6 Tactics Insurance Companies Use to Reduce and Dismiss Claims
Dealing with an insurance claim should be simple. You pay your premiums, and when the time comes, your insurance company should be there to help. But unfortunately, it’s not always that easy. Insurance companies are businesses, and their primary goal is to protect their bottom line – not necessarily to pay you what you deserve.
Insurers use a variety of tactics to minimize payouts, and knowing what to watch for can help you protect yourself. Here are some of the most common ways insurance companies try to reduce or dismiss claims – and what you can do about it.
- Delaying the Claims Process
Stalling is one of the oldest tricks in the book. Insurance companies may take their time investigating your claim, asking for additional paperwork, or bouncing you between different representatives. Their goal? To frustrate you into giving up or accepting a lower settlement than you deserve.
Delays can be especially harmful if you’re dealing with medical bills, car repairs, or lost wages due to an accident. The longer they take, the more financial pressure you’ll feel. Some people get so fed up that they accept a lowball offer just to get some relief.
The best thing you can do is keep meticulous records of all communication with your insurer, including emails, letters, and phone calls. If the process drags on unnecessarily, remind them of their legal obligation to handle claims in a timely manner. In a lot of cases, a personal injury attorney can step in to push the process forward.
- Denying Claims Over Technicalities
Insurance companies comb through policies, looking for loopholes they can use to deny claims. Maybe you missed a deadline to file paperwork, or they claim your policy doesn’t cover the specific incident.
For example, in car accidents, insurers may argue that you were partially at fault – even if you weren’t. In homeowner’s insurance cases, they might deny a claim by citing a policy exclusion you weren’t aware of.
Be careful not to take a claim denial at face value. Request a written explanation for the denial and review your policy carefully. If you notice any inaccuracies or discrepancies, challenge them.
- Using Lowball Settlement Offers
After an accident or loss, you might receive a settlement offer surprisingly fast. While it may seem like good news, it’s often a sign that the insurer is trying to pay as little as possible before you fully understand the value of your claim.
A lowball offer might not cover all your medical bills or property damage, but some people accept it out of desperation. Insurers count on this, knowing that once you accept a settlement, you typically can’t ask for more later.
Never accept the first offer without reviewing the full scope of your losses. Get estimates for repairs, consult with medical professionals about your ongoing needs, and push back if the offer doesn’t reflect your actual damages.
- Blaming Pre-Existing Conditions
When dealing with medical claims, insurance companies often argue that your injuries existed before the incident. If you had a history of back pain, for example, they might claim that your car accident didn’t actually cause your current injuries – it just aggravated an old issue.
This tactic can be incredibly frustrating, especially when you know the accident made things worse. The goal is to reduce how much they owe by shifting blame onto your medical history. Make sure you have thorough medical documentation linking your injuries to the incident.
- Pressuring You Into Recorded Statements
Shortly after filing a claim, an insurance adjuster will probably ask for a recorded statement. They might say it’s just part of the process, but what they’re really doing is looking for inconsistencies or statements that could weaken your claim.
For example, if you say “I’m feeling okay” when asked about your injuries, they might use that against you later, arguing that you weren’t seriously hurt. Even minor wording differences can be twisted to reduce your payout.
Politely decline to give a recorded statement without consulting a legal professional. You are not legally required to provide one, and it’s always better to have an attorney review what you say before speaking on record.
- Disputing Liability
In cases involving car accidents or personal injury claims, insurance companies will do everything they can to avoid taking full responsibility. They may claim you were partially at fault, even if the evidence says otherwise.
Why? Because in many states, your compensation is reduced by your percentage of fault. If they can argue that you were 30 percent responsible for an accident, they may only have to pay 70 percent of your damages – or nothing at all if you’re found mostly at fault.
Gather as much evidence as possible at the scene of an accident, including photos, witness statements, and police reports. If the insurer tries to dispute liability unfairly, a personal injury attorney can help prove your case.
Putting it All Together
Dealing with insurance companies is frustrating, and the best thing you can do in these situations is hire an attorney. A good personal injury attorney will step up to the plate and act as your advocate with the insurance companies to make sure you get what you deserve.
