Top Insurance Company Tricks to Watch Out For

Insurance companies sometimes use common tricks to minimize your payout. In this article, we’ll break down 7 common insurance company tricks and how to protect yourself, ensuring you get the compensation you deserve.

Key Takeaways

Insurance companies often delay the claims process to push you towards accepting lower settlements. Stay vigilant and seek clarity on your claim.
Be cautious of quick, low-ball settlement offers. Always consult a professional to understand the value of your claim before accepting anything.
Don’t let insurers twist your words or discourage legal representation. Consulting an attorney can protect your rights and ensure you receive fair compensation.

Delaying the Claims Process

Insurance companies often engage in tactics that result in prolonged claims processes, utilizing various strategies designed to exhaust claimants and nudge them towards settling for a smaller amount.

When dealing with the repercussions of a motor vehicle incident, you might find these insurers not returning your calls or delaying responses to your inquiries, trapping you in an endless cycle of non-communication.

Insurance firms may deliberately distort the provisions within your insurance policy by incorrectly stating that certain medical treatments are not covered, creating confusion and stalling. They exacerbate this delay by repeatedly demanding unnecessary documentation.

The ultimate objective behind these maneuvers is to wear down claimants so they concede to accepting compensation that’s far less than what their claims are actually valued at. By deferring payments for medical expenses and other elements associated with your claim, they bet on your desperation for closure leading you to agree upon an undervalued settlement offer.

Offering Quick Low-Ball Settlements

A visual representation of low-ball settlement offers from insurance companies.

Offering quick, low-ball settlements, also known as the ‘Swoop and Settle,’ is another one of the common insurance company tricks. This involves making rapid offers to settle claims before victims can consult with an attorney, exploiting your immediate financial pressures and lack of understanding about your claim’s true value. Offering quick, low-ball settlements is one of the common tricks insurance companies use to minimize their payouts.

Adjusters often push for quick settlements before you fully understand your injuries or the long-term implications of the accident. Overwhelmed and desperate for financial relief, you may find yourself accepting less money than your insurance adjuster claim is worth.

Premature settlements can have dire consequences. Accepting an offer usually means waiving your right to additional compensation for future medical needs, leaving you to cover those expenses if your injuries are more severe than initially thought.

Take your time, consult with a professional, and fully understand the value of your claim before accepting any settlement offer.

Twisting Your Words

Insurance companies are adept at manipulating your statements to limit their payout. Agreeing to give a recorded statement post-accident can be deceptive, as adjusters might cherry-pick your comments out of context, suggesting that you were at fault or trivializing the extent of your injuries. Twisting your words is one of the common tricks insurance companies use to limit their payout.

For example, declaring “I felt fine right after the collision” could later serve as grounds for insurance representatives to claim that any sustained injuries aren’t significant. Your words may be misinterpreted. It’s wise to refrain from giving a recorded statement and seek guidance from an attorney who specializes in car accidents first.

Insurers could belittle the severity of your wounds in attempts to lower compensation amounts by misrepresenting them as minor or pre-dating the incident. By sharing only pertinent medical records associated with your current case, you help shield yourself against such strategies. Seeking advice from an expert offers additional protection against these manipulative tactics.

Discouraging Legal Representation

Insurance companies, aware that a seasoned lawyer can significantly increase the chances of securing an equitable settlement, often attempt to dissuade claimants from obtaining legal counsel. They may suggest that engaging an attorney is excessive or financially burdensome by providing deceptive advice about your entitlements in order to discourage you from pursuing professional assistance. Discouraging legal representation is one of the common tricks insurance companies use to minimize their payouts.

These companies might contend that getting a lawyer involved will only make the process more complicated and isn’t worth the expense associated with it. Seeking guidance from an attorney before handing over any medical records guarantees that no superfluous details are revealed.

Having legal representation on your side can help avoid undue delays and contribute to achieving just settlements after car accidents. A knowledgeable car accident attorney has the skills necessary to recognize and challenge underhanded strategies used by insurance firms, ensuring you get appropriate recompense for your losses. It’s crucial not to agree to any settlement proposals until you have had a consultation with a qualified attorney.

Contact 1-800-THE-LAW2 today for a free consultation with a car accident attorney in our professional network.

Requesting Unrelated Medical Records

Obtaining medical records that are not directly related to a claim is a frequent strategy. Insurance companies search through your health history attempting to discover pretexts for reducing their payout on claims, by pointing out unrelated health issues that could undermine the strength of your case. Requesting unrelated medical records is one of the common tricks insurance companies use to reduce their payouts.

Take, for instance, an individual with prior instances of back discomfort who submits a claim for a recent accident-related back injury. The insurance firm may contend that the injuries resulted from an existing condition instead of the incident in question, which would decrease their responsibility and resultantly diminish the compensation they receive.

To protect yourself, it’s advised to restrict access to only those medical records pertinent to your present claim. Seeking legal counsel can ensure that merely relevant details are shared while preserving both your privacy and enhancing the legitimacy of your claim.

Blaming Victims for Their Injuries

Insurance companies frequently attempt to deflect responsibility for accidents and injuries by placing the onus on the individual involved in a car accident. By asserting that you, as someone seeking a claim, have played a role in either causing the accident or exacerbating your own injuries, they seek to minimize their financial obligation. Blaming victims for their injuries is one of the common tricks insurance companies use to minimize their payouts.

These firms might suggest that you share some blame for the incident despite clear fault lying with another motorist. They may also challenge how serious or legitimate your injuries are by suggesting they existed before the crash or aren’t quite as critical as you’ve stated. Such disputes can lead not only to delays but potentially smaller payouts from them.

To combat these strategies employed by insurance companies, it’s crucial to get medical attention promptly after an accident and meticulously document all related injuries. Maintaining comprehensive records of treatments received, relevant medical bills incurred, and any associated receipts is imperative. This will fortify your position against allegations from insurers trying to attribute fault onto you regarding those very same injuries.

Surveillance Tactics

Insurers may employ surveillance strategies to collect evidence that undermines your injury claims. These companies often engage private investigators who keep tabs on your daily movements, searching for actions inconsistent with the injuries you’ve reported. Surveillance tactics are one of the common tricks insurance companies use to undermine your injury claims.

Should you be recorded engaging in physical exertion or heavy lifting despite alleging a severe back injury, this visual proof could serve as leverage for insurance providers to diminish the severity of your condition and consequently reduce any potential compensation.

To safeguard against such intrusions and ensure the validity of your claim remains intact, it’s wise to limit social media activity following an accident. By doing so, you prevent posts or images from being taken out of context and used detrimentally by insurers aware that you’re under their watchful eye.

Denying Insurance Coverage or Downplaying Liability

Insurance companies often resort to denying insurance coverage or downplaying liability to avoid paying out claims. They might argue that the accident isn’t covered under the policy or that the car accident victim shares a significant portion of the blame. For instance, they could claim that the policyholder wasn’t operating the vehicle at the time of the accident, thereby denying coverage.

When discussing the accident with an insurance adjuster, it’s crucial to be cautious. Insurance companies may use various arguments to downplay liability, such as suggesting that the car accident victim was speeding or distracted at the time of the incident. Before speaking with an insurance adjuster, it’s wise to consult a car accident lawyer to ensure your rights are protected and to avoid inadvertently saying something that could be used against you.

Withholding Evidence and Critical Information

Another tactic insurance companies use is withholding evidence and critical information to deny or reduce claims. They might claim that the evidence is privileged or irrelevant to the case, making it difficult for you to prove your claim. This can be particularly frustrating when you’re trying to recover from a car accident and need fair compensation.

Hiring a lawyer can be instrumental in recovering withheld evidence and ensuring that the insurance company isn’t hiding anything. Insurance companies may use various tactics to withhold evidence, such as claiming it is confidential or unavailable. Being aware of these tactics and seeking legal help can ensure that you receive the compensation you deserve.

Building a False Sense of Trust

Insurance companies may try to build a false sense of trust with car accident victims to gain their confidence. They often use friendly and sympathetic language to make you feel comfortable and trusting. However, this is often a tactic to get you to let your guard down and reveal information that can be used against you.

It’s important to be cautious when dealing with insurance companies and not reveal too much information without consulting a lawyer. This tactic can be used to get you to accept a low settlement offer or to deny your claim altogether. Always remember that the insurance company’s primary goal is to minimize their payout, not to look out for your best interests. Consulting with a lawyer can help you navigate these interactions and ensure you receive fair compensation.

Summary

Navigating the insurance claims process can be a minefield, but being aware of these common tricks can help you protect yourself and ensure you receive the compensation you deserve. From delaying the claims process and offering lowball settlements to twisting your words and discouraging legal representation, insurance companies employ a variety of tactics to minimize their payouts. Being aware of these common tricks insurance companies use can help you protect yourself and ensure you receive the compensation you deserve.

Remember, you don’t have to face this battle alone. Consulting with an experienced attorney can help you navigate these challenges and secure a fair settlement. Stay informed, stay vigilant, and don’t let insurance companies take advantage of you.

Frequently Asked Questions

How do insurance companies delay the claims process?

Insurance companies can delay the claims process by not returning calls, keeping you uninformed about your claim status, requesting excessive documentation, and misrepresenting insurance policy details.

Stay persistent and keep pushing for clarity to ensure your claim is processed effectively!

What is the ‘Swoop and Settle’ tactic?

The ‘Swoop and Settle’ tactic is a strategy used to make fast offers to settle claims, often catching victims off guard before they have a chance to seek legal advice.

It’s crucial to be aware of this tactic so you can protect your rights and ensure you make informed decisions.

Why should I avoid providing a recorded statement to an insurance adjuster?

It is essential to steer clear of giving a recorded statement to an insurance adjuster as they may misconstrue or manipulate what you say, which could detrimentally affect your claim.

To safeguard your interests, exercise prudence and consider obtaining expert guidance before engaging in conversation with them.

Why do insurance companies discourage legal representation?

Insurance companies discourage legal representation to minimize payouts and often mislead victims about their rights.

It’s crucial to advocate for yourself and seek the support you deserve!

How can I protect my claim against insurance company tricks?

To effectively protect your claim against insurance company tricks, consult an experienced attorney and carefully document all injuries.

Remember to limit the medical records you share and stay vigilant about potential surveillance.

What to Do After a Car Accident with No Insurance

If you’ve been in a car accident with no insurance — that is, if the driver responsible for the crash is not insured — then you may be wondering what options you have for recovering compensation. Navigating these sorts of disputes can be rather tricky, as (in order to secure the maximum amount of damages) they require that you strategically tap into different sources of compensation.

One of the significant financial implications of being in a car accident with no insurance is the burden of medical costs.

That’s why it’s so important that you work with an experienced personal injury lawyer when involved in a car accident with no insurance. Here at 1-800-THE-LAW2, we can help connect you. Contact us today to get started with a free consultation with qualified legal representation.

That being said, if you’re interested in learning a bit more, first, then read on! We’ll discuss some basic strategic issues that you’re likely to encounter as you move forward with your injury dispute.

What happens if the person who crashed into my car is an uninsured driver?

If you get into a car accident with no car insurance (i.e., the person who crashed into your car doesn’t have car insurance, or doesn’t have adequate car insurance coverage to pay out for your losses in full), then you can’t expect to receive proper compensation from a lawsuit against that individual. While most states require car insurance, there are exceptions like New Hampshire and Virginia where drivers are not legally mandated to carry car insurance. It may seem unfair, but they simply won’t have the funds necessary to cover your damages.

Instead, you’ll have to explore alternative means of securing compensation, either through accessing uninsured motorist coverage (or underinsured motorist coverage) with your own insurance company, or through suing other defendants who have the coverage/funds necessary to pay out your losses.

Uninsured / Underinsured Coverage and how it helps

If you can’t get paid in full for your losses by suing the driver responsible for the accident (and your subsequent injuries), then you can explore the possibility of accessing your own insurance coverage — specifically, uninsured motorist coverage or underinsured motorist coverage (UM/UIM).

UM/UIM is accessible when the driver responsible for your accident does not have adequate insurance to cover your losses. They might even “have” insurance, but it could be a minor policy that isn’t sufficient to pay out your damages in full. That’s where UM/UIM comes into play.

You may have a UM/UIM policy and not realize it — so consult your attorney and pore over the details of your insurance policy contract with them. There may be details that can help you strategize over how to submit the claim so as to reduce the likelihood that your insurance provider rejects the claim, or underpays you for it.

Who can you sue for damages besides the other driver?

Given that your damages will be limited if you try suing the uninsured/underinsured driver, you’ll want to explore the possibility of suing other defendants who have adequate insurance coverage and can therefore cover your losses.

These defendants may include:

The employer of the driver who caused your accident
Any other drivers who contributed to your accident
Any product manufacturers (i.e., the auto manufacturer) whose defective parts contributed to your accident
The City, if some dangerous condition of the roadway or adjacent property contributed to your accident
Private property owners, if some dangerous condition of their property contributed to your accident
Medical professionals whose negligence contributed to your injuries or otherwise exacerbated them
And more

For example, thanks to the doctrine of “vicarious liability,” you may be entitled to sue the employer of the driver who hit you — if the driver was negligent and was on the job at the time of the accident. This gives you access to a deep pockets defendant with the sort of substantial insurance coverage necessary to pay out your losses in full.

How much can I sue for medical expenses after my car accident?

After a car accident without insurance (i.e., the driver who hit you doesn’t have auto insurance coverage), you can sue for a variety of losses that you sustained as a result — and in fact, these damages apply whether or not you’ve been involved in an accident with uninsured drivers. The claimable damages cover losses that include:

Lost wages
Loss of earning capacity
Loss of property (i.e., repair and replacement costs for your vehicle)
Medical expenses (i.e., medical bills for medical treatment)
Pain and suffering
Loss of companionship
Loss of enjoyment of life
And more

Financial and legal consequences naturally follow in a bodily injury liability dispute. So yes, you can claim damages regardless of the other driver’s access to car insurance. That being said, your ability to “recover” those damages as compensation will vary depending on the car insurance coverage that they have (and the other defendants that you can sue, for example).

Insurance companies tend to be rather difficult to work with when offering payouts, so you can expect that to be its own challenge, for which you’ll want the assistance of an experienced auto accident attorney who understands how to pressure the insurance team.

What if I’m partially at-fault for the accident? Can I still be compensated?

If you’re partially at-fault for an accident, then you could potentially still be compensated depending on the state law that applies to your dispute, and the particular circumstances surrounding the accident.

Across the United States, there are three different doctrines that apply when it comes to partial fault:

Some states apply the “pure comparative fault” doctrine. Under pure comparative fault, you can be 99 percent at-fault, and still sue and recover compensation. That being said, your recovery will be reduced by your percentage contribution of fault. So, for example, if you are 70 percent at-fault, then your $100,000 damages claim will result in a $30,000 recovery.

Some states apply the “modified comparative fault” doctrine. Under modified comparative fault, you can be up to 50 percent at-fault, and still sue and recover compensation. As with pure comparative fault, your payout will be reduced by your percentage contribution of fault. Worth noting: if you’re 51 percent at-fault (or more), then you are restricted from obtaining compensation entirely.

In a small minority of states, the doctrine of “strict contributory fault” is applied. Under strict contributory fault, you cannot sue and recover compensation if you are partially at-fault for the accident — yes, even 1 percent is enough to prevent a lawsuit. Worth noting: though this can seem very restrictive, experienced attorneys understand how to navigate the challenge by exploring ways to argue about causality (i.e., that your negligence was not causally linked to the accident claim you are making).

Don’t disclose sensitive information to your insurer until you’ve spoken to an attorney

Listen: insurance companies are not your ally. That can be shocking to hear. After all, we’ve been taught — thanks to decades of advertising — that the insurance company is “like a good neighbor,” and is there to serve our needs. The truth, however, is that insurers have a set of incentives that are directly opposing yours.

Insurers make greater profits when they are able to reject claims or otherwise underpay legitimate claimants. To that end, these companies have their insurance adjusters talk to claimants after an accident in the hopes that you — the claimant — will disclose sensitive information that could be used to undermine your claim later on.

For example, if you admit to the insurance adjuster that you were speeding at the time of the accident, then that disclosure could be used to reject your claim (or underpay you), even if the nuanced reality is that your speeding had nothing to do with the actual collision (i.e., it was a side-collision accident that was not caused by you).

Instead of talking to the insurer on your own, consult a qualified personal injury lawyer who can communicate on your behalf with the insurer and their adjusters. They’ll know how to approach the discussion so as to not make any sensitive disclosures that could undermine your claims.

How much does it cost to hire a car accident lawyer to represent me?

Many people are surprised to learn that hiring a car accident lawyer doesn’t have to cost you anything upfront or out-of-pocket! In fact, most plaintiffs’-side personal injury attorneys work on a contingency fee basis. This means that they don’t get paid until (and unless) you get paid compensation. If you don’t get a payout, then you don’t have to pay them anything.

In the event that your attorney does secure compensation on your behalf, they will take a percentage cut of that — it can vary from 25 percent at the low end to 40 percent (or more) at the high end, depending on a number of different factors.

Contingency fee arrangements lower the barrier-to-entry for bringing a lawsuit. Thanks to contingency fee dynamics, you can have no money at all and still work with an experienced attorney who will fight relentlessly on your behalf. Further, these dynamics incentivize the attorney to work efficiently and effectively to maximize your total compensation — that’s because the more you get paid, the more they get paid.

It’s a win-win.

Contact 1-800-THE-LAW2 for a Free Legal Consultation

If you’ve been injured in a car accident with no insurance (i.e., the defendant is an uninsured driver or is an underinsured driver), then you could be facing a unique path to securing the full damages that you’re entitled to under the law. We encourage you to connect with experienced personal injury lawyers who can help you navigate these complexities.

Contact 1-800-THE-LAW for a free legal consultation with one of the skilled local car accident attorneys in our network. During this initial consultation, you’ll have the opportunity to discuss your case in detail, and to learn about the strategic options that are available to you given the circumstances. Of course, if you decide against moving forward with your case, or with our network attorney, that’s okay, too — there’s no obligation to continue. So pick up the phone and call us today to get started!

We look forward to assisting you.