The Art Of Negotiation: Understanding Insurance Adjuster Tactics

Insurance adjusters play a critical role in the outcome of personal injury and property damage cases. While some insurance adjusters work hard to review all relevant details and arrive at a fair conclusion, others may use unethical tactics.

Here are some signs that an insurance adjuster is lowballing you:

- The settlement offer comes too fast.

- They pressure you to accept.

- They ignore or dismiss evidence.

- They won't explain the math behind the offer.

- They suddenly stop communicating.

If you believe you are being lowballed, it is recommended that you consult with an experienced personal injury attorney who can fight for a fair settlement offer on your behalf.

Insurance adjusters lowball as companies don't want to pay more than necessary

Insurance adjusters lowball because insurance companies are for-profit corporations that want to make money by paying out as little as possible. They know that many people will accept lowball offers, especially when they are under financial pressure or are not familiar with the claims process.

Insurance companies also use various tactics to devalue claims. For example, they may pressure claimants to accept an offer quickly, ignore or dismiss evidence, or question the extent of the claimant's injuries. They may also use computer software to calculate settlement amounts, which can result in unfair offers that do not adequately consider the unique circumstances of each case.

To avoid being lowballed, it is essential to seek legal representation from an experienced personal injury attorney. An attorney can review settlement offers, negotiate with insurance adjusters, and fight for a fair amount that covers all the claimant's losses. They can also guide claimants through the claims process, ensuring they do not inadvertently say or do anything that could harm their case.

They assume most claimants lack experience negotiating

Assuming that most claimants lack negotiating experience is a common pitfall that can lead to missed opportunities and unsatisfactory deals. Here are some insights to help you navigate this challenge:

• The Curse of Knowledge: Experts tend to assume that others have the same level of understanding as they do. In negotiations, this can lead to ambiguous communication and frustration. To counter this, take a step back and consider how a novice might perceive the situation. Ensure that you explain information clearly and confirm that the other party understands your perspective.
• Planning and Preparation: Successful negotiators make detailed plans. They know their priorities, alternatives, and bottom lines. Understand your rights and entitlements under your insurance policy, and don't be afraid to challenge the adjuster's first offer if you can justify a higher amount.
• Broaden Your Perspective: Consider the negotiation from a broader perspective. Focus on the other party's interests, priorities, and alternatives. Recognize that they may also be eager to reach an agreement, which creates a motivation to ensure a deal is struck.
• Confidence and Enthusiasm: Portray confidence and enthusiasm in your negotiations without appearing desperate. This can be achieved by improving your negotiation skills, seeking feedback, and addressing your underlying tendencies rather than just changing surface behaviour.
• Practice and Role-playing: Practice your negotiation skills beforehand to calm your nerves. Role-playing important negotiations with trusted colleagues or friends can help you refine your approach and receive valuable feedback.
• Compromise and Flexibility: Be willing to compromise and consider alternative solutions. If you encounter pushback on your desired salary, for example, be open to a counteroffer and suggest a timeline for reviewing your salary again in the near future.
• Attention to Detail: Take notes or record conversations during negotiations. This helps clarify key points, resolve disputes, and ensure that any final settlement aligns with what was verbally agreed upon.
• Honesty and Politeness: Honesty and politeness are crucial in negotiations. Exaggerating or providing untrue information can lead to a denial of your claim and potential legal consequences. Treat the adjuster with respect, and focus on building a pleasant and productive negotiation dynamic.

They pressure claimants to accept quickly, before an attorney is consulted

Insurance adjusters may pressure claimants to accept a settlement offer quickly, before they can consult an attorney. This is known as "third-party capture" in the industry. The goal is to settle claims as quickly and cheaply as possible, and insurance companies can save money by cutting out the expensive middleman—the lawyer.

Insurers have been accused of urging accident victims to waive their right to compensation or to settle for less than they should. For example, in one case, an insurance company offered £4,000 in 'full and final settlement', but the case was eventually settled for £35,000. In another case, bereaved parents who lost their three children in a road accident were offered £21,000, but the claim was settled for £60,000.

Insurance adjusters may provide a deadline by which the claimant must accept the settlement offer. These deadlines are often attached to pressure claimants to accept the offer quickly and resolve the claim. It is important to note that there is no industry standard for how long a claimant has to accept an offer, and some adjusters may simply expect an answer within a reasonable amount of time.

Claimants should be aware that they have the right to consult an attorney before accepting any settlement offer. An attorney can provide valuable guidance and ensure that the claimant's rights and best interests are protected. Attorneys are familiar with the legal process and can represent claimants in negotiations with insurance companies. They can also help claimants understand the value of their claim and whether the settlement offer is fair.

It is generally not advisable to accept a settlement offer without first consulting an attorney. By doing so, claimants may waive their rights to seek additional compensation or take legal action in the future.

Adjusters ignore evidence, downplay injuries, and question damages

Adjusters will ignore or dismiss evidence of liability, and if they can shift blame onto the claimant, even partially, they can reduce the amount of money paid out. They will also try to pay out as little as possible for injuries, often by implying that the injuries are the result of a pre-existing condition.

In addition, adjusters will try to rush through medical documentation, police reports, and proof of damages, focusing on paying out as little as possible, rather than considering the full impact of the accident on the claimant's physical, emotional, and financial health.

Adjusters also try to pressure claimants into accepting a low settlement offer quickly, before they have had time to consult an attorney, who could help them negotiate a fairer settlement.

It is important to remember that adjusters are not on your side. If you are dealing with an insurance adjuster, it is recommended that you hire a lawyer to advocate for you and handle all interactions and negotiations with the adjuster.

They use unethical tactics, like threatening to rescind offers

Threatening to rescind offers is an aggressive negotiation tactic. It is a form of intimidation, which is an unethical negotiation strategy. Intimidation involves using threats or aggressive tactics to pressure the opposing party to choose a proposal. This strategy may make the opposing side feel threatened and under pressure, resulting in an unjust negotiation result.

Unethical negotiation tactics can have severe repercussions for both sides. The parties utilising unethical methods risk losing business prospects and harming their reputation. If their conduct is determined to be fraudulent or unlawful, they can also face legal consequences.

The party that’s the target of unethical techniques could experience financial losses, reputational harm, and a decline in customer confidence. Due to the injustice of the bargaining process, they could also experience psychological harm like stress or anxiety.

It is important to observe warning indicators of unethical negotiation, such as a lack of openness or transparency in exchanges, aggressive behaviour, deals that sound too tempting, last-minute deal modifications, refusing to share information or respond to inquiries, and using vague language or technical terminology.

If you think the other side is negotiating unethically, you can respond by directly confronting the behaviour, requesting a pause in the negotiation to speak with a qualified legal or financial expert, or leaving the negotiation or taking legal action if the unethical behaviour persists.

Frequently asked questions