Understanding the Insurance Company Playbook

Insurance claim practices are overseen by state regulators. The NAIC publishes consumer complaint data. Bad faith insurance practices can result in additional damages per Nolo legal analysis.

Insurance adjusters undergo extensive training in claim minimization. They're measured and bonused on keeping payouts low. Understanding their tactics is the first step to protecting yourself.

Tactic #1: The Quick Settlement Offer

Within days of an accident, you may receive a settlement offer. It seems generous when you're stressed and facing bills. But these early offers are calculated to be far below your claim's true value. Initial offers typically represent 10-30% of fair value.

Tactic #2: The Recorded Statement Request

"We just need your statement to process the claim." This friendly request is a trap. Adjusters ask questions designed to elicit harmful admissions. Any inconsistency between your statement and other evidence becomes ammunition to deny your claim.

Tactic #3: Medical Records Fishing

Insurers request broad medical authorization to "verify injuries." What they're actually doing is searching your entire medical history for pre-existing conditions to blame.

Tactic #4: Delay, Delay, Delay

Insurance companies know you have bills to pay. They deliberately delay processing, requesting document after document, knowing financial pressure may force you to accept a lowball offer.

What You Should Do Instead

1. Report the accident to your insurer promptly with basic facts only
2. Document everything: photos, medical records, expenses, missed work
3. Never admit fault or speculate about what happened
4. Decline recorded statements and broad medical authorizations
5. Don't discuss your claim on social media
6. Consult an attorney before accepting any settlement