10 Insurance Bad Faith Tactics They Don't Want You to Know
Insurance companies are not on your side. Despite friendly commercials and promises to be 'good neighbors,' their primary goal is to minimize payouts and maximize profits. Understanding their tactics is your first line of defense.
Tactic 1: The Quick Lowball Offer
Within days of your accident, an adjuster may contact you with a 'generous' settlement offer. This is almost always a fraction of what your case is worth. They're hoping you'll accept before you understand the full extent of your injuries or consult an attorney. Never accept an initial offer without legal consultation.
Tactic 2: Recorded Statements
Adjusters will ask for a recorded statement 'just for their records.' In reality, they're looking for inconsistencies or admissions they can use to deny or reduce your claim. You are under no legal obligation to provide a recorded statement to the other party's insurance company.
Tactic 3: Surveillance and Social Media Monitoring
Insurance companies hire private investigators and monitor your social media accounts. A photo of you smiling at a family event could be used to argue your injuries aren't as severe as claimed. Delete nothing (that could be spoliation), but set all profiles to private and avoid posting about your recovery.
Tactic 4: Delay, Delay, Delay
Insurance companies know that financial pressure increases over time. By delaying your claim, they hope you'll become desperate enough to accept a lower settlement. Medical bills pile up, you can't work, and suddenly their lowball offer looks more attractive.
Tactic 5: Disputing Medical Treatment
Insurers may claim your treatment was unnecessary, excessive, or unrelated to the accident. They use their own doctors (known as Independent Medical Examiners) who have a financial incentive to minimize your injuries. Always follow your treating physician's recommendations.
How to Fight Back Against Bad Faith
Document everything in writing. Keep detailed records of all communications with the insurance company. Follow your medical treatment plan. Never accept the first offer. Consult with a personal injury attorney who can identify bad faith practices and hold the insurance company accountable. In some states, bad faith practices can result in additional damages.
Frequently Asked Questions
What is insurance bad faith?
Insurance bad faith occurs when an insurer unreasonably denies, delays, or underpays a valid claim, violating their duty to act in good faith toward the policyholder or claimant.
Can I sue my insurance company for bad faith?
Yes, in most states you can sue for bad faith. Remedies may include the original claim amount, consequential damages, and in some cases, punitive damages.
How do I prove insurance bad faith?
Evidence includes written communications showing unreasonable delays, documentation of denied claims without valid reasons, and proof that the insurer failed to conduct a proper investigation.
Injured? Get Your Free Consultation
Our attorneys fight for maximum compensation. No fee unless we win.
Get Free Case Review →