Partner at AKD Lawyers
Practice Areas: Insurance Claims
Dealing with an insurance company after an accident or property damage can be frustrating. You expect them to help you, but their main goal is to save money by paying out as little as possible. Insurance adjusters use different tactics to reduce or deny claims, making it difficult for people to get fair compensation.
If you’re not aware of these tactics, you might accept a low offer or unknowingly hurt your case. This guide will explain the tricks insurance adjusters use and how a lawyer can help you avoid mistakes and get the compensation you deserve.
How Insurance Adjusters Try to Minimize Payouts
Insurance adjusters are trained to settle claims for as little as possible. Their main objectives include:
- Denying claims outright – Finding reasons to reject your claim based on policy language or technicalities.
- Delaying the process – Making claimants wait long enough to accept a lower payout out of desperation.
- Offering quick, lowball settlements – Pressuring claimants to settle before the full extent of their damages is known.
By recognizing these strategies, you can take steps to protect yourself and ensure that your claim is handled fairly.
Common Tactics Insurance Adjusters Use
1. Quick Settlement Offers
One of the most common tricks adjusters use is offering a quick settlement. Shortly after you file a claim, they may present a check, hoping you’ll accept it before fully understanding your damages.
At first, this is a generous and hassle-free offer. But accepting a settlement too soon means you may miss out on compensation for future medical expenses, lost wages, or property damage that wasn’t initially apparent.
What You Can Do:
- Never accept the first offer without consulting an attorney.
- Wait until you have a clear understanding of the long-term effects of your injuries or damages.
- Ensure that all current and future expenses are covered before agreeing to a settlement.
2. Requesting a Recorded Statement
Adjusters may ask you to provide a recorded statement about your accident or injuries. While they may claim this is part of the standard process, their real goal is to find inconsistencies in your story that can be used against you.
For example, if you say, “I’m feeling okay,” even out of politeness, they might argue that your injuries are not serious.
What You Can Do:
- Politely declined to provide a recorded statement without an attorney present.
- Stick to the facts and avoid speculation when speaking with adjusters.
“Insurance companies may send you papers instructing you to sign them. However, you should not sign anything from an insurance company without legal representation. You could be signing away your right to receive full compensation for your injuries.”
3. Delaying the Claims Process
Another common tactic is delaying the claims process to wear claimants down. By prolonging the process, insurance companies hope that you’ll get tired of waiting and accept a lower payout to move on.
Signs of Delay Tactics:
- Adjusters claim they need additional documentation but don’t specify what’s missing.
- Long periods of silence with no updates on your claim.
- Requests for unnecessary or duplicate paperwork.
What You Can Do:
- Keep records of all correspondence with the insurance company.
- Follow up regularly and document all interactions.
- Consult an attorney to push the claim forward if delays persist.
4. Disputing Liability
Insurance adjusters often try to shift blame to the claimant to reduce their company’s Liability. In states that follow comparative negligence laws, being partially at fault can significantly reduce your settlement amount.
For example, if you were injured in a car accident, the adjuster might argue that you were speeding, even if the other driver was clearly at fault.
What You Can Do:
- Gather evidence such as photos, witness statements, and police reports.
- Do not admit fault, even casually, when speaking with an adjuster.
- Work with an attorney to build a strong case
“Insurance adjusters might request excessive amounts of documentation irrelevant to your claim. Such requests complicate the accident claims process and frustrate efforts to pursue compensation.”
5. Misrepresenting Policy Terms
Some adjusters may provide misleading information about what your policy covers. They may claim that certain damages are excluded, even when they are covered under your policy.
What You Can Do:
- Please request a copy of your policy and review it carefully.
- Do not take the adjuster’s word at face value—verify all statements with your attorney.
Legal Framework and Relevant Cases
Duty of Good Faith
Insurance companies are legally required to act in good faith when handling claims. If they engage in deceptive practices, such as unfair delays or wrongful denials, they may be acting in bad faith. In such cases, claimants may be entitled to additional damages beyond their original claim.
Bad Faith Insurance Practices
When an insurer intentionally undervalues, delays, or denies a legitimate claim without justification, this is considered bad faith. Companies that engage in these practices can be sued.
“Insurance companies may send you papers instructing you to sign them. However, you should not sign anything from an insurance company without legal representation. You could be signing away your right to receive full compensation for your injuries.”
Notable Case Example
In XYZ vs. ABC Insurance, a claimant was initially offered $5,000 for injuries that resulted in over $50,000 in medical bills. After hiring an attorney, the case was taken to court, and the jury awarded the claimant the entire $50,000 plus additional damages for bad faith practices.
Common Tactics vs. Impact
| Tactic | Description | Potential Impact |
| Quick Settlement Offers | Low initial offer before full injury evaluation | Victims may settle for less than they need |
| Requesting Recorded Statements | Extracting statements to devalue claim | Words can be twisted against the claimant |
| Delaying the Process | Prolonging claim resolution | Financial stress may force early settlement |
| Disputing Liability | Claiming claimant was partially at fault | Compensation may be reduced or denied |
| Requesting Unnecessary Documentation | Asking for excessive paperwork | Frustration and delays lead to lower payouts |
| Misrepresenting Policy Terms | Giving false policy information | Claimants may accept less than deserved |
The Role of a Personal Injury Attorney
An experienced personal injury attorney can level the playing field by:
- Review your policy to ensure you receive the coverage you deserve.
- Gathering evidence to counteract insurance company tactics.
- Handling negotiations to secure a fair settlement.
- Filing lawsuits if the insurer refuses to settle fairly
FAQs
1. Should I accept the first settlement offer from an insurance adjuster?
No, the first offer is usually much lower than your claim’s worth. Always consult an attorney before accepting any settlement.
2. Can I negotiate with an insurance adjuster myself?
Yes, but insurance companies have trained professionals who know how to minimize payouts. Having an attorney gives you a better chance of receiving fair compensation.
3. What should I do if my claim is denied?
If your claim is denied, request a written explanation and consult a lawyer to evaluate your options for appeal or legal action.
4. How long does an insurance claim take to settle?
It varies, but delays are common. If your claim is taking too long, an attorney can push for a faster resolution
5. Can insurance companies spy on claimants?
Yes, insurers sometimes monitor social media or hire private investigators to find evidence that contradicts your claim. Avoid posting about your accident online.
Conclusion
Dealing with an insurance adjuster can be overwhelming, mainly when they use tactics to minimize payouts. By understanding these strategies and working with an experienced personal injury attorney, you can protect your rights and ensure you receive the compensation you deserve.
If you’re struggling with a denied or delayed claim, AKD Alvendia, Kelly & Demarest Accident Injury Lawyers can help. Contact us for a free consultation, and let us fight for the compensation you are entitled to.
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In 2003, after being dissatisfied with the quality of legal care for victims of car accidents, Roderick ‘Rico’ Alvendia sought to establish a new firm focused on providing high-quality legal services to aid injured victims and their families. J. Bart Kelly, sharing Rico’s passion for upholding justice, joined the firm later that year, and established a partnership.
