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5 tactics car insurance companies use to reduce payouts

On Behalf of | Jul 13, 2022 | Motor Vehicle Accidents |

If you get into a collision, you expect that the car insurance company will pay out fairly. You pay for the policy, so you should get what you paid for, right?

Well, it isn’t always that straightforward. It’s fairly well known that some auto insurance providers will do all they can to reduce what they have to pay out. For them, auto insurance is a business, and paying out means losses.

Here are five tactics you should be aware of that could negatively influence the value of your insurance settlement.

  1. They want you to admit fault

One of the first things the insurance company will do is try to talk to you about the case. They may ask you questions about the likelihood that you made an error leading to the crash. If that happens, they could lower the amount of compensation they’re willing to offer.

  1. They keep lowballing you

A low settlement offer should be expected any time you make a claim. Don’t accept it. Many insurance companies may a lowballed offer first and hope that you’ll take it. Once you do, they’re off the hook for paying more.

  1. They drag out the length of the claim

Once you’ve received a settlement offer, there’s a chance that it could take a while to hear from the company again. Maybe they’ll take a long time to respond or review information you send them. Their hope? You’ll accept the original offer and move on because of the delays.

  1. They outright dispute the severity of your injuries

If the insurance company disputes the severity of your injuries or the medical documents you’ve submitted, that’s a big red flag that you need further legal support. They may be trying to get you to accept a low settlement when you really deserve more.

  1. They tell you that you don’t need an attorney

Any victim can benefit from speaking with an attorney to know their rights. If the company is saying you don’t need one, then that should be your sign to lawyer up.

These are five common tactics used by insurance companies. Know your rights, and don’t fall for their manipulative behaviors.