The Unbiased Truth: Navigating The World Of Insurance Adjusters

Are insurance adjusters fair? This is a question many people ask themselves after being involved in an accident. Dealing with insurance companies can be emotionally challenging, and insurance adjusters are trained to negotiate and settle claims for the lowest possible payout. They are not on your side and will use various tricks and tactics to reduce the amount of money you receive. However, there are ways to protect yourself and ensure you get a fair settlement.

Insurance adjusters are hired by insurance companies to investigate and evaluate claims

The role of an insurance adjuster is to act in the best interests of the insurance company and save them as much money as possible. They do this by inspecting property damage, interviewing the claimant and witnesses, reviewing medical records, and gathering other relevant information. Adjusters then use this information to negotiate a settlement with the claimant.

It's important to remember that insurance adjusters are not objective parties and may use various tactics to reduce the amount of money paid out by the insurance company. For example, they may delay communication, request unnecessary medical records, or try to get the claimant to admit fault. As such, it is recommended that claimants hire a lawyer to help them navigate the claims process and ensure they receive a fair settlement.

They are not on your side and will try to minimise payouts

Insurance adjusters are employed by insurance companies, and as such, their primary objective is to resolve claims as quickly and cheaply as possible. This means that they are not on your side and will try to minimise payouts.

Insurance adjusters are trained to be friendly and appear professional and sympathetic. However, their friendliness is a tactic to get claimants to open up and reveal information that could be used against them to reduce the settlement amount. They will also use delay tactics, such as not answering calls, to frustrate claimants into accepting a lower settlement.

Adjusters will also try to get claimants to admit shared liability or fault in the incident that led to the insurance claim. They will ask questions designed to get claimants to inadvertently admit partial responsibility for the incident. For example, in the case of a car accident, they might ask, "What more could you have done to avoid the accident?" or make statements like, "I understand it rained that day. How much of an effect do you think the slick roads had?".

Insurance adjusters will also request access to claimants' medical records, which they can use to blame the incident on a pre-existing condition. They may also request that claimants undergo an independent medical examination with a doctor of their choosing.

It is important to remember that you do not have to speak to insurance adjusters and that you can refuse to give recorded statements. It is recommended that you consult with an attorney before speaking to an insurance adjuster to ensure that your rights and interests are protected.

Adjusters use various tactics to reduce settlements, including delay tactics

• Incremental information requests: Adjusters may ask for information piece by piece, spreading out the requests over several weeks. This is often a stalling tactic, as adjusters typically know what information they need at the beginning of the claim process.
• Changing representatives: While it is understandable for a company to change representatives, doing so frequently can be a stalling tactic. If you encounter multiple representatives from the insurance company, they may be trying to delay the process.
• Unnecessary information requests: Adjusters may request an excessive or unreasonable amount of information, such as unrelated health records or additional statements. This tactic can be used to confuse and frustrate claimants.
• Delay in investigation: Adjusters may take an excessively long time with the investigation phase, hoping to wear down claimants and motivate them to accept a lower settlement.
• Low initial settlement offers: Adjusters may make a low initial offer to test the claimant's willingness to accept any settlement. By delaying a reasonable offer, they aim to pressure claimants into accepting less than they deserve.
• Statute of limitations: Adjusters may stall long enough for the statute of limitations to come into effect, causing policyholders to miss their deadline for filing a claim.
• Misinterpreting the law: Adjusters may misinterpret or misrepresent the law to delay the case or devalue the claim. They may try to convince claimants that they are not entitled to certain damages or that there are limitations on their recovery.

To counter these tactics, claimants should be persistent and well-informed about their rights and the claims process. It is crucial to seek legal advice and not hesitate to escalate the issue to supervisors or take legal action if necessary.

They are trained negotiators and will try to get you to accept a low offer

Insurance adjusters are trained negotiators who will try to get you to accept a low offer. While it is important to remember that they are not necessarily being malicious by offering a lower amount, it is also crucial to understand the tactics they may employ and how to respond.

Firstly, insurance adjusters may use a tactic called "Pencil Sharpening", where they make a low initial offer and then push back on any counteroffers, trying to get you to drop the price. A good response to this is to ask them why they think the offer should be lower and to focus on your differentiation and the value you bring. It is often better to add more value instead of simply dropping the price.

Another tactic they may use is "Good Cop, Bad Cop", where they bring in a "bad cop" later in the negotiations to try to lower the price or reopen closed issues. To counter this, you can also bring your own "bad cop" or have a cheat sheet with your value offerings to help you remain confident and not get pushed around.

Additionally, insurance adjusters may try to "Split the Difference", suggesting a middle ground that seems fair but may not be in your best interest. In this case, it is important to remember that meeting in the middle is not always fair and can set a precedent for future negotiations. Instead, focus on other levers besides price, such as adding more value.

It is also important to be aware of your "BATNA" (Best Alternative to a Negotiated Agreement) and be willing to walk away if necessary. This can help you maintain your power in the negotiation and avoid caving to a low offer.

Finally, insurance adjusters may try to use emotional tactics or express disappointment to get you to lower your offer. It is crucial to remain professional and not let their theatrics rattle you. Suggest taking a short break to cool down and refocus on objectives.

Remember, negotiation is a skill that takes practice and experience to master. By understanding these tactics and responding effectively, you can achieve a fair outcome that meets your objectives and protects your interests.

Hiring a lawyer can help you get a fairer settlement

• Protection from unfair insurance practices: Insurance adjusters work for insurance companies and are trained to minimise payouts. They may employ various tactics, such as delay tactics, requesting medical records to blame pre-existing conditions, or using your own statements against you, to reduce the settlement amount. A lawyer can protect your interests and ensure you don't fall prey to these tactics.
• Negotiation skills and experience: Lawyers are skilled negotiators who understand the intricacies of the law and the claims process. They can collect evidence, calculate the value of your claim, and negotiate with insurance companies on your behalf, potentially resulting in a higher settlement amount.
• Reduced stress and hassle: Dealing with insurance companies and adjusters can be emotionally challenging and time-consuming. A lawyer can handle all communications and paperwork, allowing you to focus on your recovery.
• Improved settlement outcomes: Studies have shown that hiring a lawyer can result in significantly larger settlements. For example, a study by the Insurance Research Council (IRC) found that accident victims who hired lawyers received 40% more in insurance settlements than those who didn't.
• Advocacy and support: A lawyer acts as your advocate and can take over all communications related to the accident. They will work to protect your rights and ensure you receive a fair settlement that covers your current and future financial losses.
• Legal expertise: Lawyers have the legal knowledge and experience to navigate the complex world of insurance claims and settlements. They can provide guidance on your specific situation and help you make informed decisions.
• Peace of mind: Knowing that someone experienced is handling your case can give you peace of mind during a stressful time.

Frequently asked questions