Insurance Company Lowball Tactics

When you file an insurance claim, you expect to be treated fairly and receive compensation that aligns with your policy and the extent of your damages. Unfortunately, insurance companies are profit-driven entities and are incentivized to minimize claim payouts. Understanding the typical tactics that can be used by insurers to minimize payouts can help you navigate the claims process and advocate for the compensation you deserve. Below are some common methods insurance companies can employ to reduce claim payouts.

1. Delaying the Claims Process

One of the most frustrating tactics insurers can use is unnecessarily delaying the claims process. They may ask for additional documentation, repeatedly request information you have already provided, or simply drag their feet without explanation. Their goal might be to wear you down so you either accept a lower settlement or abandon your claim altogether.

Tip: Keep detailed records of all communications and promptly respond to requests to minimize delays. If delays become excessive, consider seeking legal assistance.

2. Disputing Liability or Causation

Insurance companies may attempt to shift blame or dispute liability or causation to reduce the amount they owe. By casting doubt on who was at fault or what caused the underlying damages, insurers may seek to justify a lower settlement offer.

Tip: Gather as much evidence as possible, including photos, witness statements, and police reports, to establish a clear account of events.

3. Offering Quick, Low Settlements

After an incident, insurers may offer a quick, lowball settlement hoping that you will accept it without fully understanding the value of your claim. These initial offers often come before you have time to assess the full extent of your damages, including long-term medical expenses or repair costs.

Tip: Don’t rush to accept the first offer. Take the time to evaluate the total impact of the incident and consult with professionals if needed.

4. Questioning the Validity of Medical Treatments

For personal injury claims, insurance adjusters may scrutinize your medical treatments, arguing that they were unnecessary, excessive, or unrelated to the incident. This tactic may permit them to reduce the portion of the claim allocated to medical expenses.

Tip: Follow your healthcare provider’s recommendations and keep detailed records of your treatments. A comprehensive, documented medical history can help counter any attempts an insurance company may make to dispute the necessity of your care.

5. Downplaying Property Damage

Insurance companies may underestimate the cost of repairs or the extent of property damage. They might use their own adjusters who provide lower repair estimates or assert that certain damages are unrelated to the incident.

Tip: Obtain independent repair estimates and document all damages thoroughly with photos and receipts.

6. Misinterpreting Policy Language

Another common tactic insurance companies could use to reduce claim payments is to misrepresent or selectively interpret policy language to deny or reduce coverage. Insurers may claim that certain damages are excluded under the terms of your policy or that your policy limits are lower than you believe.

Tip: Review your policy carefully and seek clarification on any confusing terms. If you suspect unfair interpretation, consult with an insurance expert or attorney.

7. Blaming Pre-Existing Conditions

For injury claims, insurers may attempt to attribute your injuries to pre-existing conditions rather than the incident in question. For property damage claims, insurers may take the position that your damage was caused by an earlier, unrelated event. This allows them to deny or significantly reduce your claim payout.

Tip: Obtain statements from medical professionals that clearly link your injuries to the incident. Detailed medical documentation can help counter this argument. Similarly, document the condition of your property, including your personal property, intermittently so that insurers cannot argue that any damage that you may be claiming existed before the damage-causing event.

8. Using Recorded Statements Against You

Insurance adjusters often request recorded statements from claimants under the guise of clarifying facts. However, they may later use your words out of context to undermine your claim.

Tip: Be cautious about providing recorded statements without legal representation. Stick to factual information and avoid speculation.

Conclusion

Insurance companies are skilled at employing tactics to minimize claim payouts, but understanding these strategies can help you protect yourself. By staying informed, keeping detailed records, and seeking professional guidance when necessary, you can navigate the claims process more confidently and increase your chances of receiving a fair settlement.

If you suspect your insurer is using these tactics to minimize your insurance payment, Averill & Reaney can help. Our experienced attorneys specialize in holding insurance companies accountable, ensuring you receive the full benefits of your policy. Contact Averill & Reaney today for a free consultation and let us fight for what you deserve.