When you file an insurance claim, you likely expect the process to be straightforward and as simple as reporting the issue, providing the necessary documentation, and receiving the compensation you’re owed. Unfortunately, insurance companies often have other plans. Many use tactics designed to deny or delay claims, making it harder for policyholders to get the money they need when they need it most.
Understanding these strategies can help you recognize when you’re being unfairly treated and take action. Below, our experienced attorneys at Red Dirt Legal have put together ways you can seek out these tactics and tips to avoid them.
Common Strategies Insurance Companies Use
Delaying Claim Processing
One of the most frustrating tactics insurers use is simply dragging their feet. They might claim they’re experiencing a high volume of claims, request excessive documentation, or repeatedly transfer your case to different adjusters. The goal? To wear you down so you either give up or accept a lower payout than you deserve.
Denying Claims Based on Technicalities
Insurance companies often comb through policies looking for loopholes to justify denying claims. This might include arguing that a claim wasn’t reported on time, that a minor error was made in the paperwork, or that certain damages aren’t covered under the policy.
Lowballing Settlements
Another common tactic is offering settlements far below what a claim is worth. Insurers may try to convince policyholders that this is the best they can do, hoping they’ll accept the offer out of frustration or financial desperation.
Misinterpreting Policy Language
Insurance policies are often filled with complex legal language that can be difficult to interpret. Some insurance companies take advantage of this by deliberately misrepresenting coverage details to justify denying or reducing claims.
Claiming Pre-Existing Conditions or Prior Damage
For health, auto, and property insurance claims, insurers frequently argue that damage or injuries existed before the claim was filed. They might use old records, vague language, or selective policy interpretations to deny coverage.
Requiring Unnecessary Documentation
While it’s common for insurance companies to request evidence, some go overboard, repeatedly asking for documents that aren’t relevant to the claim. This is another way to frustrate claimants into giving up.
Disputing Liability
In cases involving accidents or property damage, insurers may try to shift the blame elsewhere. They might argue that you were partially at fault or that a third party should be responsible for covering the damages.
How to Fight Back Against These Tactics
If you suspect your insurance company is unfairly delaying or denying your claim, there are steps you can take to protect your rights and push for a fair outcome.
1. Document Everything
From the moment you file your claim, keep detailed records of all communications with your insurance company. Save emails, take notes on phone calls, and request written explanations for any decisions made.
2. Review Your Policy Carefully
Know what your policy covers and doesn’t cover. If your insurer is using vague language or misrepresenting coverage, having a clear understanding of your policy can help you challenge their claims.
3. Don’t Accept the First Offer
If you receive a lowball settlement, don’t be afraid to negotiate. Insurance companies count on policyholders accepting less than they deserve, but you have the right to push for a fair payout.
4. Seek Legal Advice
If your insurer continues to delay or deny your claim without a valid reason, consider consulting an attorney with experience in insurance disputes. At Red Dirt Legal, we believe in holding insurance companies accountable and ensuring our clients get the compensation they’re entitled to.
5. File a Complaint
If your insurer is acting in bad faith, you can file a complaint with the Oklahoma Insurance Department. This can sometimes put additional pressure on insurers to handle your claim properly.
Contact Red Dirt Legal Today
Insurance companies are businesses first and foremost, and their priority is protecting their bottom line. That doesn’t mean you have to accept unfair treatment. If you’re struggling with a delayed or denied claim, Red Dirt Legal is here to help. Our experienced team knows the tactics insurers use and how to fight back.
Contact us today to schedule a consultation and take the first step toward getting the compensation you are owed.