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The Role of the Insurance Company
Before diving into tactics the insurance company uses, it’s important to understand the role the insurance company plays in your personal injury claim.
Insurance companies are responsible for compensating insured individuals for their injuries, property damage, and other losses. While their role is to provide coverage and financial support in the event of accidents, they are also for-profit businesses.
The insurance company’s goal: to minimize payouts and protect their bottom line.
These are some of the most common tactics they use to accomplish this.
Top 10 Most Common Insurance Company Tactics
The insurance companies’ tactics typically fall into one of the following strategy categories:
- Delay: Attempting to delay any form of payment for your claim.
- Deny: Outright denying that you have a valid claim.
- Defend: Attempting to rush you into accepting a lesser payment or trick you into making a mistake.
The insurance company may attempt to delay any form of payment for your claim, which may mean you’re stuck paying out-of-pocket for expenses.
Insurers are aware of the specific time constraints when filing a claim. In some cases, they will purposely send out incorrect paperwork and blame you in an attempt to delay the entire process.
The insurance company may attempt to rush you into accepting a quick settlement before you understand the full extent of your damages. This often seems like a convenient resolution, but it’s ultimately insufficient.
Be weary of quick settlement offers, as they’re almost always far less than you need or could secure. Our attorneys will be able to provide an accurate estimate of how much you should receive during your free case review.
In countless cases, insurance companies will outright deny you have a valid claim, which is why it’s important to firmly establish who is held liable for your accident and damages. This is why it’s critical to understand your policy and legal rights–all of which our attorneys can help with.
One of the most common tactics insurance companies use is to deny that their policyholder (defendant) was at fault or attempt to shift some or all of the blame onto you.
In states with strict contributory negligence laws (like Alabama), insurers only need to show that the claimant was partially at fault (even 1%) to deny compensation entirely.
This is why it’s vital to avoid making any admission of fault or apology, and advisable to seek legal representation. Any mistake or weakness in your case could mean you do not receive any compensation at all.
Insurance companies will often request recorded statements from claimants under the guise of “getting the facts” about an accident.
While this may seem like a reasonable and routine part of the claims process, it is a tactic frequently used to gather information that can be twisted or taken out of context in order to minimize or deny your claim.
For example:
- Asking leading/confusing questions designed to elicit answers that benefit their case against you
- Selectively interpreting your words to create doubt about your claim
- Highlighting any inconsistencies in your recorded statements to dispute your credibility
Insurance companies will often aim to minimize your compensation by questioning the necessity, cost, and/or origin of medical care you receive.
For example:
- Minimizing the severity of your injuries (especially if you delayed seeking treatment or missed any appointments)
- Arguing that certain treatments were unnecessary
- Disputing the cost of medical treatments (not standard rates, inflated costs, etc.)
- Challenging the necessity of your future medical needs
- Claiming pre-existing conditions are to blame
Insurance companies will often request extensive documentation as part of their evaluation process for personal injury claims.
While some requests are reasonable, insurers may use excessive or irrelevant documentation demands as a tactic to deny the claim, frustrate you, or complicate the process.
Reasonable Documentation Requests
- Police or accident reports
- Medical records and bills directly related to injuries sustained from the accident
- Proof of lost wages (e.g., pay stubs, employer letters)
- Photos/videos of the accident scene or injuries
Unreasonable Documentation Requests
- Irrelevant medical records from unrelated prior medical conditions
- Excessive employment records beyond current lost wages
- Duplicate documentation that has already been provided
- Private information unrelated to the claim (e.g., tax returns, unrelated financial statements)
Insurance companies often use complex policy language and vague explanations to confuse claimants about their coverage.
This tactic allows them to understate the benefits or exclusions in your policy, ultimately aiming to pay less than what you are entitled to under the terms of your coverage.
Always request a full copy of your policy if you do not have one.
Insurance companies will often attempt to create a false sense of urgency by claiming you must act quick or risk losing your compensation.
These false deadlines are designed to pressure you into accepting low settlement offers before you have a chance to fully understand the value of your claim.
For example:
- Insurers may generally encourage you to make hasty decisions and respond quickly to their requests under the guise of ‘getting you what you need’ as soon as possible
- Insurers may claim settlement offers are time-sensitive and set to expire
- Insurers may claim that you must file paperwork or agree to settle before an arbitrary deadline
Insurance companies will often attempt to shift blame onto you (the victim) or downplay the severity of your injuries. This is an attempt to reduce liability and justify lower settlement offers.
How to Protect Your Claim
To protect your claim and help ensure you receive fair compensation, it’s important to take steps to strengthen your case and avoid common pitfalls.
Here are some practical ways to protect your claim:
Detailed records are the foundation of a strong personal injury claim. Proper documentation helps ensure that you can substantiate your account of the accident, the severity of your injuries, and the financial impact.
Make sure to keep these documents organized:
- Police/accident reports
- Medical records – doctor’s notes, prescriptions, test results, rehabilitation plans, etc.
- Related expenses – medical bills, lost wages, travel expenses for treatment, property damage, etc.
- Communication logs – all communications with the insurance company with dates, times, and details of conversations.
An insurance adjuster will likely request a recorded statement.
Why you should decline: Insurance companies often use your statements to find inconsistencies or admissions that can reduce or deny your claim. Even innocent remarks (like “I’m feeling a bit better today”) can be misinterpreted or taken out of context.
It’s advisable to consult with an attorney before providing any recorded statement. Your lawyer can either handle communications on your behalf or prepare you for the conversation to avoid harmful mistakes.
The insurance company will likely make an early settlement offer in an attempt to close your claim quickly and for less money than it’s really worth.
An experienced personal injury attorney will be able to evaluate whether the settlement offer is fair and advise you on whether to accept or negotiate for more.
A skilled personal injury attorney can be your greatest ally in protecting your claim and navigating the complexities of dealing with insurance companies (especially in Alabama, where contributory negligence laws increase the risk of losing your chance to be compensated at all).
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How Our Personal Injury Lawyers Can Help
If you’ve been injured in southern Alabama, you’ve made it to the right place. We understand the aftermath of an accident can be overwhelming, and our team is here to make the process as easy as possible for you.
What You’ll Get When You Work With Us:
- Free consultations
- No out-of-pocket cost to you
- Stress-free experience
- 24/7 access and support
- Proven track record of great results
Our attorneys will investigate your case to collect evidence, handle communications with insurance companies, evaluate the value of your claim, protect you from bad faith insurance practices, negotiate a fair settlement, represent you in court (if needed), and provide support throughout the entire process. If you’re in Mobile, Orange Beach, Gulf Shores, Foley, Daphne, Fairhope, Robertsdale, Loxley, Spanish Fort, Bay Minette, Malbis, or the surrounding areas, contact us to get started.