What Do Insurance Companies Not Want You to Know?
Insurance companies work hard to avoid paying more than necessary for accidents and injuries caused by their policyholders. They employ trained adjusters and use proven strategies designed to minimize payouts on personal injury claims. Understanding these common tactics insurance companies use can help protect your rights and your financial recovery.
After an accident, injury victims face mounting medical bills, lost wages, and pain while navigating the claims process. Insurance adjusters may seem friendly and helpful, but their primary goal is to save money for their employer, not to ensure you receive fair compensation. Working with an experienced personal injury attorney gives you a better chance of receiving the full settlement you deserve.
Gary W. Johnson Personal Injury Law has extensive experience handling and negotiating with insurance companies on behalf of injured clients. We understand the tricks insurance companies use to undervalue claims, and we know how to counter their tactics effectively. Our team will fight to protect your best interests and help you get the fair compensation you deserve after being injured in an accident that was someone else’s fault. Schedule a free consultation today to learn how we can help with your injury claim.
What Are an Insurance Company’s Top Priorities?
Despite what their advertising suggests, insurance companies are for-profit businesses. Their priorities often conflict with what injury victims need. Here’s what drives their decision-making:
- Maximizing profits: Insurance companies answer to shareholders and investors. Paying less on claims means more money in their pockets.
- Minimizing payouts: Every dollar paid to you is a dollar less in profit. Adjusters are trained and often incentivized to settle claims for as little as possible.
- Protecting their bottom line: Many insurance companies set internal benchmarks for claim settlements. Adjusters who consistently pay less may receive bonuses or promotions.
- Processing claims quickly: Speed benefits the insurance company, not you. Quick settlements often happen before injury victims understand the full extent of their injuries or future medical treatment needs.
- Avoiding civil litigation: Taking a case to court costs insurance companies significant money in legal fees. They prefer to pressure injured people into accepting low settlement offers early.
These priorities explain why insurance adjusters may not have your best interest at heart, even when they seem friendly and concerned during phone calls.
What Are Some Common Tactics Insurance Companies Use to Minimize Payouts?
Insurance companies have developed numerous strategies to reduce payouts on personal injury claims. Recognizing these tactics can help you avoid falling victim to them.
Delaying the Claims Process
Insurance companies know that injury victims need money for medical bills and lost wages. By dragging out the process, they create financial pressure that may force you to accept a low settlement just to pay your bills. Delays can involve requesting unnecessary documentation, being slow to respond to communications, or claiming they need more time to investigate obvious facts.
Making Lowball Settlement Offers
One of the most common tactics insurance companies use involves making an initial settlement offer far below what your claim is worth. They hope you’ll accept quickly without understanding the true value of your injuries, future medical treatment costs, or long-term impacts on your life. A low-ball offer often comes before you’ve finished medical treatment or know the full extent of your damages.
Requesting Recorded Statements
An insurance adjuster may ask for a recorded statement shortly after your accident. They present this as routine, but it’s actually a tactic to gather evidence they can use against you later. During these statements, adjusters ask leading questions designed to get you to downplay your injuries, accept partial blame, or contradict yourself. Anything you say can be used to devalue or deny your claim altogether.
Asking for Blanket Medical Authorization
Insurance companies may request that you sign a medical authorization form granting them access to your complete medical history. This goes far beyond what they need to evaluate your current injury claim. They search your medical records looking for pre-existing conditions or past injuries they can blame for your current condition, allowing them to argue your injuries aren’t as severe or weren’t caused by their policyholder.
Disputing Liability
Even when their policyholder is clearly at fault, insurance companies may argue about who caused the accident. They might claim you share partial or complete blame, which reduces or eliminates what they have to pay. This tactic involves distorting witness statements, misinterpreting police reports, or disputing traffic laws.
Questioning Medical Treatment
Insurance adjusters often challenge the medical treatment you receive. They may argue certain treatments weren’t necessary, claim you’re exaggerating your injuries, or suggest you should have recovered by now. Some insurance companies use their own medical experts to review your records and provide opinions that minimize your injuries—opinions designed to justify paying you less money.
Pressuring Quick Settlements
Adjusters create urgency by suggesting their offer won’t remain available long or implying that waiting will somehow hurt your claim. This pressure tactic aims to get you to settle before consulting a personal injury attorney who can help you understand the true value of your claim.
Using Surveillance
Some insurance companies hire investigators to follow claimants and record their activities. They hope to catch you doing something that contradicts your claimed injuries, even if what they capture is misleading or taken out of context. A brief moment of activity during a good day doesn’t mean you’re not genuinely injured.
Will My Own Insurance Company Protect Me?
Many people assume their own car insurance company will protect them from unfair dealings by the at-fault party’s insurance provider. Unfortunately, this is rarely the case.
Your insurance company is also a business focused on profits. Even when you’re dealing with uninsured or underinsured motorist coverage through your own policy, your insurer will still use many of the same tactics to minimize what they pay. They may be slightly more cooperative since you’re their customer, but their financial interests still come first.
Your own insurance company has no legal obligation to advocate for maximum compensation. They’re required to handle claims in good faith and follow the terms of your insurance policies, but “good faith” doesn’t mean they’ll fight to get you every dollar you deserve. They’ll still question medical bills, challenge the extent of injuries, and offer lower settlements than what your claim may be worth.
This reality underscores the importance of having a personal injury attorney. An experienced lawyer protects you from all insurance companies—including your own—and ensures you’re not taken advantage of during a vulnerable time.
What Should I Say and Do When Dealing With an Insurance Adjuster?
Knowing how to interact with insurance adjusters can protect your claim. Follow these guidelines when dealing with any insurance company after an accident:
- Refer them to your attorney: Once you hire a personal injury attorney, let the adjuster know all future communication should go through your lawyer. This protects you from their tactics.
- Be polite but cautious: You can be courteous without volunteering unnecessary information. Remember that adjusters are trained to use your words against you.
- Provide only basic facts: Share your name, contact information, and basic details about when and where the accident occurred. Don’t elaborate or speculate about what happened.
- Don’t give a recorded statement: Politely decline to provide a recorded statement without first consulting a personal injury attorney. You’re typically not legally required to give one to the other party’s insurer.
- Never admit fault: Don’t apologize or say anything that could be interpreted as admitting fault, even if you’re trying to be polite. Statements like “I didn’t see them” can be twisted to suggest you caused the accident.
- Don’t discuss your injuries in detail: Avoid describing the full extent of your injuries, especially early on. You might not yet know how serious they are or what medical treatment you’ll need.
- Don’t sign anything without review: Never sign documents, medical authorization forms, or settlement agreements without having an attorney review them first.
- Don’t accept the first offer: Initial settlement offers are almost always lower than what your claim is worth. Don’t feel pressured to accept immediately.
- Document everything: Keep records of all phone calls, emails, and correspondence with insurance companies. Note dates, times, and what was discussed.
- Continue medical treatment: Follow your doctor’s recommendations and attend all appointments. Gaps in treatment give insurance companies ammunition to claim you’re not really injured.
The best approach is to contact a personal injury attorney early in the process. Your lawyer can handle communications with insurance companies, protecting you from making statements that could hurt your claim.
Should I Hire An Attorney To Handle the Insurance Company?
After an accident, you might wonder if hiring a personal injury attorney is necessary. While not every case requires legal representation, having an experienced lawyer significantly improves your chances of receiving fair compensation, especially when dealing with serious injuries or insurance companies using aggressive tactics. Outlined below are some ways a personal injury lawyer can help you as you navigate the insurance claims and legal process.
Accurate Claim Valuation: Attorneys understand how to calculate the true value of personal injury claims. They consider current and future medical bills, lost wages, property damage, pain and suffering, and long-term impacts on your life. This ensures you don’t settle for less than your claim is worth.
Handling All Communications: Once you hire an attorney, you no longer have to deal with insurance adjusters directly. Your lawyer manages all phone calls, correspondence, and negotiations, protecting you from tactics designed to undermine your claim.
Investigating Your Accident: The best personal injury lawyers conduct thorough investigations, gathering evidence like police reports, witness statements, accident scene photos, and expert opinions. This documentation strengthens your claim and makes it harder for insurance companies to dispute liability.
Negotiating Settlements: Experienced lawyers know how to negotiate with insurance companies effectively. They understand industry practices, know when offers are unfairly low, and have the skills to push for better settlements.
Accessing Medical Experts: Attorneys work with medical professionals who can document your injuries, explain your treatment needs, and testify about your prognosis. These medical experts counter insurance company doctors who minimize injuries.
Understanding Policy Limits: Lawyers identify all available insurance coverage, including underinsured motorist policies that could provide additional compensation. They ensure you don’t leave money on the table because you weren’t aware of all coverage options.
Filing Lawsuits When Necessary: If insurance companies refuse to offer fair compensation, your attorney can file a lawsuit and take your case to civil litigation. Many insurance companies become more reasonable once they face the prospect of going to court.
Working on Contingency: Most personal injury attorneys work on a contingency fee basis. You pay nothing up front and only pay legal fees if they recover compensation for you. This arrangement means you can afford experienced legal representation regardless of your financial situation.
Protecting Against Insurance Company Tactics: Attorneys recognize and counter the tricks insurance companies use to minimize payouts. They prevent you from being recorded saying something damaging, signing away your rights, or accepting settlements that don’t cover your needs.
Having legal representation levels the playing field. Insurance companies have teams of lawyers protecting their interests. You deserve the same protection for yours.
Why Should I Choose Gary W. Johnson Personal Injury Law?
At Gary W. Johnson Personal Injury Law, we’ve built our practice on fighting for injury victims against insurance companies that try to avoid paying fair compensation. We understand the pressure and confusion you’re experiencing after an accident, and we’re here to help.
Our team brings extensive experience handling personal injury claims arising from car accidents, workplace injuries, and other cases where another party’s negligence caused harm. We know how insurance companies operate because we’ve negotiated with them countless times. We recognize their tactics, understand their strategies, and know how to push back effectively.
When you work with us, you’re not just another claim number. We take time to understand your unique situation, explain your options clearly, and develop a strategy tailored to your specific needs. We handle all communications with insurance companies, allowing you to focus on recovering from your injuries while we fight for the money you deserve.
We conduct thorough investigations, gather strong evidence, consult medical experts, and build compelling cases that insurance companies can’t easily dismiss. Whether negotiating a settlement or taking your case to court, we’re committed to pursuing maximum compensation for your medical bills, lost wages, pain and suffering, and other damages.
Our contingency fee structure means you risk nothing by hiring us. We only get paid when we win compensation for you, and our fees come from the settlement or verdict—not from your pocket upfront. This arrangement aligns our interests with yours; we’re committed to delivering the best possible outcome for you.
If you’ve been injured in an accident caused by someone else’s negligence or wrongdoing, don’t face the insurance company alone. Their adjusters and lawyers protect their interests—we protect yours. Contact Gary W. Johnson Personal Injury Law today to schedule your free consultation. Let us put our experience to work fighting for the fair compensation you deserve.
