $1.4 billion decrease in indemnity payments from 2020 to 2021, and savings of more than $15,000 on certain claims that were denied or underpaid.

The claims at the center of the current litigation involve wind and hail damage to homes, and State Farm disputes allegations that it wrongfully denied or underpaid policyholders. But if you're dealing with State Farm after a car accident, the controversy gives you good reason to pay attention to how your own claim is being handled.

If State Farm has denied your Virginia injury claim, made a low settlement offer, or is disputing the extent of your injuries, Smith Law Center can review the claim before you accept the company's decision. Call (757) 244-7000 or contact us online for a free case review.

What Is State Farm Accused of Doing?

The current allegations center on State Farm's handling of wind and hail claims and an internal program known as the Hail Focus Initiative. In June, the Oklahoma Attorney General filed a lawsuit accusing State Farm of using undisclosed claims-handling practices and restrictive standards to reduce roof replacement approvals and payments to policyholders.

Recently released internal communications have added more detail to those allegations. According to news reports about the records, the communications include discussions about:

• A 39% "closed without payment" rate;
• A $1.4 billion reduction in indemnity payments from 2020 to 2021; and
• Savings of more than $15,000 on certain claims that were allegedly denied or underpaid.

Attorneys representing State Farm policyholders argue that the communications support their allegations that the company was focused on reducing payouts rather than evaluating claims solely on their merits.

State Farm denies wrongdoing. The company has disputed allegations that it improperly denied or underpaid claims, and the litigation has not established that every denial or reduced payment was improper.

The Oklahoma Insurance Department is now reviewing the released materials as part of its ongoing examination of insurance claims practices.

Are the State Farm Allegations Limited to Homeowners Claims?

The cases that brought these State Farm practices to public attention involve wind and hail damage to homes. That is an important limitation, particularly for someone wondering whether the allegations prove something about their own car accident claim.

Attorneys pursuing the cases, however, contend that the claims-handling practices went beyond Oklahoma homeowners insurance. They allege that State Farm used national claims-handling standards and have publicly argued that similar tactics affect other lines of insurance, including auto claims.

Those remain allegations. An individual State Farm injury claim still has to be evaluated based on what happened in that case.

For an accident victim, that means paying attention to the reasons State Farm gives for reducing or denying compensation and whether the evidence supports its position.

State Farm's assessment of your claim can affect whether your medical bills, lost income, and other losses are fully covered. If you have questions about a denial or settlement offer after a Virginia accident, Smith Law Center can review the claim and the evidence behind it. Call (757) 244-7000 for a free consultation.

What Should You Watch for When State Farm Handles Your Injury Claim?

A State Farm adjuster may need information from you to investigate an accident, but the conversations you have during the claims process can also affect the company's decision about liability and compensation.

Be particularly careful when State Farm:

• Asks for a recorded statement. How you describe the accident, your injuries, or even how you are feeling that day can later become relevant to the claim.
• Requests extensive medical records. Records from before the accident could lead to a dispute over whether an injury was caused by the crash or existed beforehand.
• Questions your medical treatment. State Farm may dispute whether certain treatment was related to the accident or medically necessary.
• Places some of the blame on you. Virginia's contributory negligence rule can prevent an injured person from recovering compensation if they are found partly responsible for the accident.
• Makes an early settlement offer. You may still have treatment ahead of you or be uncertain about how an injury will affect your work and daily activities.

You are not required to agree with State Farm's valuation simply because an adjuster tells you what the company is willing to pay. Before signing a release, you can have the claim reviewed by an attorney who represents your interests.

What Can You Do If State Farm Denied or Underpaid Your Claim?

Start by finding out why State Farm reached its decision. A denial letter, settlement offer, or communication from the adjuster can identify where the dispute lies, whether State Farm is challenging fault, the cause of your injuries, your treatment, or the amount of your losses.

Evidence can then be used to address those issues. Depending on the claim, that could include the police report, photographs or video from the crash, witness statements, medical records, employment records, vehicle data, and testimony from experts.

An attorney can also handle further communication with State Farm and evaluate the value of the claim before you sign a settlement agreement. Once a personal injury claim is settled and a release is signed, you generally cannot seek more money later because your injuries required additional treatment or caused greater losses than you expected.

Having Trouble With a State Farm Claim in Virginia? Call Smith Law Center

The allegations against State Farm have put the company's claims practices under a microscope. For someone currently waiting on a State Farm injury claim, the more immediate concern is whether the company is fairly evaluating what happened to you and what your injuries have cost.

Smith Law Center has represented injured people and their families for more than 75 years. Our attorneys can review State Farm's position, investigate your accident, document your losses, and pursue the compensation available to you under Virginia law.

If State Farm has denied your claim, disputed your injuries, or offered less than you believe your claim is worth, call (757) 244-7000 or contact Smith Law Center online for a free case review.