After an accident, many people assume that an insurance company will fairly evaluate their claim and offer compensation that reflects what they have been through.
In reality, insurance companies are businesses focused on limiting costs and protecting their bottom line. While insurance adjusters may sound helpful and sympathetic, their role is to resolve claims for as little money as possible.
Understanding how insurance companies reduce personal injury settlements can help accident victims avoid common pitfalls. Our Florida personal injury lawyers explain the most frequent tactics insurers use to minimize payouts and outline practical steps injured individuals can take to protect themselves.
Common Tactics Insurance Companies Use To Reduce Payouts
Insurance companies rely on a variety of strategies to reduce what they pay on personal injury claims. These tactics often begin shortly after the accident and continue throughout the claims process.
Requesting Recorded Statements Early
One of the first things an insurance adjuster may request is a recorded statement. These requests often come within days of the accident, when injuries may not be fully diagnosed and details are still unclear.
Adjusters may ask seemingly harmless questions about how the accident happened or how the injured person is feeling. However, statements made early on can later be used to challenge the severity of injuries or suggest inconsistencies. Even a casual remark like “I’m feeling okay” can be cited later to argue that injuries were minor or short-lived.
Downplaying Or Disputing The Severity Of Injuries
Insurance companies frequently attempt to minimize the seriousness of injuries to justify a lower settlement. This may involve questioning medical diagnoses or the need for ongoing treatment.
Insurers may argue that injuries were pre-existing, unrelated to the accident, or exaggerated. They may also point to gaps in treatment, such as missed appointments or delays in seeing a doctor, as evidence that the injuries were not serious. In some cases, insurers rely on medical reviews conducted by doctors who have never examined the injured person.
Delaying The Claims Process
Delays are a powerful tool insurers use to wear down accident victims. By slowing the process, insurance companies increase financial pressure on injured individuals who may be struggling with medical bills or lost income.
Delays can take many forms, including repeated requests for documents, slow responses to emails or phone calls, and frequent reassignment of adjusters.
In some cases, insurers may intentionally drag out negotiations as the statute of limitations approaches. If the deadline to file a lawsuit passes, the injured person may lose the right to pursue compensation altogether.
Shifting Or Denying Liability
Another common tactic is disputing who was responsible for the accident and exploiting comparative negligence laws. Even when the fault seems clear, insurers may argue that the injured person shares some blame.
By shifting partial responsibility to the injured party, insurers can reduce the amount they are required to pay. They may rely on selective interpretations of evidence, such as statements made at the scene or incomplete accident reports, to support their position.
Offering Quick, Low Settlement Amounts
Early settlement offers are often designed to close claims before the full extent of injuries is known. These offers may arrive quickly and be presented as a fast solution to financial stress.
While a quick payout may seem appealing, early offers are typically far lower than the true value of the claim. Once a settlement is accepted and a release is signed, the injured person usually gives up the right to seek additional compensation, even if new medical issues arise later.
Using Policy Language To Limit Coverage
Insurance policies are complex documents filled with exclusions, limitations, and technical language. Insurers may rely on strict interpretations of policy terms to justify paying less than expected.
This tactic can include arguing that certain damages are not covered, that policy limits cap compensation, or that exclusions apply to the circumstances of the accident. For many accident victims, understanding these provisions without guidance can be difficult.
How Insurance Companies Calculate Settlement Value
Insurance companies do not calculate settlement values based solely on fairness or hardship. Instead, they rely on internal methods designed to control payouts.
Typically, damages are separated into economic and non-economic categories. Economic damages include measurable costs like medical bills and lost wages.
Non-economic damages, such as pain and suffering, are often assigned values using formulas or software programs. These systems may not fully account for how injuries affect daily life, long-term health, or emotional well-being, resulting in offers that fall short of actual losses.
How Accident Victims Can Protect Themselves
While insurance companies may use aggressive tactics, accident victims are not powerless. Taking proactive steps can help protect both health and legal rights.
Seek Medical Attention Immediately And Follow Treatment Plans
Prompt medical care is one of the most important steps after an accident. Early medical treatment helps ensure injuries are properly diagnosed and documented.
Following prescribed treatment plans also shows that injuries are being taken seriously. Skipping appointments or stopping treatment early may give insurers an opportunity to argue that injuries were minor or resolved.
Be Careful When Communicating With Insurance Adjusters
Insurance adjusters are trained to gather information that benefits their employer. Accident victims should be cautious about what they say and how they say it.
Avoid speculating about fault or minimizing injuries. Keeping communication factual and limited can help prevent statements from being taken out of context or used later to reduce a claim.
Document Everything Related To The Accident
Strong documentation can counter many arguments. Accident victims should keep copies of all medical records, bills, prescriptions, and receipts.
Photographs of injuries, vehicle damage, and the accident scene can be valuable, as can witness contact information. Keeping a journal that tracks pain levels, limitations, and how injuries affect daily life may also help illustrate non-economic damages.
Do Not Accept The First Settlement Offer Without Review
Initial settlement offers are rarely designed to fully compensate injured individuals. Before accepting any offer, it is important to consider future medical needs, ongoing treatment, and potential long-term effects.
Once a settlement is finalized, there is usually no opportunity to request additional compensation. Taking time to understand the implications of an offer can prevent costly mistakes.
Understand Your Claim Before Negotiating
Knowing what a claim involves goes beyond adding up current medical bills. Lost income, reduced earning capacity, and the impact of injuries on quality of life all factor into a fair settlement.
Understanding these elements can help accident victims recognize when an offer undervalues their claim and when further negotiation or action may be necessary.
When Legal Guidance Can Make A Difference
In some situations, insurance company tactics can be difficult to counter alone. Legal representation can help level the playing field by handling communication with insurers, gathering evidence, and identifying unfair settlement practices.
A personal injury attorney can be especially beneficial when liability is disputed, injuries are serious, or delays threaten important deadlines.
Contact Anidjar & Levine For Help Understanding Your Options
If you were injured in an accident and are concerned about how an insurance company is handling your claim, Anidjar & Levine can help you understand your legal options.
Our team offers free consultations and can explain how the claims process works, what to expect, and what steps may be available to protect your interests.
You pay nothing unless we recover compensation for you. Call today.
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