Auto Insurance Companies: Dirty, Lying, Cheating Scammers

Auto insurance companies are often accused of being dishonest and unethical in their dealings with customers. While their adjusters may act like your best buddy, their primary goal is to settle claims for as little money as possible. They may use manipulative tactics to get claimants to say things that could reduce their payout, and they often make lowball offers or even deny claims altogether. On the other hand, customers also lie to insurance companies to get better rates or higher payouts. This could be something as simple as lying about their address or failing to report accidents, or something more serious like faking accidents or injuries.

Insurance adjusters pretend to be friendly to claimants

Insurance adjusters are trained to be friendly and pretend to be on your side, but they are not your friend. They are well-trained negotiators who work for insurance companies and are incentivized to settle your claim as quickly and cheaply as possible. They will use a wide array of misleading tactics to trick you into taking a lower settlement amount than you deserve.

Insurance adjusters will try to get you to compromise your case by saying or doing something you shouldn't, allowing them to deny or reduce the value of your claim. They may try to get you to admit fault or say something that can be taken as an admission of guilt, such as "I'm sorry". They will ask you a series of loaded questions to get you to admit fault or partial fault for the accident. They will also try to get you to downplay your injuries, for example, by asking how you are doing and then using a response like "I'm fine" against you to demonstrate that you aren't suffering or in pain.

Insurance adjusters will make small talk with you to make you feel relaxed. They will try to get you to open up and tell them more than you have to, and to let your guard down. They will pretend to be in a hurry to make you nervous or flustered, hoping that you will settle for a lowball offer. They will also try to get you to settle quickly before your medical treatment is finished, knowing that some injuries take months or years to heal and that if you accept a settlement before you're fully healed, you may miss out on compensation.

It is important to remember that insurance adjusters are not objective parties just looking into the details to get a fair accounting of what the insurance company owes. They are not working for you, and they are not your agent. They have only the best interests of their client (the insurance company) in mind and will perform their duties with a certain degree of bias.

Insurance companies offer quick settlements to cheat claimants

Insurance companies are for-profit corporations that aim to maximise their profits by investing premiums and paying out as little as possible on claims. They often offer quick settlements to claimants, knowing that victims are anxious to receive compensation due to mounting medical expenses, car damage, rental bills, and wage loss. While it may seem like a good idea to accept a quick settlement, it is rarely beneficial for the claimant. Here are some reasons why:

Low Settlement Offers

Initial settlement offers from insurance companies are typically much lower than the full value of the claimant's damages. Insurance adjusters are trained to save money for their company and will look for any reason to reduce or reject claims. They may use "bad faith tactics" to trick claimants into saying something that may devalue their claim. For example, asking seemingly harmless questions like, "Are you feeling better?" can later be used against the claimant to prove that their injury is not as severe as initially claimed.

Protecting Their Bottom Line

Insurance companies offer low settlements to protect their profits. If they can pay a smaller amount than what the claimant deserves, they will. By settling quickly, insurance companies can also avoid dealing with attorneys and the litigation process, which can be costly and uncertain for them.

Computer-Generated Offers

Major insurance companies receive numerous claims daily, and they sometimes rely on computer-based estimates to compare claims and generate settlement offers. However, these estimates cannot consider unique and complex factors, resulting in lowball offers that are calculated to be just tempting enough for claimants to accept.

Release Agreement

Accepting a settlement offer typically includes a "release agreement," meaning the claimant gives up the right to pursue additional compensation or file a lawsuit related to the same accident or injury. This agreement is usually airtight and strictly enforced by courts. As a result, if a claimant accepts a lowball offer and later discovers their injuries are more severe or their recovery is not going as expected, they cannot take further action.

Hoping for Acceptance

Insurance companies offer low settlements because they know many people will accept them, either due to financial pressure or the lure of a quick payment. They hope that claimants will take the bait and accept the offer without negotiating further.

In conclusion, insurance companies offer quick settlements to claimants as a tactic to minimise their own costs and maximise profits. It is important for claimants to understand their rights and seek legal representation to ensure they receive fair compensation for their damages.

Insurance companies use lowballing or denying claims

Insurance companies are in the business of making money, and one of the main ways they do this is by collecting premiums from policyholders. To maximise profits, insurance companies will try to save money by paying out as little as possible in insurance settlements. This is known as "lowballing".

A Quick Settlement Offer

A swift settlement offer is likely to be a lowball figure. Insurance claims are detailed documents that require time to prepare properly. They should include medical documentation, police or accident reports, and proof of damages. If an insurance adjuster rushes through this process, they are probably trying to pay you as little as possible. A quick settlement offer may also be an attempt by the insurance company to avoid a lengthy court battle.

Pressure to Accept

Insurance companies may try to pressure you into accepting their lowball offer by implying that it is the highest amount they will pay and that you must accept it quickly. They may tell you that you have "no time" to consult an attorney. However, under the law, you have a set period from the date of the injury to file a claim. This is plenty of time to consult a lawyer, who can advise you on whether the settlement offer is fair.

Ignoring or Dismissing Evidence

Insurance companies may try to avoid paying you the full amount of compensation by ignoring or dismissing evidence of their liability. They may attempt to shift the blame to you, in whole or in part, to reduce their payout. It is important to include evidence with your claim, such as photos, videos, witness statements, and medical documentation, even if the insurance company initially ignores it. This evidence will be crucial if your case goes to court.

Questioning Your Injuries

Insurance adjusters may question the validity or cause of your injuries, implying that they are due to a pre-existing condition. To counter this, you can take photos of your injuries, obtain medical test results (such as X-rays), and ask your doctor for a statement confirming that your injuries were caused by the accident.

Lack of Transparency

You have the right to ask how the insurance adjuster calculated their settlement offer, especially for emotional damages. If an insurance adjuster cannot give you a straight answer or explain their calculations, they are likely lowballing you.

If you believe an insurance company is lowballing you, it is essential to seek legal advice. A personal injury attorney can fight for a fair settlement on your behalf, challenge the lowball offer, and guide you through the negotiation process. They can also help you gather the necessary evidence to support your claim and protect your legal rights.

Insurance adjusters use claimants' words against them

When you file an insurance claim, you will likely be dealing with an insurance adjuster, who works for the insurance company paying the claim. Their role is to investigate insurance claims to determine the extent of the company's liability and how much the insurance company should pay out.

Adjusters are hired by the insurance company to look into the claim and determine whether they need to pay for damages. They will assess the damages, look into the details of the accident, speak with you and witnesses to the accident, and peruse accident records to determine how much the insurance company should pay.

It is important to remember that the adjuster is on the side of the insurance company and will perform their duties with a certain degree of bias. They may employ bad faith tricks to lower the potential payout. They can do this by looking for any way to delegitimize your claim, such as proving you share liability or delaying the process to frustrate you enough that you make a mistake.

One way they may try to delegitimize your claim is by using your own words against you. They may ask you a series of questions to get you to admit fault, even if you are not at fault. For example:

> "I understand that the other car ran the red light and hit you, but what more could you have done to avoid the accident?"

> "I understand that it rained on the day of the accident. How much of an effect do you think the slick roads had on your ability to avoid the accident?"

> "You are new to the area. Did your lack of familiarity with the area change how you drove that day?"

These types of questions may seem innocent, but you may inadvertently admit that you contributed to the accident. Such admissions can reduce the amount of money you can recover for your losses and injuries.

Another way adjusters may try to use your words against you is by obtaining your medical records. They will need a signed authorization from you to do this, so be sure to read it very carefully. They may request records unrelated to your accident, going back years before the injury occurred, in an attempt to find another cause for your injury.

Adjusters might also ask you for a recorded statement, which can be taken out of context and used against you. For example, a simple "I'm fine" in response to "How are you feeling today?" can make your injuries appear less serious.

To avoid these pitfalls, it is important to be cautious in your communications with insurance adjusters and remember that they are not on your side. Consider consulting with a lawyer before speaking with an adjuster to ensure your rights are protected.

Insurance companies use dirty tricks in accident claims

Blaming the victim

One of the simplest and most effective tricks is to blame the victim for the accident. The insurance company will try to get the victim to admit fault by asking leading questions and letting them talk freely, looking for any shred of evidence to use against them. They will also conduct their own "investigation" and hire lawyers and experts to support their case.

Pre-existing injuries

Insurance companies may claim that the victim's injuries were pre-existing and not caused by the accident. While victims may not recover damages for pre-existing injuries, they can for the worsening of such injuries. It is important to be transparent with doctors and lawyers about any pre-existing conditions.

Timing of injuries

Insurance companies may also claim that the victim's injuries occurred after the accident. They will scrutinize the victim's social media accounts for any evidence to support this. To avoid this, it is recommended to see a doctor immediately after the accident, report all injuries, and continue treatment.

Exaggerated injuries

Insurance companies will try to prove that the victim's injuries are not as severe as claimed. They will hire their own doctors, lawyers, and experts to downplay the injuries and reduce the payout. Victims should avoid any activities that could be used against them, such as drinking alcohol, and ensure they do not miss any doctor's appointments.

Withholding evidence

Insurance companies will often conduct their own investigations and may withhold evidence that supports the victim's claim, even from attorneys. They will use various tactics to hide evidence, such as claiming privilege.

Delaying claims

Insurance companies know that accident victims are often financially vulnerable, and they will delay claims as long as possible to get the victim to accept a lower payout. They may demand more paperwork, request additional statements, and keep the victim on the phone for hours.

Lowball settlement offers

Insurance companies know that settling claims quickly is usually cheaper for them. They will often offer a low settlement amount early on, hoping that the victim will accept it to get the process over with. However, this offer is usually far below what the victim is entitled to.

Using your words against you

Insurance adjusters will listen carefully to what the victim says and use any "admissions" of fault or inconsistencies with other information they have collected against the victim. It is important to be cautious when speaking with insurance adjusters and provide only the information you want to share.

Frequently asked questions