Are you wondering what do insurance companies fear? I never expected to be the one dispensing insurance advice, but life has a way of teaching you unexpected lessons. A couple of years ago, I was in a bad car accident. The other driver was clearly at fault, and I figured their insurance would take care of everything without hassle. (I mean, I paid my premiums, so shouldn’t I be in good hands?). Well, that’s not what happened. What seemed like a straightforward claim turned into a drawn-out battle of lowball offers, delays, and endless frustration.
Long story short, I eventually got a fair settlement. But only because I learned to fight for it. I had to educate myself on the insurance claims process, negotiation tactics, and the various tactics that insurance companies often employ. It was a crash course (no pun intended) in how to deal with insurers.
Now, I find myself helping friends, family, and internet strangers with this knowledge. So, I want to share everything I wish I’d known from the start. I will share it in plain English. And also from the perspective of someone who’s been through the wringer and come out the other side.
A car accident can be just the beginning of a lengthy battle with insurance. Many people learn this the hard way when a seemingly simple claim turns into a drawn-out negotiation. (I know I did.)
Why Insurance Claims Can Feel Like a Battle
When you file an insurance claim, expect the insurance company to compensate you for your loss smoothly and efficiently. After all, isn’t that what insurance is for? The reality can be very different. Insurance companies are businesses, and their goal is to protect their bottom line. Every dollar paid to you is a dollar less profit for them, so there’s a logical tension between what you need and what they want. I don’t say this to portray insurers as evil; it’s simply how their incentives operate.
The adjuster assigned to your case might be a nice person (many are friendly.) But remember: their job is literally to settle your claim for as little money as possible. Some companies even reward adjusters for keeping payouts low. For example, Allstate, which is a giant insurer, has been notorious for using sneaky tactics and delay strategies to wear people down. They even gave their adjusters bonuses for settling claims cheaply and quickly. In other words, the person on the other end of the phone may have a financial incentive not to give you every penny you’re asking for.
Insurance Reps Get Bonuses
The insurance rep might get a pat on the back (or even a bonus) for saving the company money. This often translates to you getting less money. Knowing this changed how I approached every conversation. I stopped thinking of the adjuster as a customer service rep and started seeing them more like a skilled negotiator on the other side. Many adjusters are trained for this type of work.
Some insurers have even hired consulting firms to help redesign their claims process to pay out less. One infamous revelation was a set of internal slides from Allstate’s consultants, McKinsey & Co., describing a “good hands” vs “boxing gloves” strategy. Publicly, they advertised “You’re in good hands.” But internally, they discussed putting on boxing gloves to fight specific claims and save money.
What Do Insurance Companies Fear?
It’s not just Allstate. The whole industry has similar incentives. A common phrase I later learned is “deny, delay, defend.” The playbook goes: deny the claim (or parts of it) if you can find a reason. And then delay the process as much as possible. And if it comes down to it, defend aggressively if the claimant pushes back or files a lawsuit.
Why do this? Because it often works. If you’re waiting months for an answer, you might be desperate enough to take a low offer just to get it over with. If they deny part of your claim, you might throw up your hands and say, “Fine, whatever.” And if you don’t, the insurance company can drag things out and make it as tedious as possible, hoping you’ll abandon the fight. All of this saves them money in the long run, even if a few determined people (like me) insist on fighting to the end.
There have been real cases and whistleblowers who have confirmed these tactics. For example, independent adjusters in Florida have recently testified that some insurers have manipulated damage reports to underpay or deny claims. Essentially, the higher-ups edited the field adjusters’ estimates to save the company money. An investigation is ongoing into this matter. The point is that insurers will sometimes go to great lengths to minimize payouts.
Common Tactics Insurers Use (and How I Experienced Them)
Every insurance claim is different, but here are some common strategies I encountered (or later learned about) during my ordeal…
Lowball Initial Offer
This is practically guaranteed. The first offer I got for my car was laughably low. Insurers almost always start with a low number. This is done because many people will simply accept it. They are unaware that they can negotiate or believe it’s the best they’ll get. One legal resource notes that the first offer is rarely the highest the company can go. They expect you to negotiate. In my case, the first check they dangled wouldn’t even cover half the repair costs I’d documented. I laughed when I saw it. But plenty of folks in a hurry just cash that check and move on.
Delays and “Waiting You Out”
This one drove me nuts. After I filed, the adjuster went dark. Calls started going to voicemail, and I got generic “we’re still reviewing” replies. Often, delaying is a deliberate tactic. They drag their feet, hoping you’ll get frustrated or desperate enough to settle for less. I documented every call and email. This was good because when I finally sent a firmly worded letter, things suddenly started moving again. It confirmed my suspicion that the silence wasn’t just because they were busy. They were testing my patience.
Excessive Paperwork or Requests
As part of the delay game, they might bury you in paperwork. For example, after I provided one repair estimate, they demanded another. This was followed by an itemized list of everything already included in the first report. Frustrating, but I complied, so they had no excuse to stall further. This tactic involves making the process so tedious that you’ll be tempted to accept whatever they offer.
Insurance Companies Can Fear Disputing Liability or Coverage
Sometimes, an insurer will play the blame game or claim that something isn’t covered when it is. In a seemingly clear-cut accident, they might say, “We think you were partly at fault,” or for a home insurance claim, “That damage isn’t covered under your policy.” In my case, the other driver’s insurer tried to argue I was partially to blame for getting hit (total nonsense).
I held my ground and refuted that nonsense. I’ve heard of worse… After a hurricane, some homeowners had their claims denied because the insurance company’s engineer insisted the damage was “pre-existing” or not storm-related. In one case, an independent adjuster went on record, stating that companies altered his reports without approval to reduce payouts. This was essentially committing fraud. That’s extreme, but it shows how far they can go to avoid paying.
Pressure and Deadlines
At one point during my negotiations, the adjuster hinted that if I didn’t accept their offer soon, I might start incurring storage fees for my wrecked car. This was a pure pressure tactic. They create a sense of urgency or say, “This is the final offer,” to scare you into settling quickly. Don’t let arbitrary deadlines or scare tactics bully you. A valid claim won’t vanish just because you didn’t accept their low offer on time.
Denial of Claim
The ultimate move is an outright denial. This is when insurers refuse to pay anything (or deny specific parts of the claim). It usually comes with a letter citing some policy clause or disputing the cause of loss. Many people, understandably, just give up when they see “denied.” Insurers know that. A certain percentage will walk away, resulting in a zero payout. Denials can be contested through appeals, legal action, or other means, but the company is likely to bet that most individuals won’t bother.
The key takeaway is recognition. Once you know these moves, you can spot them and not take them at face value. When I realized I was being lowballed and slow-walked, it shifted my mindset from “Oh gosh, I hope they do the right thing” to “Alright, game on… Time to negotiate smartly and assertively.”
How to Fight Back and Get a Fair Payout
Based on my experience, here are some key steps to push for what you’re owed:
Know Your Policy and Gather Evidence
Begin by thoroughly understanding what your policy covers and any specific rules you must follow. Then, document everything. Take photos of damage, keep all receipts and bills, save emails, and write down details of every conversation with the insurer. The more evidence and records you have, the harder it is for them to deny your claim or lowball you.
Don’t Settle for the First Low Offer
Remember, the first offer is almost always a lowball. Politely decline any offer that doesn’t cover your costs and counter with facts. Provide the adjuster with repair estimates, market values, and medical bills. Provide whatever proves the actual value of your loss. Showing that you’ve done your homework (and aren’t afraid to negotiate) can push them to increase the offer.
Stay Firm and Persistent (but Polite)
Treat the process professionally. Be courteous, but don’t be a pushover. If the adjuster is unresponsive, send regular follow-up emails or calls to remind them you’re waiting. Don’t let them forget about your claim. If your contact person isn’t helpful, ask for a supervisor or a different adjuster. Sometimes, a new person can break a logjam. Keep a paper trail of all these interactions. It shows you’ve been doing your part, and you aren’t going anywhere.
Keep an Eye on Deadlines and Push Back on Delays
Know the general timelines for claims in your state (many states require insurers to respond or settle within a certain number of days). If the insurer is dragging their feet without a good reason, call them out (nicely) on it. For instance, send a note saying, “It’s been X weeks and I’ve provided everything you need.
Please update me on the status.” This signals that you’re paying attention. If things get ridiculous (long delays or unjustified stalling), you can even mention that you might file a complaint with the state insurance department. That threat alone can sometimes light a fire under them, because regulators can penalize companies for extreme delays.
Use Outside Help if Necessary
If you’re hitting a wall, consider seeking outside legal help. You can file a formal complaint with your state’s insurance regulator. Many consumers do this when they feel mistreated, and it often leads to a more favourable resolution. Alternatively, if the amount at stake is substantial, consider consulting an attorney or hiring a public adjuster. You can also use Caseway to ask it to help you.
Lawyers (especially for injury claims) often work on contingency. They get paid only if you do, and they can pressure the insurer by threatening legal action.
Even mentioning that you’re talking to a lawyer can sometimes make an insurer take you more seriously. Yes, a lawyer or adjuster will take a cut of the payout, but if they can significantly boost the amount or force a stubborn insurer to pay, it can be worth it. Remember, the insurance companies have experts on their side. Don’t hesitate to get your own if you need to.
Q: Should I accept the insurance company’s first offer?
A: In my opinion, rarely. First offers are typically lowball offers. Insurance companies know some people just accept whatever is put on the table. You almost always have room to negotiate. I’d only consider accepting if by some miracle the offer truly covers all your losses (and you’ve double-checked that). Otherwise, counteroffer with evidence. The one exception is if you need the money immediately and can’t afford to wait – but even then, remember that you might be signing away any further rights once you accept that check.
Q: What if the adjuster stops responding or is taking forever?
A: Unfortunately, this is common. If they go dark, step up your documentation and follow-ups. Send polite emails summarizing the current status and requesting updates. Keep records of each attempt. If it has been an unreasonable amount of time, you can escalate the issue to their supervisor. If you suspect it’s not just slow processing but a tactic, you might hint at involving the state insurance department. In short, be the squeaky wheel… Politely persistent.
Q: They denied my claim (or part of it). Am I just screwed now?
A: A denial is not necessarily the end. First, read the denial letter carefully to understand why it was denied and which policy terms they cited. Sometimes it’s due to missing information (for example, a missing document or form you can still provide). If it’s a matter of coverage interpretation and you believe they’re wrong, you can challenge it. You might file an appeal with the insurance company, providing additional evidence or explanation.
You can also consult a lawyer to send a demand letter if the amount is significant – often, a strongly worded letter from an attorney will make them revisit a denial. And of course, you can file a complaint with state regulators if you suspect the denial is improper. Bottom line: don’t assume “denied” means “game over,” especially if you have a solid case.
Q: The adjuster seems so friendly. Should I trust them?
A: Trust, but verify. It’s beneficial to have a cordial relationship with the adjuster, as this can make the process smoother. But never forget they work for the insurance company, not for you. If there’s a conflict between what’s best for you and what saves the company money, their loyalty is with their employer. Don’t let a friendly demeanour lull you into oversharing or letting your guard down.
If they ask how you are and you casually say, “Oh, I’m fine” (when you have injuries), trust me, that will come back to haunt you later as evidence that you weren’t hurt. Be cordial, but stick to the facts of your claim. And be very cautious if they ask for a recorded statement. You’re not usually obligated to give one to the other party’s insurer, and anything you say could be used against your insurance claim later.
Q: What about hiring a lawyer or public adjuster? Won’t that just cost me money?
A: Indeed, these professionals don’t work for free, but they can be worth it, especially in big or complex claims. Lawyers and public adjusters are familiar with the intricacies of the trade and can often negotiate more favourable settlements. For small claims, a lawyer may not be necessary; for big, complicated claims, they usually are.
Lawyers typically take around 1/3 of a settlement as their fee (if you win), and public adjusters might take 10% or so of a property claim payout. Yes, that’s a chunk of money. But if they can turn a zero into a decent payout or increase a low offer into something fair, then their cut is money well spent. Plus, once a professional is handling it, the insurance company knows they can’t easily push you around. It depends on your situation: if you’re feeling overwhelmed or the stakes are high, consider scheduling a free consultation to get an expert’s perspective.
Q: If I fight my insurance company, will they non-renew or cancel my policy, or jack up my rates?
A: This is a standard fea… “Will they drop me or punish me for making a fuss?” Insurers generally can’t cancel your policy mid-term just for making a claim (unless you lied or committed fraud). Non-renewal at the end of your policy is usually only a risk if you’ve had multiple claims.
As for premiums, an at-fault accident may raise your rate regardless, while a not-at-fault claim usually won’t (at least not officially). In my experience, just negotiating or standing up for yourself on a claim isn’t going to get you “blacklisted.” Don’t let fear of retaliation stop you from pursuing a fair claim. If your insurer genuinely treats you poorly for it, you might be better off finding another insurer anyway.
Q: Are all insurance companies bad? Is it always like this?
A: No, not all of them are out to get you, and not every claim turns into a nightmare. Some companies do have a better reputation for fairness, and I’ve even had the occasional smooth claim experience.
However, the truth is that even a “good” insurance company is still a company that seeks to minimize costs. You’ll never know upfront how a claim will go. Maybe it’ll be easy, perhaps you’ll hit a wall. My approach is: hope for the best, but prepare for the worst. That way, if your insurer handles your claim fairly and quickly, fantastic. And if they don’t, you’ll be ready to advocate for yourself.
I hope these insights from the trenches help someone. Dealing with an insurance claim can feel overwhelming and unfair, but knowledge is power. The more you know about their tactics and your rights, the better you can navigate the process and make sure you’re treated fairly. You paid for that policy to have peace of mind. Don’t be afraid to stand up for what you’re owed.
Feel free to ask follow-up questions or share your own experiences. I’ll try to answer as soon as I can. Good luck, and may the odds be ever in your favour (or at least may your adjuster be reasonable)!
Author: Thomas Blake
