Common Tactics Insurance Companies Use to Minimize Payouts

Dealing with an insurance company can be a challenging and intricate process when you are seeking compensation for injuries or property damage. Many find themselves up against various tactics insurance adjusters use to minimize payouts. Here are some of the most common ones.

Quick Settlement Offers

Insurance companies often make initial settlement offers shortly after an incident. These offers may seem tempting, but they are typically much lower than the claim’s actual value. Quick settlements aim to capitalize on claimants’ immediate financial needs and discourage them from seeking legal advice.

Delaying the Claims Process

Insurance companies may intentionally prolong the claims process. Delays can frustrate claimants, leading them to accept lower settlements out of desperation. This tactic is particularly effective when individuals face financial strain due to extensive losses.

Disputing Liability

Insurers may attempt to shift or dispute liability, arguing that the claimant shares some responsibility for the incident. By doing so, they aim to reduce the overall payout amount, invoking Nevada’s comparative negligence law. This law allows victims to recover compensation even when they are partially to blame for their injuries as long as it is 50% or less, but their percentage of fault will also reduce their compensation. For example, if you are awarded $50,000 and found 30% to blame, you will receive 70% of your award or $35,000.

Undervaluing Injuries

Insurance adjusters may downplay the severity of your injuries sustained in an accident. They might challenge the necessity of medical treatments, diagnostic tests, or long-term care, ultimately minimizing the perceived financial impact of the injuries.

Surveillance and Social Media Monitoring


Insurance companies may conduct surveillance on claimants, monitoring their activities to find evidence that contradicts the reported injuries. Additionally, social media platforms are scrutinized for posts or images that may be used to dispute the extent of damages.

Unreasonably Low Property Damage Estimates

In cases involving property damage, insurers may provide unfairly low estimates for repair costs or undervalue the depreciated value of damaged items. This tactic aims to reduce the overall settlement amount paid to the claimant.

Requiring Excessive Documentation

Insurance companies may demand extensive documentation and proof of damages, making the claims process burdensome. This tactic is designed to discourage individuals from pursuing their claims due to the perceived complexity and time-consuming nature of gathering documentation.

Using Recorded Statements Against Claimants

Insurance adjusters often request recorded statements from claimants. However, these statements can be manipulated or taken out of context to undermine the claim. Adjusters may phrase questions in a way that leads claimants to inadvertently admit fault or downplay the severity of their injuries. As a result, it is crucial for claimants to be cautious and seek legal advice before providing recorded statements.

Understanding these common strategies can empower you to protect your rights. When facing such challenges, hiring legal representation becomes essential. An experienced Las Vegas personal injury attorney can help you counter these tactics, build a strong case, and negotiate for the rightful compensation you deserve.