Insurance Company Dirty Tricks
Last Updated: 11/12/2025
This is the first post of my new Astro blog.
Remember: Insurance companies’ primary goal is to minimize payouts and protect their bottom line—not to fairly compensate you. Having experienced legal representation levels the playing field and ensures your rights are protected.
Common Insurance Company Dirty Tricks
Watch out for these tactics insurers use to minimize or deny valid claims:
- Delay tactics: Drag out the process to pressure you into quick, low settlements
- Lowball offers: Initial settlements far below true claim value
- Claim denials: Unfair denials hoping you won’t appeal
- Misleading information: Misrepresent policy details or coverage limits
- Recorded statements: Use your words against you later
- Quick settlement pressure: Offer fast money before you know full injury extent
- Automated software: Programs like Colossus systematically undervalue claims
Understanding Insurance Company Tactics
The Business of Minimizing Claims
Insurance companies often employ questionable tactics to minimize or deny valid claims. Understanding these strategies can help you protect your rights and pursue fair compensation.
Many insurers even use automated software to devalue claims. This makes it crucial to have experienced representation.
Below are examples of how insurers might operate behind the scenes. Knowing these tactics helps you recognize and counter them.
The more you understand about insurance company strategies, the better equipped you are to protect yourself. These aren’t conspiracy theories—they’re documented industry practices designed to maximize profits by minimizing payouts.
Delay Tactics
How Insurers Use Time Against You
Insurance carriers may drag out the process to pressure injured workers into settling for less. They hope the financial strain of unpaid bills and lost wages will force a quick agreement.
This tactic exploits your urgent need for money. The longer they wait, the more desperate you become.
Common Delay Techniques
This often involves repeated requests for additional documents. Each request seems reasonable in isolation.
Extended waiting periods before returning phone calls are standard. Slow-paced negotiations drag on for weeks or months.
While each request may seem innocent or routine, the cumulative effect can be overwhelming. You’re drowning in paperwork while your bills pile up.
How to Counter Delay Tactics
The best way to counter delay tactics is to document every interaction. Keep a log of every phone call, email, and letter.
Respond promptly to all requests. Don’t give them an excuse to blame delays on you.
Be prepared to escalate if the insurer continues stalling. Ask to speak with supervisors. File complaints with your state insurance commissioner.
In severe cases, discussing your situation with an experienced attorney can help. They ensure you don’t lose valuable time that could negatively impact your claim.
Every month of delay means another month without income, another month of mounting bills, and more time for evidence to disappear. Insurance companies know this. They use time as a weapon. Don’t let them.
Lowball Offers
The Initial Settlement Trap
Insurers sometimes present an initial settlement that is far below the true value of the claim. They expect claimants to accept rather than negotiate.
This tactic preys on fear and uncertainty. If your finances are stretched thin by medical expenses and lost income, you may feel pressured to take the quick payout.
However, this often means you end up undercompensated. You don’t receive fair payment for medical costs, pain and suffering, and other damages.
Why Lowball Offers Work
Insurance adjusters count on several factors:
- Financial desperation - You need money now for bills and living expenses
- Lack of knowledge - Most people don’t know what their claim is worth
- Fear of litigation - You’re afraid of the time and expense of a lawsuit
- Relief at any offer - After a denial or long wait, any money seems good
These psychological factors make lowball offers effective. Knowledge is your best defense.
How to Combat Lowball Offers
To combat a lowball offer, thoroughly research the value of your claim. Review medical bills, wage statements, and potential future treatment needs.
Understanding how insurance companies calculate claim values can help you recognize when an offer is unfairly low. Itemizing your losses helps you stand firm in your negotiations.
Additionally, consulting a legal or medical professional can strengthen your position. They provide expert opinions on the adequacy of an offer.
Insurance adjusters rarely make their best offer first. They lowball to see if you’ll accept. Negotiation is expected. Don’t feel obligated to take the first number—it’s often 30-50% below fair value.
Claim Denials
The Hope You’ll Give Up
Some claims are unfairly denied with the hope that policyholders will not appeal. Challenging the decision takes time and effort.
The insurance company saves money every time someone accepts a denial without fighting. They’re counting on your exhaustion and frustration.
Common Denial Tactics
A denial might cite technical issues like paperwork errors. It might claim lack of evidence or policy exclusions that may not truly apply.
The denial letter is often intimidating and uses legal language. It’s designed to make you think the decision is final.
Fighting Back Against Denials
Instead of giving up, you should review the denial carefully. Understand exactly why they denied your claim.
Collect any missing documentation. This might include additional medical records, witness statements, or employer notes.
Then, file an appeal promptly. Follow your state’s specific deadlines—missing them can be fatal to your case.
Understanding the common reasons for denials helps you refute the insurer’s claims. For example, they might dispute the relationship between the injury and the accident.
Statistics show that many claim denials are reversed on appeal. Insurance companies deny claims hoping you won’t fight back. If your claim is legitimate, an appeal with proper documentation and legal support often succeeds.
Misleading Information
Half-Truths and Misrepresentations
Adjusters might misrepresent policy details, coverage limits, or legal obligations. Their goal is to discourage you from fighting for the full amount you deserve.
They may imply you only qualify for a fraction of your losses. They might say certain treatments aren’t covered, even if your policy states otherwise.
How This Tactic Works
Such tactics rely on the claimant’s unfamiliarity with insurance rules. Most people don’t read their policies carefully or understand insurance regulations.
The adjuster sounds authoritative. You assume they’re telling the truth about what you’re entitled to.
Understanding your policy’s coverage limits is essential. This knowledge helps you catch misrepresentations.
Protecting Yourself
To protect yourself, request all statements in writing. Keep a paper trail of all communications.
If you detect inconsistencies or suspect you’re being misled, seek expert advice. A trusted attorney or an independent adjuster can clarify your rights and entitlements.
Don’t rely solely on what the insurance adjuster tells you verbally. Verify everything in your policy documents.
Additional Insurance Tactics to Watch For
Recorded Statements
Insurance adjusters often ask for recorded statements early in the claims process. They present this as routine or required.
However, they’re looking for ammunition to deny or devalue your claim. They’ll ask leading questions designed to get you to minimize your injuries or admit fault.
Anything you say can be taken out of context and used against you later. You’re not required to give a recorded statement to the other driver’s insurance company.
Quick Settlement Pressure
Some adjusters push for fast settlements before you finish medical treatment. They offer quick money to close your case.
This is dangerous. You might not yet know the full extent of your injuries or future medical needs.
Once you settle, you can’t reopen the case if your injuries turn out to be worse than expected. Never settle before reaching maximum medical improvement (MMI).
Social Media Surveillance
Insurance companies routinely monitor claimants’ social media accounts. They’re looking for posts that contradict your injury claims.
A photo of you smiling at a family gathering can be twisted to argue you’re not really suffering. A check-in at the gym can be used to dispute your physical limitations.
Be very careful what you post during your claim. Better yet, avoid social media entirely until your case is resolved.
Insurance investigators regularly check Facebook, Instagram, Twitter, and other platforms. Even innocent posts can be misinterpreted. That photo of you standing at a family event doesn’t show the pain you’re in—but insurers will use it against you.
Protecting Your Rights
When to Get Legal Help
If you suspect any of these tactics are being used against you, consider consulting an experienced attorney. They can guide you through the claims process.
An attorney ensures proper documentation. They hold the insurer accountable for fair dealing.
How an Attorney Levels the Playing Field
An attorney can negotiate on your behalf. They know the true value of claims and won’t accept lowball offers.
They help you gather expert testimony. They review settlement offers to confirm they are fair and adequate.
They understand insurance company tactics. They know how to counter each dirty trick.
The Bottom Line
While insurance companies may rely on these “dirty tricks” to discourage claimants, you don’t have to face them alone. Having the right knowledge and support can help you level the playing field.
You can secure a fair resolution to your claim. Don’t let insurance company tactics cheat you out of the compensation you deserve.
Red Flags: Signs Your Insurance Claim Is Being Manipulated
- Adjuster repeatedly requests the same documents you've already provided
- Weeks pass between communications with no explanation for delays
- Initial settlement offer seems far too low for your medical bills and injuries
- Adjuster pressures you to settle quickly before finishing treatment
- You're told certain coverage doesn't exist that you know is in your policy
- Adjuster asks for recorded statements before you've consulted an attorney
- Your claim is denied for vague or confusing reasons
- Adjuster seems friendly but dismissive of your injury severity
Don't Let Insurance Companies Take Advantage of You
Insurance adjusters are trained to minimize payouts using the tactics described above. You don't have to face them alone. Our experienced attorneys know every insurance company trick and how to counter them. We fight to get you the full compensation you deserve—not the lowball offer they hope you'll accept. Free consultation—no fees unless we win.
