Friend or Foe: Is Your Insurance Company Treating You Fairly?

We all purchase insurance for peace of mind and financial protection. But when things go wrong, our insurance companies aren’t always there for us as they should be. Learn how to navigate insurance company challenges from our personal injury experts. 

Insurance is supposed to be there when you need it most, but your coverage is only as good as your company’s promise to release it. When you pay for protection and make a claim, your insurance company may make it difficult at every turn. 

Can you challenge your insurance?

Our team at The Morris Law Group knows all too well what can happen when insurance companies go from friend to foe. Our lawyers are shedding light on the complexities of your relationship with insurance companies, common claims issues, and how to navigate the claims process effectively.

The Business of Insurance: Profit vs. Protection

Insurance is financial protection, but at its core, it’s a business selling a product and making a profit. Insurance companies give us financial security and peace of mind. Still, they are driven to keep profits healthy, which can cause a conflict between saving money and fulfilling their duty to protect policyholders. 

Insurance companies collect your premiums and invest them to generate income. It’s a process that turns them a very pretty penny—in 2020 alone, Canadian insurance companies profited by $1.321 billion. 

When you file a claim, the insurer must pay out some funds to cover your losses. Though you’d think their profits would leave them feeling generous, many adjusters are incentivized to minimize payouts. They look for loopholes, scrutinize every aspect of your claim, and explore every way to reduce or deny your claim. 

8 Deceptive Tactics Used by Insurance Companies

When filing an accident insurance claim, your provider assigns an adjuster to your case. Their job is to investigate your situation and determine the rightful compensation. Unfortunately, some companies have deceptive policies and look for ways to reduce your payouts. Don’t expect a seamless process—understand the fine print on your insurance policy and document everything you may need for legal proof later. 

#1: Misrepresented Coverage

Most regular people aren’t insurance experts, and adjusters bank on your ignorance. They may purposefully misinterpret your policy terms, mislead you about your eligible benefits and coverage limitations, and downplay your rights. Those insurance contracts are long and confusing legalese, so read your contract and don’t take your adjuster at their word. 

#2: Unreasonable Demands

Adjusters need information to assess your claim, but beware if you receive a mile-long list of requests for documentation. Some information requests are excessive, irrelevant, and designed to discourage you from fighting for a fair payout. 

How to argue with an insurance company?

Don’t let adjusters overwhelm you during the insurance company claims process; consult a lawyer to find out which information is pertinent and where to decline to share. Remember that they’re trying to get you to share as much as possible so they can exploit the information to reduce or deny your claim. 

#3: Downplaying Your Damages 

During insurance company claims handling, many adjusters may try to downplay your injuries or the true extent of your losses. If they can find a way to shift those optics, they will. They may pressure you to see their doctors, who may be biased to minimize your injuries. If you seek medical treatment from your own doctor, they might try to discredit them or argue that you could have returned to work sooner. 

Can I dispute a settlement?

You don’t need to accept bad offers based on downplayed injuries. You can continue to negotiate and advocate on your own or get a lawyer on your side to help in the fight. 

#4: Giving Lowball Offers

Insurance claims can be a long process. Adjusters often offer settlements far lower than your claim’s true value. Insurance companies know that people dealing with personal injuries are bleeding cash between healthcare treatments, hospital stays, rehab, lost wages, and more. Some companies bank on your desperation and hope you’ll take the lowball offer because it means money in your hands today. Don’t expect insurance company support and fair offers. 

Can you dispute the insurance claim settlement?

Absolutely. Adjusters can be quite convincing with their lowball offers, but their word is not final. You have every right to hold out for a fair offer and dispute your claim settlement all the way to a court case with an insurance dispute lawyer, if necessary. 

#5: Surveilling Victims

You’ve already been through a life-changing and potentially traumatizing event, but that won’t stop many insurance adjusters from watching you move through life. Though it feels invasive, hiring private investigators to surveil you in public spaces is not illegal, as long as their efforts aren’t excessive or intrusive. 

Remember that being followed doesn’t mean you’re doing anything wrong—simply stay calm, record the vehicle’s details, person, date, and time, and consult your lawyer about what to do next. If you’re honest about your limitations, it’s more of an inconvenience than anything. 

#6: Pressure to Admit Fault

Adjusters are conversational masters who, much like great salespeople, know how to read people and understand which buttons to press. If they sense you’re unassertive, they’ll push you to admit fault where there is none. If they sense you’re aggressive, they’ll try to twist your words against you. 

They want you to admit fault in a recorded statement—even partial fault is enough to reduce or deny claims. If they get under your skin, they may even convince you to take a quick settlement in exchange for an admission of fault. If you’re not at fault, don’t fall for these tactics and seek out a lawyer for insurance claims who can advocate the a pro. 

#7: Waiting You Out

Insurers have a pile of cash, a flush team of adjusters, and legal representation to wait you out. You’re in a far more vulnerable position than a massive corporation with deep pockets. They may intentionally slow down the process, hoping you’ll accept a lower settlement out of ongoing stress, frustration, or dwindling funds. 

Can you sue an insurance company for taking too long in Canada?

A lawyer for insurance knows your rights around time limitations and can help you act accordingly. In most cases, an insurance company trying to delay for too long opens up opportunities for you to file a lawsuit against them for acting in bad faith. 

#8: Discouraging Hiring a Lawyer

Adjusters don’t want you to have legal representation or insurance lawyers because it makes their jobs more difficult. They can’t manipulate you or use unfair tactics if an attorney is by your side advocating for your rights. While it costs money to hire an attorney, they could increase your payout tenfold so you don’t have to accept lowball offers. 

Navigating the Claims Process

While dealing with insurance adjusters, there are ways to fight for your rights through the process:

• Document everything that could be of relevance to your case, including calls, letters, emails, photos, videos, health records, and more. You won’t regret being overprepared—the more information, the better.
• Seek medical attention from a trusted doctor and follow their recommendations.
• Provide accurate, consistent information to your insurer. Don’t exaggerate your injuries and losses because your credibility is everything if this claim makes it to a court case.
• Don’t accept the first offer. It will never be the best offer—they expect you to negotiate for more.
• Seek some help from an insurance lawyer who will educate you on your legal resources and rights, advocating on your behalf. They won’t get paid unless you get a settlement, so there’s little risk on your end. 

The Morris Law Group—Insurance Claim Lawyers Near Me

Dealing with major insurance companies after an accident can be stressful, especially if they employ tricky tactics to minimize your payout. Don’t assume your insurance company is in your corner – they’re biased to move in their best interests. 

If you’re struggling with an insurance claim or fighting with an adjuster, The Morris Law Group’s lawyer injury team is ready to help. We’ll listen and serve as your advocates and lawyers for insurance claims to help you navigate the complicated legal and insurance systems. Request a free consultation or call us at 905-526-8080 to learn more.