Tricks insurance uses to minimize compensation

On Behalf of | Mar 8, 2021 | Personal injury

Catastrophic injuries are incredibly costly in terms of both health and finances. When it comes time for the liable party’s insurance to pay for the costs of an injury, getting that compensation is harder than one might expect.

Insurance companies are a business like any other, and their primary goal is not to take care of people, it is to make money. Their premiums alone pulled in $1.22 trillion in 2018. This business-oriented mindset often results in insurers taking extra measures to minimize any payments they need to pay.

Insurance strategies

Insurers will say and do a lot to save money. If you are pursuing compensation for injuries, knowing what tricks insurance companies use can save you a lot of time and money. Common examples of these tricks include:

  • Claiming you do not need a lawyer: insurance companies will try and convince victims that they do not need an attorney. An attorney may be the only person you can count on to look after your best interests, which is why insurers want to keep lawyers out of things. You should never deal with insurance companies alone.
  • Forcing you to sign paperwork: insurers may pressure victims into signing paperwork in a hurry. This pressuring is a standard method of getting victims to sign away their rights to compensation or to force them into settling for a small payment. Do not sign anything without your lawyer reviewing the paperwork first.
  • Using vague phrasing: insurers will use phrases like “full coverage” to cause a victim to assume they are getting a better outcome than what is coming. An attorney can review the situation to determine if what insurers are saying is accurate.

If insurance companies are saying or doing something that makes you feel uncertain, follow that instinct, and speak to an attorney. When no one is present to regulate the insurer’s actions, things can turn ugly.

Do not let insurers get away with it

Insurance companies prey upon victims who take them at their word and accept the first offer they receive. Anyone has the right to negotiate for fair compensation, and having an attorney at your side can help you earn it.