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Common Insurance Company Tactics

On Behalf of | Mar 27, 2024 | Unfair Insurance Practices

Empower Yourself Against Unfair Insurance Practices

Insurance protects individuals and organizations from unanticipated dangers, maintaining financial stability. However, customers often face varied insurance company strategies, making insurance navigation difficult. Although most insurers are honest and meet their pledges, consumers should be aware of frequent insurance company techniques that can harm them.

Consumers must recognize these methods to make educated decisions, defend their rights, and have fair and honest insurance provider relationships. We will identify typical insurance business techniques and analyze their effects on customers seeking financial security and peace of mind.

Short Summary

  • Beware: Insurance companies may use tactics like delays, low offers, paperwork hurdles, and broad releases to minimize payouts.
  • Empower Yourself: Know your policy, document interactions, and seek professional help if needed.
  • Take Control: Negotiate confidently, understand your rights, and don’t be afraid to fight for fair treatment.

By being aware of tactics like delayed claims, confusing policy wording, and pressured settlements, you equip yourself with the knowledge to advocate for fair treatment. Take control of your insurance journey and ensure you receive the benefits you deserve.

What Are The Common Insurance Company Tactics?

After an accident, remember that insurance companies are profit-driven. They usually try to cut their payment. Whether you were injured in a vehicle accident, slip-and-fall, truck accident, or any personal injury, delaying settlement may benefit the insurance carrier.

Considering this, if you’ve been injured, you should work with a qualified attorney with experience in comparable instances. An experienced attorney can battle the insurance company, but you must be aware of their strategies.

Intentionally Delaying Your Case

The insurance adjuster may employ various strategies to delay your case in the hopes of offering a lower settlement:

  • Requesting additional medical records, even if you’ve already provided some. Insurance companies are aware that obtaining these records takes time, and they may use this delay to their advantage.
  • Indicating the need to consult with a supervisor with higher settlement authority before offering more money. The aim is to encourage you to accept a smaller amount rather than waiting for a modest increase over weeks or months.
  • Transferring your case to a different adjuster, causing delays as the new adjuster familiarizes themselves with your situation.
  • “Hiding the ball,” where adjusters refrain from volunteering information about your insurance coverage. You may be entitled to thousands of dollars from your underinsurance coverage, and seeking legal advice can help you understand your policy and rights.
  • Claiming that your case must go through a “committee” before compensation can be provided, often just a tactic to buy more time.
  • Employing a morbid tactic by hoping you will pass away. For elderly individuals, an insurance adjuster might intentionally stall processing your claim, anticipating that you may not survive long enough for them to make a payout. This strategy underscores the insurer’s focus on money and profits, and unfortunately, it’s a tactic used more frequently than one might expect.

Making Lowball Settlement Offers

A personal injury claim requires caution when discussing a fair payment, especially if the initial settlement offer is low. The insurance company’s initial offer is likely to be much lower than you deserve. Before settling, you must grasp all financial and non-financial losses that can be recovered.

Requesting Unnecessary Information

You may need to acquire all minor details before insurance companies “assess the claim.” They’re willing to wait six weeks for the needed information even if it doesn’t increase their offer. Your funds are generating interest while they withhold them.

The Adjuster Wants You To Sign A Written Medical Release Or Use Their Doctor

It can be difficult. Some insurers want a “broad, all-encompassing release.” Consult a lawyer before signing any documents. You may be giving up legal rights, so getting a professional advice is wise.

Before taking an independent medical exam by the insurance company’s doctor, consult your attorney. Be mindful of legal dangers, and your lawyer can help you avoid them.

Misrepresenting The Insurance Policy’s Coverage

Insurance adjusters may misrepresent claim coverage. They may misrepresent coverage. Adjusters may also convince plaintiffs they cannot sue for pain and suffering or lost wages. Personal injury lawyers can help plaintiffs determine insurance policy limits and compensation.

Blaming Accident Victims For Their Own Injuries

Insurance firms often blame accident victims for their injuries. Accident victims were often accused of delaying treatment, meaning that they might have avoided significant costs. Thus, these expenditures are blamed on the sufferer rather than the insurer.

Similar to attempts to compel accident victims into admitting fault, attempts to blame victims for their injuries are often unjustified. These initiatives are baseless attempts to deny victims fair recompense.

Insisting That The Plaintiff Doesn’t Need A Lawyer

Insurance firms want plaintiffs to settle before they know the extent of their injuries or the value of their claim. The plaintiff loses the right to receive additional compensation after signing the release. If a plaintiff says they want a lawyer, the insurance company often says “you don’t need a lawyer” or “having an attorney won’t increase your settlement.”

Personal injury lawyers have the skills to get plaintiffs fair compensation. An attorney will defend the plaintiff’s claim and put their interests first, unlike the insurance company.

Denying Any Liability

The plaintiff must prove the other party caused the accident to win a personal injury claim. Whether true, the insurance company may claim the plaintiff is somewhat at blame to avoid liability.

Insurance companies often decline claims without explanation. This method is used because many people may be puzzled or discouraged by the rejection and quit the claim. A personal injury attorney can help the plaintiff pursue their claim and get fair recompense.

The Adjuster Won’t Confirm That Their Client Is The At-Fault Party

Clear identification of the at-fault party is essential to dispute settlement. If the insurance adjuster denies this, get a documented statement verifying that the insured caused the incident.

Ask the adjuster for a written explanation of why you or another party is partially at fault if they do not accept entire fault.

What Can I Do To Avoid These Common Insurance Company Tactics?

Here are some tips to avoid common insurance company tactics:

Before You Make A Claim:

  • Know your policy inside and out: Read and understand your policy wording, including exclusions, limitations, and deductibles. Don’t hesitate to ask your insurance agent for clarification on anything unclear.
  • Document everything: Keep receipts, invoices, photos, and any other relevant documentation related to your policy and potential claims. This can be crucial evidence if there are disputes later.
  • Understand how claims are handled: Familiarize yourself with the claims process your insurance company uses. This will help you stay organized and proactive throughout the process.
  • Consider independent insurance agents: They can represent you and advocate for your best interests, unlike captive agents who work directly for the insurance company.

When Making A Claim:

  • Report claims promptly: Do not delay in notifying your insurance company about a covered event. Time is of the essence, and reporting late could give them grounds to deny your claim.
  • Gather evidence carefully: Document the scene of the event, take photos, and collect witness statements if possible. This can strengthen your claim and protect you against accusations of fraud.
  • Stick to the facts: Be honest and accurate in all your communications with the insurance company. Avoid exaggerating or embellishing details, as this could be used against you.
  • Keep detailed records: Maintain a log of all your interactions with the insurance company, including dates, times, and contact information of the people you spoke with. This can be helpful if there are discrepancies or misunderstandings later.
  • Don’t sign anything without understanding it: Carefully review any release forms or settlement agreements before signing. If you’re unsure about anything, consult with a lawyer or financial advisor.
  • Negotiate confidently: Understand the fair value of your claim and be prepared to negotiate with the insurance company. Don’t accept the first offer they make without exploring other options.
  • Seek professional help if needed: If you feel overwhelmed or unsure how to proceed, consider consulting with an insurance lawyer, advocate, or independent adjuster. They can provide legal advice and representation to protect your rights.

Remember, being proactive and informed can significantly reduce the risk of falling victim to common insurance company tactics.

Contact Our Personal Injury Law Firm Today!

Understanding the common insurance company tactics is crucial for those navigating the world of claims and settlements. This knowledge empowers individuals to safeguard their rights, ensure equitable compensation, and steer clear of deceptive practices. If you encounter challenges with insurance companies or harbor concerns about your claim, seeking professional guidance becomes essential.

At Karp Steiger Co., LPA, our experience lies in advocating for individuals grappling with insurance disputes. Our personal injury legal team is committed to delivering personalized and efficient legal representation. Whether you are uncertain about your rights, have experienced insurance company tactics, or simply seek legal advice, we encourage you to contact us for a risk free consultation. Your peace of mind and fair treatment rank high on our list of priorities. Reach out today to discuss your circumstances and explore the available options.