When you’re injured in an accident, insurance companies often present themselves as being on your side. In reality, their goal is to save money by paying you less than you deserve. Understanding the tactics they use can make a big difference in protecting your rights and maximizing your claim.
1. Insurance companies are not on your side
It’s tempting to treat the insurance adjuster as a friendly go-between, someone you’re negotiating with in good faith. But you must remember: insurance companies are businesses whose primary commitment is to shareholders and minimizing liabilities. Adjusters are employees trained (directly or indirectly) in minimizing payouts, disputing claims, and pushing back on anything that raises their costs.
While their tone may seem helpful or sympathetic, that demeanor can mask their true objective: to reduce or deny your claim. Their policies, internal guidelines, or “cost-saving” practices frequently discourage generous settlement amounts. For instance, an adjuster might casually imply that a particular medical procedure is optional or that a symptom is “minor,” even when your medical records prove otherwise.
Action step: Always assume the insurance company is acting in its own best interest. Document all communications (dates, names, what was said), and consider retaining an attorney early, especially if injuries are serious or liability is disputed.
2. They use delay tactics
One of the classic strategies is to delay. The insurer may drag out the investigation or request repetitive documentation, hoping you will get frustrated or face financial pressure. The longer they can stall, the more likely you are to settle prematurely, either because medical bills mount or because you simply want closure.
Delay tactics can take many forms: repeated requests for documents, asking for redundant medical examinations, or sending vague notices requesting “further information” without specifying what’s lacking. These tactics are not always overt; sometimes, they subtly slow down by making you guess what they want next. Meanwhile, deadlines for filing claims or statutes of limitations run in the background.
The purpose of delays is strategic: once you’re desperate or distracted, you might accept a lower settlement just to resolve matters. It’s a “drip-drip” pressure that wears down your resolve.
Action step: Be prompt in responding to reasonable requests (with documentation) but push back on unnecessary, repetitive demands. Keep a strict timeline, and if the insurer drags its feet beyond a reasonable period, initiate formal reminders (in writing) and consider escalation through your attorney or regulator.
3. They may downplay your injuries
Another common tactic is for insurers to question the severity or legitimacy of your injuries. They may argue that the injuries are “pre-existing,” trivial, or already healed. They might demand you see their chosen doctors (sometimes repeatedly) to poke at inconsistencies or raise doubt about your condition. They often look for weak points, such as gaps in treatment, minor discrepancies in your statements, or slow initial reporting, to minimize compensation.
By diminishing the severity, insurers can claim your recovery is mostly your responsibility or that your damages are overstated. The goal is to frame your injuries as minor or incidental, rather than as serious, ongoing, and costly.
Action step: From day one, seek consistent, documented medical treatment. Follow medical advice and don’t skip appointments. Request copies of all records, including imaging, prescriptions, and reports. If the insurer questions your injury, use your medical record timeline to show your progression.
Learn More: How Much Is My Personal Injury Case Worth?
4. They undervalue claims
Once liability is accepted (or partially accepted), insurers often undervalue the claim. They use internal software systems, “valuation matrices,” or conservative guidelines to estimate a “fair” amount. These algorithms or guidelines often exclude:
- Future medical care costs
- Long-term or permanent impairment
- Pain and suffering and emotional impact
- Lost earning capacity or career interruptions
Because of these systemic valuation constraints, what you’re offered is rarely reflective of reality. The insurer might attempt to compress future damages into a few months or a single figure instead of acknowledging long-term harm.
Furthermore, they may quietly exploit your lack of full information or urgency. They’ll suggest “this is our best and final offer” or “if you don’t accept now, the offer might disappear.” Many people, unaware of their true rights, accept before getting full valuations from experts (economists, life care planners, vocational specialists).
Action step: Don’t let the insurer’s early number define your expectations. Hire your own experts (medical, vocational, economic) to estimate full damages and present a comprehensive demand. Counter their undervaluation with documented evidence and expert reports.
Learn More: How Insurance Adjusters Undervalue Injury Claims
5. Recorded statements can be used against you
Insurance representatives may ask you to provide a recorded statement. What may seem like an innocent conversation can later be twisted to limit your compensation. Even minor inconsistencies can be used against you, which is why it’s best to consult with an attorney before making any statements.
Action step: Before agreeing to any recorded statement, speak with an attorney. If you must speak, do so in writing rather than verbally, and ask to see a copy of whatever you sign. If pressed, politely decline or delay until counsel is present.
6. Accepting the first offer is rarely in your best interest
Insurance companies count on most people accepting the first offer. They know many claimants are unaware of their full rights or simply want closure. The initial offer is almost always well below fair value, designed to resolve the case quickly and cheaply. They hope you’ll say, “this is good enough” before you realize the real costs of medical bills, lost wages, and long-term effects.
By accepting too early, you may waive rights to future compensation. You could later discover you need more treatment, face unexpected complications, or find that your settlement doesn’t cover all your losses. Once you “sign off,” it’s often very difficult (and sometimes impossible) to reopen the matter.
Action step: Treat the first offer as a baseline, not a solution. Do your own valuation (or have your attorney do it). Compare it against expert estimates, medical bills, and future projections. Respond with a counteroffer backed by documentation. Don’t rush just to close the case.
7. They may manipulate “comparative fault” or percentage of blame
In many jurisdictions, your compensation can be reduced based on your degree of fault (comparative fault). Insurers may twist facts, exaggerate your responsibility, or resist acknowledging the other party’s liability to shift blame onto you. By assigning you even a small percentage of fault, they can cut your payout proportionally. This tactic is subtle because most people don’t closely argue percentages of fault, they assume liability is straightforward.
Insurers may argue that your speed, reaction, or minor negligence contributed, even when their own insured was predominantly responsible. They will emphasize ambiguous or borderline evidence to shift blame. If they succeed, your final award may be drastically lower, even if their insured bore major responsibility.
Action step: Collect as much independent evidence as possible: photos, surveillance footage, witness statements, expert reconstruction. Use those to contest any attempt to attribute blame to you. Challenge any assertions of comparative fault with detailed counterarguments and evidence.
8. They may deny coverage using technicalities
Sometimes, insurers try to avoid paying entirely by relying on fine print or coverage exclusions you didn’t even know existed. They may claim your claim is invalid because you missed a deadline, failed to notify promptly, or neglected a minor policy requirement (e.g., reporting theft within 24 hours). Such procedural loopholes can be used as a pretext to deny the claim outright, rather than negotiate.
Insurers also may argue that certain types of losses are excluded under your policy (e.g., “acts of God,” “wear and tear,” or “pre-existing conditions”). Even if you reasonably believed a particular loss was covered, they’ll point to obscure clauses or definitions to reject the claim. Many policyholders aren’t familiar with these clauses until it’s too late.
Because policy language tends to be dense and legalistic, companies bet that most people won’t scrutinize or challenge these denials. Once they deny, they force you to litigate or abandon your claim altogether.
Action step: Read your policy closely or have your attorney review it. Know the deadlines, exclusions, and obligations imposed on you. If the insurer tries a technical denial, respond in writing disputing the interpretation. Be ready to escalate to appeals, regulatory complaint, or litigation.
Final thoughts: Uncovering the truth insurance companies hide
Insurance companies succeed when claimants are uninformed, rushed, or intimidated. Their strategies work best when people don’t question their motives or tactics. But armed with knowledge, documentation, and expert support, you can push back.
Here’s a quick summary of the strategies and how to counter them:
| Tactic | How They Use It | What You Do |
|---|---|---|
| Present as ally | Friendly tone, reassuring language | Assume self-interest, document everything |
| Delay tactics | Repeated requests, stalling | Push back, set deadlines, escalate |
| Downplaying injuries | Question severity, ask for repeated exams | Stay consistent with treatment, medical record trail |
| Undervaluing claims | Use software and limited guidelines | Hire your own experts for valuation |
| Recorded statements | Trick you into contradictions | Decline until attorney involvement |
| First-offer trap | Lowball early offer | Treat as baseline, counter with proof |
| Manipulating fault | Shift blame percentage to you | Collect evidence, dispute fault allocation |
| Technical denial | Use policy loopholes or missed steps | Know your policy, challenge denials in writing |
Insurance companies rely on you not knowing the truth about their strategies. With the right legal support, you can fight back against these tactics and secure the compensation you need.
Knapp Moss has extensive experience dealing with insurance companies and understands how to counter their methods. Our team is here to level the playing field, guide you through the claims process, and make sure you get the justice you deserve.
Contact Knapp Moss today to discuss your case and protect your future.
Frequently Asked Questions
They want to save money and close claims quickly, often before victims realize the true value of their case.
It’s best to avoid it until you speak with a lawyer, as your words can be used against you.
They use software, internal guidelines, and negotiation tactics to minimize payouts.
