4 Tactics Insurance Companies Use to Settle Claims for Less
After a crash or injury, you expect the insurance company to do what it’s there to do – evaluate the claim, pay what’s fair, and help you move on. And sometimes, that’s exactly what happens.
But insurance companies are businesses, which means their profit depends on taking in more money than they pay out. That doesn’t automatically make them “evil,” but it does mean their goals are not perfectly aligned with yours. You want to be fully compensated and they want to close the claim for as little as they can.
If you’re negotiating a settlement, it helps to know what you’re up against.
Here are four common tactics insurers use to push you into moving quickly.
- They Push You to Give a Recorded Statement Before You’re Ready
One of the first calls you get after an accident will feel routine. They’ll say something like, “We just need your statement.” The adjuster may sound calm and helpful, framing it as a simple step to “get the process moving.” But what they’re really doing is locking you into a statement before you have time to really process the details and ramifications.
Right after a wreck, you might say you “feel okay” because you’re in shock. You also might guess at details that you’re not sure about, just to give some answers. These can be costly mistakes.
The good news is that you’re allowed to be careful and patient. You can tell them you’re still getting medical care and gathering facts, and you’ll provide information when you’re able. If it’s the other driver’s insurer calling, you can be even more guarded. Their job is definitely not to protect you.
- They Make an Early Low Offer
Early settlement offers can be seductive because they show up when you’re stressed and overwhelmed. Bills are coming in, you’ve missed work, and your car is in the shop. They know that you want the whole mess to be over. So they make a quick lowball offer in the hopes that you’ll take it and run.
When it’s still early, the insurance company knows you don’t have the full picture. You probably don’t know what physical therapy will cost or how long you’ll be dealing with symptoms. You also may not know the true value of pain and suffering, or how future limitations could impact your life.
As Lipsig Law explains, “Insurers move quickly to minimize payouts. Adjusters may ask for statements, push early low offers, or suggest you don’t need a lawyer. Meanwhile, medical bills and missed work can tempt you to accept less than your claim is worth.”
The most important thing to remember is that you can’t reopen a claim after you sign away your rights. A check today can cost you much more tomorrow.
- They Downplay Your Injuries or Suggest They’re “Pre-Existing”
If you’re injured, insurers will often look for ways to shrink the connection between the accident and your symptoms. This can show up in a few different forms.
For example, the insurance company may imply you’re exaggerating. They do this by pointing out that your car “didn’t look that damaged,” as if property damage is the only measure of physical harm. Or they may emphasize that you didn’t go to the ER the same day. It’s also not uncommon for them to fixate on a prior condition, suggesting your pain was already there and the crash didn’t really cause it.
Your best defense against accusations like these is documentation. You need consistent medical treatment, clear notes in your records, and a timeline that makes it hard to argue with. If you wait weeks to get care, it becomes much easier for the insurer to claim it wasn’t serious or wasn’t related.
- They Add Pressure With Delays
Sometimes the tactic isn’t an aggressive move. They might just “ghost” you or slow play the communication. They may:
- “Review” your documents for weeks
- Transfer you between adjusters
- Request the same records multiple times.
- Respond slowly, return calls late, or claim they never received what you sent
Whatever the tactic, they know that delays will wear you down. It makes you more likely to accept a lower settlement just to move on. But this is why it helps to keep a clean paper trail. If the insurer is dragging their feet, you want to be able to show exactly what happened and when.
On a related note, be aware of deadlines. Every state has a statute of limitations, and missing it can destroy your claim. Keep this in mind as you move forward.
Don’t Negotiate From a Panic Place
Insurance claims are rarely lost because someone “didn’t try hard enough.” They’re usually lost because people rush into decisions without understanding the long-term cost. But when you know the tactics, you can slow things down and respond thoughtfully. This ensures you’re able to make smart decisions that help you live life on your terms moving forward.
