Insurance is a modern necessity, and it can often be a literal lifesaver. When any sort of disaster strikes — whether it’s your property, business, or health — getting a payment on your claim can mean the difference between getting through the emergency in one piece and being buried under bills for years to come. Studies have found that some insurance companies reject nearly 50% of all claims. In fact, some employ legal but underhanded tricks to avoid paying out on claims. Here are some of the common tricks insurance companies will try to use against you.
MOVING AS SLOWLY AS POSSIBLE: The simplest trick an insurance company can play is to drag their feet on your claim. There’s a reason the phrase “deny and delay” has become linked to the insurance industry as a whole. This tactic works because your insurer knows you’re desperate for a settlement on your claim, and the longer they make you wait, the more likely you’ll accept whatever they offer you. The best way to counter this tactic is with meticulous record-keeping. Send all written communications via certified mail and turn on read receipts for emails and other electronic communications.
LOVE BOMBING: Insurers are often extremely nice to you when you initially start dealing with them. They express sympathy, use the words “I’m sorry” in the context of your injuries or loss, and generally sound warm and friendly. That’s nice, and may even be genuine, but it’s also a tactic they use to delay or eventually find reasons to deny your claim. Love bombing can get you to say things you shouldn’t say.
TWISTING YOUR WORDS: Any expression of apology or regret could be interpreted as an admittance of fault, and establishing a friendly, sympathetic rapport with you could be a tactic to get you to say more than you should by speculating on causes or your responsibility in a claim. Insurers will also sometimes demand that you submit a recorded statement, often very quickly after the incident covered by the claim, but if you’re inaccurate about anything in your statement, it could be used as a basis for denial. Four words: lawyer up, never record.
LOWBALLING: If your insurer doesn’t think it can totally deny your claim, it may offer you a lowball settlement. You shouldn’t accept an insurance company’s calculations as gospel. In fact, the most important piece of information you can have about the claims process is that you are allowed to hire your own insurance adjuster. A public insurance adjuster works for you, not the insurance company, and will often arrive at a much higher figure for your claim.
