If you’ve ever filed an insurance claim after an accident, you might assume that the process is straightforward. You submit your claim, provide evidence, and wait for a fair payout. But insurance companies don’t operate with your best interests in mind. Their number one goal is to pay as little as possible while protecting their profits.
Even if the accident wasn’t your fault, the other party’s insurance company will do everything in its power to undermine your claim, reduce the payout, or deny it altogether. Without knowing how these companies operate, you could unknowingly accept far less than you deserve.
As Parham Smith & Archenhold LLC puts it, “Even if the other party is clearly at fault, their insurance company rarely offers a fair settlement for your injuries and other losses. To get the most compensation for medical bills, pain and suffering, and lost earnings, you need a personal injury attorney and a plan.”
If you’re handling a claim, here’s what you need to watch out for – because insurance companies are masters at using these five tactics to limit how much they pay.
- The Quick, Lowball Settlement Offer
After an accident, one of the first things an insurance company may do is offer you a quick settlement. On the surface, this might seem like a good thing. You may be struggling with medical bills or lost wages, and the idea of getting a check in your hands right away can feel like a relief. But here’s the catch – these initial offers are almost always far lower than what you deserve.
Insurance companies know that many people will accept their first offer out of desperation, without fully understanding the long-term costs of their injuries. Once you accept, that’s it – your claim is closed, and you can’t ask for more money later, even if you discover additional medical expenses or ongoing health issues.
- Questioning Your Medical Treatment
Insurance companies will scrutinize your medical care in any way possible to justify paying you less. They may claim that:
- You received unnecessary treatments, so they shouldn’t have to cover them.
- You delayed seeking medical attention, which means your injuries must not be serious.
- Your injuries were pre-existing and not actually caused by the accident.
These tactics are designed to reduce the amount they owe you. If an insurance company is questioning the legitimacy of your medical bills, they might bring in their own “experts” to dispute your treatment plan. They may also try to convince you to see one of their doctors instead of your own – something you should avoid at all costs.
Your best defense is clear documentation. Keeping records of every doctor’s visit, diagnosis, and recommended treatment plan can help prove that your medical expenses are valid and necessary. If an insurance company tries to undermine your claim, having strong medical evidence will make it harder for them to dispute the care you received.
- Blaming You for the Accident
Even if the other driver was clearly at fault, don’t be surprised if their insurance company tries to shift some of the blame onto you. This tactic is especially effective in states with comparative negligence laws, where your compensation can be reduced if you’re found even partially responsible.
For example, the insurance adjuster may argue that you were distracted or not paying attention, contributing to the crash. Or they could raise suspicions that you were speeding, even if you know you weren’t.
These arguments aren’t always based on facts – sometimes, they’re just a deliberate attempt to weaken your claim. If they can successfully pin even a small percentage of the blame on you, they can reduce the amount they owe you.
- Delaying the Claims Process
Insurance companies know that time is on their side. The longer they delay your claim, the more pressure you’ll feel to accept a lower settlement just to get it over with. This is a particularly effective strategy when the accident has left you with mounting medical bills and lost income.
There are several ways they might drag out the process:
- Requiring excessive documentation and additional paperwork.
- Taking an unreasonable amount of time to process each step of your claim.
- Routinely transferring your case to different adjusters to slow things down.
They’re hoping you’ll get frustrated and desperate enough to accept whatever they offer. In some cases, they’ll even wait until the statute of limitations is close to running out – so you either settle for less or risk getting nothing.
If you notice unnecessary delays, it’s important to stay persistent. Follow up regularly, document every conversation, and if things aren’t progressing, get a legal professional involved. Sometimes, the presence of an attorney is enough to make an insurance company take your claim more seriously.
Adding it All Up
Insurance companies are not on your side, no matter how polite or helpful they may seem. Their job is to protect their bottom line, and that means paying you as little as possible.
Whether they’re offering a quick lowball settlement, blaming you for the accident, or dragging out the claims process, their tactics are designed to wear you down and make you settle for less than you deserve.
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