How Insurance Companies Limit Your Payout

insurance companies secrets

Have you been injured in an accident due to someone else’s negligence? Insurance companies may claim they are on your side, but that is not typically the case. An insurance adjuster’s primary goal is to pay you the smallest amount possible. They have several strategies they use to limit their pay out on claims; however, if you know how they operate, you can protect your rights, obtain a fair settlement and not let the insurance company take advantage of you.

Insurance Company Strategies to Know

Remember, an insurance adjuster is an employee of the insurance company. They are not on your side. Insurance adjusters are trained to be polite and appear to want to help you, yet they are skilled negotiators. Their mission is to get you to settle for as little as possible meaning they are working against you and may do things such as lie to you. The best advice is NOT to talk to them on the telephone so they cannot twist the conversation and use it against you.

insurance companies personal injury claim

Hire an experienced, reputable personal injury lawyer as soon as possible. An experienced attorney will know how much your case is worth and will help you get the settlement you deserve. Insurance companies prefer you to not hire an attorney; however, it is your choice and decision. They have a lawyer to look out for their best interests, you deserve the same protection.

Never give the insurance adjuster a recorded statement. The adjuster will try very hard to get a recorded statement from you in hopes that you may say something that will damage your claim. They phrase questions in a way that can trip you up. They may try to get a statement when you are still in shock or when you are at your most vulnerable. Recorded statements are not required. Best advice, never agree to let them (or anyone) record any conversation.

You have the right to decline conversations with the adjuster. If you do not feel comfortable talking with an adjuster, you do not have to. Your lawyer can submit a written statement (vs a verbal conversation) reducing your risk, once again, of having your own words used against you.

The insurance company may tell you otherwise, but you have the right to hire a personal injury lawyer who can handle communications with the insurance company.

Medical Records & Authorizations.  Your medical records are critical evidence in your case so the adjuster will try to get you to sign a medical authorization that will reveal all your past medical history. They do this, for instance, to find out if you have a previous health condition they can attribute your injuries to. Your lawyer can make sure the insurance company only sees those health records that are relevant to your accident.

Do not speak with an adjuster before getting medical care. Do not sign any medical authorization release forms sent to you by the other person’s insurant. Never authorize the release of your medical records to anyone without first consulting your lawyer.

Ignore the words ‘Final’ or ‘Best Offer’. This is often a ‘scare’ tactic. You don’t want to accept a settlement that is less than you deserve as you cannot reopen your case or negotiate for a higher settlement once you accept (and sign) a release of liability waiver. If you need to, your lawyer can take your case to trial to demand fair financial compensation.

Ensuring a ‘quick’ settlement is one way the insurance company can take advantage of you. They pressure you into signing a settlement offer, which is often a lowball offer. Do not jump at the first settlement offer.

Tips for the Plaintiff

Time is of the essence. Witnesses need to be contacted, physical evidence gathered, medical appointments completed. The longer you wait, the less likely the evidence will be there when you need it. Same with witnesses, the longer it takes to get their statement, the less likely they will recall details.

‘Bad Faith.’ One thing for you to know; insurance companies are not free from oversight. They can get into trouble if they act in ‘bad faith.’ There is a law in every state that requires insurance companies to act in good faith when dealing with their insureds. Basically, that means the insurance company must act in the best interest of their policy holders, not themselves. Unfortunately, many push the boundaries on this.

‘A picture is worth a thousand words.’ Taking photographs (or video) as soon after you have suffered your injuries can be a very useful tool in persuading insurance companies (and juries) that your injuries were serious. Video can be especially effective when taping the scene of the accident, helping to reconstruct the movement of vehicles before and after impact.

In addition, keep a written journal where you record exactly what happened. Keeping a detailed diary of your daily pain and limitations can be another useful tool for your lawyer.

A few more quick do’s and don’ts for you:

  • Don’t discuss fault
  • If you are feeling pain, seek medical treatment immediately; DO NOT wait
  • Locate witnesses and get their phone numbers
  • Do not give any statement to the other person’s insurance company
  • Go back to the accident scene and take photographs
  • Be sure to take photographs of your injuries
  • Start a diary/journal and write down what you remember about the accident
  • Report the accident to your own insurance company
  • Do not miss any doctor or therapy appointments
  • Obey all of your doctor’s orders and restrictions

Most importantly, hire an experienced, reputable personal injury attorney as soon as possible.

Insurance companies take advantage of you. They claim they are on your side, but that is not true; they are a for-profit business and work for themselves. An insurance adjuster’s primary goal is to pay you the smallest amount possible, and they use a number of strategies to achieve success. Do not let the insurance company take advantage of you.


attorney defective product lawyer lawyer product recall Arrow Endurance peripheral catheter system separate or leak complaintsIf you have been injured in a motor vehicle accident in which you suffered serious injuries due to another’s negligence, having an attorney who is your advocate can offer you peace of mind during your recovery.

Call Nash & Franciskato at (877) 284-6600. We have a successful track record of helping accident victims collect the compensation they deserve.One of our experienced staff will speak with you personally and will provide you with a free, no-obligation review of your case.


Past results afford no guarantee of future results and each case is different and is judged on its own merits. The choice of a lawyer is an important decision and should not be based solely upon advertisements.

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