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Insurance Companies Are Paying Fewer Claims: What Virginia Drivers Need to Know
A recent article published by the Wall Street Journal details a worrisome new trend among car insurance companies: In 2025, insurers closed 45% of auto liability and medical claims without making a payment. The trend is especially concerning for injured drivers who may be counting on an insurance payout to cover medical bills, lost income, and other expenses after a serious crash.
If you’ve been hurt in an accident and your insurance company is giving you the runaround, don’t go it alone. Call or text Rutter Mills for your free legal consultation: (757) 777-7777.
We’ll fight to get you the compensation you deserve.
Auto Insurance Payouts: The Odds Are Not In Your Favor
After analyzing thousands of regulatory filings, the Wall Street Journal found that the percentage of resolved liability and medical claims closed without payment increased from 35% in 2016 to 45% in 2025.
The ten largest auto insurers had the largest increases in unpaid claims. The odds aren’t favorable for Virginia drivers.
With more than six million traffic accidents occurring nationwide last year, the chances of receiving a payout for medical and liability claims are now uncomfortably close to a coin toss.
Insurance is Required.
Payouts Are Not.
Virginia drivers are legally required to insure their vehicles. In exchange for paying regular premiums, motorists expect their policies to provide financial protection when a covered accident occurs. This insurance represents a contract: I pay my monthly premiums; you provide coverage when I need it.
But increasingly, drivers are finding that paying for insurance doesn’t guarantee an insurance company will pay their claim.
Across Virginia, drivers spend an average of more than $1,100 per insured vehicle each year. Meanwhile, personal auto insurers generated a combined $37.6 Billion in net profit in 2024. While drivers shoulder the cost of required coverage, insurance companies are making record profits—and paying out fewer claims than ever before.
Why Insurance Companies Are Paying Less
The reason that so many claims go unpaid varies, depending on who you ask.
Insurance industry representatives point to rising fraud, and claim that customers are increasingly turning to litigation after a car accident. Personal injury attorneys argue the opposite: Lawsuits are increasing because insurers are denying and undervaluing more claims.
Consumer advocates say profits are a big part of the equation: “The industry uses claim lowballing and denials to wring extra profit out of customers,” said Douglas Heller, director of insurance at the Consumer Federation of America.
Drivers are caught in the middle. Policy exclusions, reporting requirements, and other technicalities can leave people without the coverage they believed they had. When an insurance company refuses to pay or offers less than a claim is worth, injured drivers often turn to an attorney to fight fire with fire.
How a Personal Injury Attorney Can Even the Odds
Surveys show that more than 90% of injured people who hired an attorney received compensation, compared with about half of those who handled their claims alone. Other research has shown that those with legal representation also received more than four times as much compensation on average.
We’ve seen firsthand how much an attorney’s involvement can change the course of an injury claim.
Case Result: From $0 to $450,000
In July of 2023, a woman was driving through Williamsburg when another car unexpectedly turned directly in front of her.
The cars collided.
She had no time to brake, swerve, or avoid the impact. The woman was taken to the hospital and diagnosed with spine pain, wrist pain, and a concussion.
That’s when she called Rutter Mills.
Personal injury attorney Georgina Montgomery took the case. As our client started physical therapy, she began to have trouble with her hearing as a result of the accident. Her medical provider recommended hearing aids, but insurance wouldn’t cover it. When insurance wouldn’t cover the recommended hearing aids, her team at Rutter Mills worked to find another solution, including connecting her with a healthcare provider who accepted her insurance.
As her medical bills surpassed $40,000, there was still no offer from the insurance company.
Meanwhile, Rutter Mills investigators were hard at work locating witnesses and surveillance footage. Three eyewitnesses were found, and body cam footage was obtained from law enforcement officers at the scene.
Georgina’s team began scheduling depositions, mediations, and court dates. During this process, the client reached out again to let us know that her doctor was prescribing her pain injections—likely for the rest of her life. If the injections stopped working, she would need surgery.
By this point, the medical bills exceeded $76,000. Still, no offers arrived from the insurance company.
To fully illustrate the impact of her injuries before trial, Georgina asked the client to send photos showing her life before the accident. Traveling, visiting amusement parks, and walking her dog were activities she once enjoyed but could no longer participate in.
As the trial date neared, the defense agreed to a mediation. The first offer was finally put forward: $200,000. Georgina pushed back, citing the lifelong need for injections and the ever-increasing medical bills, now up to $100,000.
The case settled for $450,000.
With this settlement, our client has the resources to cover future pain injections, heal, and rebuild her life.
After an Injury, Your Lawyer Matters
If an insurance company has denied your claim, delayed payment, or offered less than your injuries are worth, Rutter Mills is ready to fight back. Our attorneys will investigate your accident, build your case, and prepare to take the insurance company to court if that is what it takes.
Call or Text Us Anytime, Day or Night
Insurance companies have teams working to protect their bottom line. You deserve a team fighting just as hard to protect you.
Don’t settle for less. Call or text Rutter Mills at (757) 777-7777. Your consultation is free, and you pay no attorney fees unless we win your case.
