7 Tactics Insurance Companies Use to Reduce Your Settlement

Insurance companies are businesses, and their goal is to pay as little as possible on every claim. Here are the most common tactics they use — and how to fight back.

1. The Quick Lowball Offer

The adjuster contacts you within days of the accident with a "generous" offer. They know you're stressed and may not understand the full value of your claim.

How to counter: Never accept the first offer. Wait until you've completed medical treatment and understand the full extent of your injuries.

2. Requesting a Recorded Statement

The adjuster asks you to give a recorded statement "for their records." Anything you say can be used to minimize your claim.

How to counter: Politely decline. You are not legally required to give a recorded statement to the other driver's insurance company.

3. Disputing Medical Treatment

The insurer argues that your treatment was excessive, unnecessary, or unrelated to the accident.

How to counter: Follow your doctor's treatment plan consistently. Get referrals to specialists when needed. Keep all medical records organized.

4. Blaming Pre-Existing Conditions

They review your medical history and attribute your injuries to pre-existing conditions rather than the accident.

How to counter: The "eggshell plaintiff" rule means they must take you as they find you. If the accident worsened a pre-existing condition, they're still liable for the aggravation.

5. Using Social Media Against You

Adjusters monitor your social media for posts that contradict your injury claims. A photo of you smiling at a family event could be used to argue you're not really in pain.

How to counter: Set all social media to private. Better yet, avoid posting anything about your activities until your case is resolved.

6. Delaying the Process

The insurance company drags out negotiations, hoping you'll get frustrated and accept a lower offer out of financial desperation.

How to counter: Be patient. If they're unreasonably delaying, an attorney can file a lawsuit to force action. The statute of limitations creates urgency on their side too.

7. Offering a "Final" Number Early

The adjuster says "this is our best and final offer" early in negotiations. It almost never is.

How to counter: Respond with a detailed counter-offer supported by documentation. Most "final" offers have significant room for negotiation.

The Best Defense: Hire an Attorney

The single most effective way to counter insurance company tactics is to have legal representation. Adjusters know that represented claimants are more likely to file lawsuits and receive higher settlements. Studies show that hiring a lawyer results in 3.5× higher settlements on average.