Car insurance companies often use a variety of tactics to devalue or deny valid claims. Understanding these strategies can help you navigate the claims process more effectively. Here are some common tactics:
Insurance companies may purposely drag out the claims process, hoping that policyholders will grow frustrated and accept a lower settlement or even drop the claim entirely. This may include excessive paperwork requests, slow response times, or frequent requests for additional documentation.
One of the most common tactics is offering a low settlement amount immediately. Insurers may hope that claimants, particularly those facing financial hardship after an accident, will accept a quick, but unfair, payout.
Insurers might deny your claim by disputing who was at fault in the accident, even if the liability seems clear. They may argue that you were partially or entirely responsible, which could lower or eliminate the amount you’re entitled to.
Insurance companies may employ comparative negligence laws to reduce the settlement. For example, if the policyholder is found to be partially at fault for the accident, the insurer may reduce the claim amount by that percentage.
Insurance companies may request irrelevant or excessive documentation to make the process more cumbersome and difficult for the claimant. This tactic can be used to slow the process or to find loopholes that they can use to devalue or deny the claim.
Insurers sometimes exploit complex or ambiguous language in insurance policies to deny claims. They might claim that certain damages or incidents are not covered, even if the policyholder believes they are.
Insurance companies may argue that the damage being claimed existed prior to the incident in question, effectively denying the claim by stating the damage was not caused by the accident or event in the claim.
A common tactic is to claim that there is not enough evidence to support the claim. Insurers might argue that documentation, such as medical records or repair estimates, is insufficient, forcing the claimant to provide more proof or give up.
In personal injury claims, insurance companies may attempt to devalue or deny the claim by arguing that the injuries were due to pre-existing conditions rather than the incident in question.
Insurers might employ surveillance tactics to gather evidence to dispute claims, especially in cases involving bodily injury. They could argue that footage of the claimant engaging in physical activity contradicts the severity of the reported injury.
Insurance adjusters may argue that the claimant’s medical treatments were excessive or unnecessary. They may also try to minimize the impact of the injuries to reduce the claim payout.
Some things you can do to protect yourself from your insurance company’s tactics include:
After a car accident, your recovery and peace of mind should be your top priorities. Let the skilled attorneys at Meinhart & Manning handle your insurance concerns. Get your free consultation by calling us at (877) 776-1219 or completing our online form today.