Common Tricks Used To Devalue Your Claim
by Toni Hipolito
Claims Are Already Stressful
Dealing with an insurance claim can be stressful, especially when you feel like your insurance company is giving you the runaround. It’s frustrating when they dismiss your claim or offer a settlement far below what you deserve. Unfortunately, some insurance companies engage in “bad faith” practices—unethical tactics designed to avoid paying claims. In this post, we’ll walk you through 8 red flags that might indicate your insurance provider is acting in bad faith.
1. Changing Your Policy Without Telling You
Imagine this: after filing your claim, you discover that the terms of your insurance policy have been altered, reducing your coverage or even leaving you with nothing. Unfortunately, this can happen. Some insurance companies make changes to your policy without notifying you, often hiding the adjustments in complicated legal language. To protect yourself, always keep a copy of your original policy and any updates you receive. Compare them over time to make sure nothing’s been changed without your knowledge.
2. Ignoring Your Claim or Evidence
One of the biggest red flags in insurance bad faith is when your insurance company refuses to review your claim or the documents you’ve submitted, like medical bills or damage estimates. While this doesn’t automatically mean they’re acting in bad faith, it’s a sign that something’s not right. If your insurance provider isn’t taking the time to consider your evidence, it might be trying to minimize or deny your claim altogether.
3. Rushing the Process
After an accident, it’s easy to feel overwhelmed. You might not fully understand the extent of your injuries or the long-term effects they could have. Insurance companies know this, and sometimes they’ll try to rush the claims process to get a statement from you before you’ve had time to fully process everything. They might pressure you into providing a recorded statement, hoping you’ll say something that could hurt your case later. This tactic can work against you, especially if you’re still unsure about the severity of your injuries or financial losses.
4. Trying to Blame You
Another trick insurance companies use is trying to shift the blame to you. They may conduct a rushed or incomplete investigation and then use that to argue that you’re at fault for the accident. To avoid falling into this trap, make sure an independent party, such as law enforcement or a lawyer, investigates the incident to ensure the facts are clear.
5. Making a Quick Settlement Offer
If your insurance company offers you a quick settlement right after an accident, it’s worth taking a step back and considering whether it’s in your best interest. Not all injuries show immediate symptoms, especially injuries like traumatic brain damage. Insurers know this, and they may offer a quick settlement before you fully understand the extent of your injuries. Be cautious of hasty offers—they may not account for the long-term costs of your recovery or future medical bills.
6. Discouraging You from Hiring a Lawyer
If your insurance company tells you that hiring a lawyer will only complicate things and cost you more money, be wary. This might be an attempt to keep you in the dark about your rights and options. The truth is, many lawyers work on a contingency basis, meaning you don’t have to pay upfront legal fees. Having a lawyer on your side ensures that you fully understand your policy, that your claim is properly documented, and that your best interests are protected.
7. Challenging Your Medical Evidence
Insurance companies will sometimes argue that your injuries aren’t as severe as you claim, or even suggest that you’ve recovered already. They might try to convince you that your medical condition was pre-existing or that the accident didn’t cause the level of harm you say it did. If this happens, don’t let them pressure you into stopping your treatment or giving up your claim. Seeking legal help can give you the support you need to push back against these challenges and protect your rights.
8. Denying Your Claim Without Explanation
If your claim is denied, the insurance company is legally required to explain why. Were they to simply deny your claim without giving you a reason—or worse, provide a reason that doesn’t make sense—that’s a major red flag. If this happens, it might be time to seek legal advice and understand your options for appealing the decision.
What to Do If Your Insurance Claim Is Denied
If your insurance claim is denied, you don’t have to accept it right away. Start by reviewing the denial letter and your policy to understand why the claim was rejected. You might be able to resolve the issue by providing additional evidence. If that doesn’t work, you can request an internal review from the insurer.
Don’t hesitate to get help from a lawyer if you believe the denial was unjust. A skilled attorney can help guide you through the appeals process, communicate with the insurance company on your behalf, and ensure your rights are fully protected.
Insurance companies have an obligation to act in good faith, but not all of them do. If you feel that your claim has been mishandled, seeking legal counsel can help level the playing field and give you the best chance of getting the compensation you deserve.