Negotiating With Insurance Adjusters: Strategies For A Successful Plea

Dealing with insurance adjusters can be a tricky business. It's important to remember that they are not on your side and are paid to calculate the lowest possible compensation on behalf of the insurance company. They are trained to trick you into saying the wrong things, and any information you give them can be used against you. So, what's the best way to handle them?

Firstly, be prepared for first contact. The adjuster will likely request a recorded statement and ask for access to your medical records, but you are not legally required to give these things, and you should be very wary of doing so. You should also be careful not to give too many details about the accident or your injuries at this early stage. It's a good idea to politely tell the adjuster that you need a few days to prepare.

Throughout the process, it's important to remain calm and polite, and to keep a log of all your interactions with the adjuster. You should also be aware that adjusters often employ stalling tactics, and may even ignore you altogether, in the hope that you will give up or miss the deadline for filing a lawsuit. If you feel that an adjuster is treating you unfairly, you can speak to their supervisor or file a complaint.

Finally, consider hiring a public adjuster or an attorney to help you negotiate and ensure that you receive a fair settlement.

Avoid giving recorded statements

It is generally best to avoid giving recorded statements to insurance adjusters. Here are some reasons why:

Recorded Statements Can Be Used Against You

Recorded statements rarely benefit those making an insurance claim. Insurance providers use recorded statements to get claimants to say things that can later be twisted and used against them. For example, if you say you didn't incur any injuries from a crash but start to notice symptoms later on, the insurance company can use your original statement to deny benefits.

You Are Not Obliged to Give a Recorded Statement

You are not legally required to provide a recorded statement to an insurance company. If you are asked for one, simply say no. It is in your best interest to delay the call if you are overwhelmed or in pain from your accident.

Recorded Statements Can Be Manipulative

Insurance adjusters can be extremely manipulative and try to convince you to enter a settlement that does not reflect the total monetary amount you are entitled to. While adjusters may come off as friendly, they are not on your side. They are trained to ask questions designed to catch inconsistencies in your story. They may ask the same question multiple times, but worded differently, to get you to slip up.

Recorded Statements Can Be Inaccurate

When you're in an accident, the resulting adrenaline surge can delay the full appearance of symptoms or mask the severity of your injuries for several days. However, the insurance company wants to rush to a settlement to avoid a lengthy process and may contact you within 24 hours of the accident to ask you to describe your injuries.

Recorded Statements Can Be Compared to Other Statements

Shortly after an accident occurs, you'll give a statement to the police, even though you may still feel rattled. If you move forward with a lawsuit, you will give a deposition to opposing counsel about the accident and events surrounding it. If you also provide a recorded statement to the opposing insurance company, all three statements can be compared for inconsistencies. Even if you didn't intentionally tell a different version of the story, it may be easier for the opposing insurance company to find even a small inconsistency, which could hurt your case.

Be careful what you say

When dealing with insurance adjusters, it's crucial to remember that they are not on your side. Their primary goal is to protect their company's interests and resolve claims with minimal liability and financial cost. Therefore, it's essential to be cautious about what you say to avoid jeopardising your claim. Here are some key points to keep in mind:

Never Admit Fault or Apologise:

Admitting fault or using apologetic language can significantly weaken your case. Even if you believe you are at fault, wait for an official investigation to determine the facts. Statements like "I'm sorry" or "It was my fault" can be used against you, and the adjuster may try to shift blame or find ways to absolve their company of responsibility.

Avoid Speculating or Giving Opinions:

Refrain from speculating about what happened or providing opinions. Stick to the facts and only provide information that you know to be true. If you don't know the answer to a question, politely decline to comment. Speculative statements can be twisted and used against you later, so keep your answers concise and truthful.

Don't Provide Details About Your Injuries:

While it's natural to want to discuss your injuries, it's best to refrain from providing details at this stage. The full extent of your injuries may not be apparent immediately, and you don't want to downplay or underestimate their severity. Inform the adjuster that you will disclose information about your injuries through a formal demand letter or with the assistance of your attorney.

Refuse to Give Recorded Statements:

You are not legally obligated to provide a recorded statement. Recorded statements can be used against you, and it's easy to get tripped up by misleading questions. Politely decline and inform the adjuster that you prefer to provide information in writing or through your attorney.

Don't Accept the First Settlement Offer:

The initial settlement offer is often a lowball amount, and adjusters hope that you'll accept it without question. Consult with an attorney before considering any settlement offers to ensure you receive fair compensation. Remember, once you accept a settlement, you waive your rights to seek additional compensation.

Be Wary of Friendly Adjusters:

Insurance adjusters may come across as friendly and sympathetic, but remember, they are not your friends. They are trained to use these tactics to lower your guard and get you to say something that could hurt your claim. Maintain a professional and polite demeanour, but don't let your guard down.

Hire an Attorney:

Consider hiring an experienced attorney who can handle communications and negotiations with the insurance company on your behalf. Attorneys know the tricks of the trade and can help protect your rights and maximise your potential compensation.

Understand the insurance adjuster's role

Understanding the role of an insurance adjuster is crucial before engaging with one. An insurance adjuster, also known as a claims adjuster, is a person who investigates insurance claims on behalf of an insurance company to determine if the insurer should pay for damage or injuries, and if so, how much they should pay. They act as intermediaries between policyholders and insurance companies, ensuring fair resolutions.

The adjuster's primary objectives are to prevent insurance fraud, settle claims quickly, and settle claims for a low amount. They handle a high volume of claims, often dealing with 100 or more cases per month. As such, they may employ various tactics and tricks to undervalue your claim. Therefore, it is essential to be cautious about what you say and provide only the necessary information.

Adjusters are typically employed by insurance companies and can be either salaried employees or independent contractors. They receive extensive training and are often required to meet specific licensing or certification requirements. They may focus on property damage claims, liability claims, or handle multiple areas.

When you file a claim, the adjuster will review the details, collect statements from those involved, inspect the damage, review reports and records, and determine the settlement amount. They will communicate with you throughout the process and negotiate the final settlement on behalf of the insurance company. It is important to remember that the adjuster represents the insurance company and their goal is to protect their employer's interests and minimise payouts.

To effectively deal with an insurance adjuster, it is recommended to have your own independent adjuster or seek legal advice. By understanding their role and tactics, you can better protect your interests and maximise your claim settlement.

Be prepared for first contact

Soon after an accident, you will likely be contacted by an insurance adjuster. It is important to be prepared for this first contact as the adjuster will probably request a recorded statement and ask you to sign a release for access to your medical records. Here are some tips to help you navigate this initial interaction:

• Understand the role of the insurance adjuster: The adjuster works for the insurance company and their priorities are to prevent fraud, settle claims quickly, and for a low amount. They are not on your side, and they will use various tactics to try to get you to accept a lower settlement.
• Don't be fooled: You are not legally required to give a recorded statement or sign a medical release form. If you choose to give a statement, be careful as you will be bound by what you say. If you're not ready, politely ask for a few days to prepare. Never give a recorded statement when you are tired, upset, in pain, or under the influence of medication.
• Provide limited personal information: Give the adjuster your full name, address, phone number, and employment details. Avoid discussing anything else about your work, schedule, income, medical history, or other personal details.
• Refuse to give details about the accident or your injuries: Politely refuse to give a statement about the accident, beyond basic information such as the location, date, type of accident, vehicles involved, and the identity of any witnesses. Regarding your injuries, simply state that you are "still treating" and leave it at that.
• Don't settle immediately: The adjuster may try to pressure you into accepting a quick and low settlement before you fully understand the extent of your injuries and the value of your claim. Resist this push and make it clear that you will not be discussing settlement offers until you have fully recovered and completed your treatment.
• Set limits on conversations: Let the adjuster know that you will not be discussing much on the phone and that you intend to set clear limits on any further phone contact.
• Document everything: Keep a notebook or diary to document all communication with the insurance company. Create a paper trail by sending follow-up emails or letters to confirm representations and promises made by the adjuster.
• Be proactive: Provide your insurer with proof of your losses and ask for the compensation you are entitled to. Don't wait for them to tell you how much they owe you.
• Maintain a professional attitude: Remember that you are in a business negotiation, so keep the interaction professional. Don't share personal details or use the adjuster as an outlet to vent your emotions.
• Consult an attorney: If possible, consult an attorney before speaking to the insurance adjuster. An attorney can guide you through the process, protect your interests, and ensure you receive a fair settlement.

Know when to hire a public adjuster

Public adjusters are licensed professionals who work for policyholders, not insurance companies. They are trained in understanding the language of insurance policies and can help you navigate the complex process of filing a claim. They can also help ensure that all damages are accurately documented and properly valued, and that your claim is settled in a fair and efficient manner.

• You need to document, file, and prove a claim, especially if it is relatively large or has many complicating factors.
• You don't fully understand the insurance policy's language or the depth of your coverage. Public adjusters can help you identify covered damages and ensure your claim is properly documented and presented to the insurance company.
• You don't have time to deal with the insurance claims process. This is especially true if you are a business owner or have other responsibilities outside of the insurance claim to handle.
• The insurance company is not answering in a timely manner, or you feel they are not adequately evaluating your claim. A public adjuster can take over the task of directly communicating with the insurance company and serve as a middleman to avoid time-consuming calls and contacts.
• You feel your insurer's adjuster underestimated your claim or that your payout isn't fair. Public adjusters can provide a second opinion and are likely to find that a policyholder's loss estimate is too low. They are experts in the details and language of insurance policies and can help you negotiate with contractors and insurers.
• You are filing a large claim for high-value, significant, or complex damage to your home, such as fire or flood damage.

Frequently asked questions