While insurance representatives are bound by ethical guidelines, they don’t always abide by them. In fact, insurance adjusters may tell lies if they believe it will benefit them or their company. The claimant is often on the receiving end of such lies, as they are the ones that the insurance company is financially beholden to.
An adjuster works for the insurance company, and the insurance company’s goal is to make as much money as possible—even at your expense. Hire a personal injury attorney to protect you from lies and other bad-faith tactics and to demand the entire insurance settlement you are entitled to.
Why Insurance Adjusters Lie
Insurance adjusters may have varying motivations for lying to a claimant. Some of the most common reasons for an insurance adjuster to be dishonest include:
- Their employer’s culture: Insurance companies are not charitable organizations. These companies are in a cutthroat industry, and it’s no secret that every insurance company is out to make money. Therefore, the culture at any given insurance company may be to avoid losses to maximize profit, and that may mean lying to (and denying compensation to) claimants.
- The desire for recognition (and even a pay raise): Insurance companies generally value adjusters who save the company money. Therefore, many adjusters may get the idea that if they lie to a claimant in a way that saves their employer money, they will receive positive recognition as a reward.
- Perverse financial incentives: Studies show that poorly designed employee incentives can promote unethical behavior. If an insurance adjuster believes that lying to a claimant can somehow enhance their standing or pay, they may not think twice about acting unethically. This is not an irrational assumption, as denying a claimant money generally means making money for the insurance company.
- Lack of regard for the claimant: Adjusters who lack basic empathy or compassion for the claimant may not think lying is a big deal. This is one less barrier to the adjuster deceiving the claimant.
- General lack of ethics: Not everyone operates by the same ethical standards. Some people, including certain insurance adjusters, believe that lying and other forms of deception are acceptable so long as they achieve their desired end result. If someone without a strong moral or ethical compass handles your insurance claim, you may face a difficult road to a fair settlement.
We know that even people who value morality sometimes act in an unethical way, particularly when they believe they’ll get away with it. Some insurance companies condone or even encourage deception, which may give adjusters the green light to lie to you.
In What Circumstances Might I Face Lies From Insurance Adjusters?
When you suffer an injury, experience property damage, or lose a loved one, there is a chance that one or more insurance companies will owe you compensation. Some common events that can lead to insurance claims are:
- Car accidents
- Truck accidents
- Pedestrian accidents
- Motorcycle accidents
- Rideshare accidents
- Bus accidents
- Slip and falls
- Trip and falls
- Physical attacks
- Animal attacks
- Storms and other events resulting in property damage
Many personal injury attorneys help a wide range of claimants. Whatever your reason for filing an insurance claim, know that a lawyer can protect you from the potential harm of an insurance adjuster’s lies and any other threats to your claim.
Types of Lies That You May Face from an Insurance Adjuster
Research indicates that some insurance adjusters might even engage in unethical behavior when they believe they are being ethical. This may seem contradictive, but it indicates just how pervasive borderline and outright unethical behavior is in the insurance sector.
Some subjects about which an insurance adjuster or other insurance representatives may lie include:
Whether You Did Something to Void Coverage
There are many circumstances that can void an insurance policy or exclude someone from an insurance settlement. An insurance adjuster might lie about voided coverage by claiming that the claimant:
- Caused an automobile accident (when, in fact, someone else caused the collision)
- Failed to take basic measures to prevent property damage (such as putting down sandbags before a storm)
- Is seeking compensation for a preexisting injury
- Intentionally caused property damage
Insurance adjusters are students of policies. They generally know the conditions that may void coverage, and they may falsely claim those conditions occurred (to avoid paying the claimant).
How Much Compensation You Are Entitled To
Insurance companies often know that they can’t avoid paying the claimant altogether. In such cases, the goal may become to pay the claimant as little as the insurance company possibly can.
An insurance adjuster may try to reduce your compensation by being dishonest about:
- The severity of your injuries
- The types of medical care the insurance company believes you need
- Whether the insurance company believes your injury is disabling
- The cost of repairing or replacing damaged property
The insurance company may disingenuously claim that your covered losses are less expensive than they are. The adjuster can also try to remove specific losses, like a surgery, from their settlement offer.
Whether the Insurance Company Is Willing to Increase Its Settlement Offer
An insurance adjuster may offer you a lowball settlement on behalf of its employer. If you and your personal injury attorney refuse this offer (and explain that it is unfairly low), the adjuster may claim that it’s the insurer’s best offer—this may be a lie.
Insurance companies often:
- Recognize when a claimant has a legitimate case for more compensation than the insurer has offered
- Stand firm behind an initial lowball offer in hopes that the claimant won’t call their bluff
- Eventually engage in negotiations, and increase their offer, once it becomes clear the claimant won’t accept the lowball offer
Lawsuits are often an option for claimants. Insurance companies generally prefer to settle, as they may lose a larger sum of money if they go to trial. Your personal injury lawyer will present fair settlement demands and insist that the insurance adjuster meets those demands.
Other Bad-Faith Tactics That You May Face from Insurance Companies
Lying is just one of many bad-faith tactics in insurance adjusters’ arsenal. Other strategies you may face from the insurance company include:
- A denial: A denied claim can be a stunning development, especially when you know that you deserve compensation from the insurance company. Too often, claimants assume that a denied claim is a final decision, so they file to follow up and demand a reconsideration from the insurer.
- Delays after the lowball offer: If you receive a lowball settlement offer from an insurance adjuster, the insurance company may take its time in responding to your request for reconsideration. The insurer may hope that, if it delays, you will eventually agree to its lowball offer (perhaps out of financial desperation).
- Hardball negotiations: If the insurance company engages your attorney in negotiations, it may not cede much ground. Even if the insurer increases the value of its offer, it may only do so modestly.
Insurance claim lawyers are familiar with each of these tactics, as well as strategies to counter them. Allow a lawyer to deal with lies and other deceptive practices from insurance adjusters for you.
How to Protect Yourself from Lies and Other Bad-Faith Insurance Tactics
Hiring a personal injury lawyer is arguably the simplest and most effective way to protect yourself and your claim from bad-faith insurance tactics. Whether it is the lies of an insurance adjuster, an unfair denial, or another questionable strategy, an attorney will:
- Be responsible for all interactions with the insurance company, so your lawyer will be the one facing any bad-faith interactions
- Immediately recognize that the insurance company is not operating in good faith, and will take a defensive posture when it comes to your claim
- Respond appropriately to the specific tactic the insurance adjuster (or any other insurance representative) is using
- Not let the bad-faith tactic result in an unfavorable claim outcome
Personal injury attorneys are acutely familiar with insurance companies, as well as the unethical practices adjusters sometimes use. Rely on a lawyer’s experience and knowledge to benefit your claim.
How Attorneys Help Claimants Obtain the Money They Deserve
Protecting you from unfair insurance tactics is just one of the many ways that a lawyer can help you. Some of the other ways that a lawyer will assist you include:
Becoming Well-Versed in Policy Details
The details of an insurance policy can be the record of authority, particularly when an adjuster attempts to mislead you about those details. For this reason, your lawyer will become well-versed in all relevant policy details.
Handling All Communications with Adjusters (and Others Involved in the Claim)
Your lawyer will:
- Become your mouthpiece to the insurance companies as soon as you hire them
- Provide all information about your losses to the adjuster
- Help you craft any statements you need to provide to the insurance company (in a written format, if possible)
- Remain in frequent contact with the insurance company to ensure your claim moves forward promptly
You should not have to expose yourself to risk or deal with the burden of an insurance claim. Let a lawyer take on communications and every other aspect of your claim.
Documenting the Claimant’s Losses
Your lawyer must be confident in their settlement demands. This will require them to understand exactly what losses you’ve suffered, and they may document those losses with:
- Photographs of property damage
- Photographs and medical images of injuries
- Invoices related to property damage (such as the cost of cleanup after a storm or replacing a damaged motor vehicle)
- Medical bills
The nature of your insurance claim and the unique details of your losses will determine what kinds of documentation your lawyer secures.
Determining the Exact Financial Value of Your Claim
The success of your claim will hinge upon whether your lawyer secures enough compensation to cover your losses. This means your lawyer must know the exact financial value of those losses.
Your attorney will consider all of your present and future losses as they calculate your personal injury case value. If you have a disabling injury or other long-term losses, this may increase the amount of money you deserve from the insurer.
Negotiating on Your Behalf
Once your lawyer has an accurate calculation of your losses and all other necessary documentation, they can engage in settlement talks with the insurance company.
Initiating and Completing Any Necessary Legal Action (a Lawsuit)
Suing may be an option for you, and this course of action may be necessary if the insurance company does not offer the compensation you deserve through a settlement.
Insurance Companies May Have to Cover Losses Like These
Each insurance claim involves different losses of varying values. One benefit of hiring a lawyer is that they will document your unique losses and demand fair compensation based on those losses.
Some examples of losses you may seek compensation for include:
For Property Damage Claims
Those who suffer property damage (whether through a storm, auto accident, or other event) may receive compensation for:
- Removing debris and other damaged property
- Cleaning and sterilizing a property (such as one inundated by flood waters)
- Repairing any property that can be repaired
- Replacing any property that cannot be repaired
- Securing temporary shelter
The details of your insurance policy (or a liable third party’s policy) should stipulate what losses you deserve compensation for.
For Injury Claims
Those seeking compensation for injuries often receive money for:
- Emergency medical services
- Surgeries
- Imaging services
- Medications
- Medical equipment
- Rehabilitation services
You may also seek compensation for any mental health services that are relevant to your insurance claim.
For Claims Involving a Death
Insurance companies are sometimes liable when someone loses their life. Funeral expenses, lost financial support, and certain other losses may be among those included in a death benefit claim.
Why You Shouldn’t Wait to Hire an Insurance Claims Lawyer
Insurance companies often require claimants to report their losses within a brief period of time. Don’t give the insurance adjuster any reason to deny you the compensation you deserve.
Protect yourself and prioritize your claim by hiring a personal injury lawyer as soon as possible.