If you or a loved on has sustained injuries from a car accident, you’re likely counting on the insurance company to cover your losses fairly. Unfortunately, many accident victims are shocked to discover their claim is worth far less than they expected. The truth is: insurance companies are in the business of minimizing payouts—and they use a range of tactics to undervalue legitimate claims.
Here’s how it happens—and what you can do to protect yourself.
Insurance Companies Undervalue Claims
Insurance adjusters are trained to settle claims quickly and for as little money as possible. Here are some common tactics they use:
Quick Lowball Settlement Offers
After your accident, an adjuster may call you with a fast settlement offer. It might sound appealing, especially if you’re facing medical bills or lost wages—but it’s often far below the true value of your claim. Once you accept, you typically can’t reopen the case.
Disputing Medical Treatment
Insurers may argue that your treatment was unnecessary, too expensive, or unrelated to the accident. They often rely on “independent medical exams” (IMEs) that are anything but independent.
Blaming You For The Accident
Even in clear-cut cases, adjusters may try to assign partial or full blame to you. In comparative fault states, this can significantly reduce your compensation—or eliminate it entirely.
Undervaluing Pain And Suffering
Non-economic damages like pain, emotional distress, or loss of enjoyment are difficult to quantify—and insurers know it. They may offer minimal amounts unless you have strong legal representation.
Using Software To Minimize Payouts
Many companies use claim evaluation software (like Colossus) to assign value to injuries. These systems rely heavily on codes, keywords, and algorithms—not the real human impact of your injury.
What You Can Do To Protect Your Rights
Knowing how to respond is critical to protecting your rights and maximizing your compensation:
Don’t Accept The First Offer
Always be cautious with early settlement offers. These are rarely the insurer’s best offer, especially if you haven’t completed treatment or fully evaluated your losses.
Document Everything
From medical records to lost wages to journal entries about your recovery, thorough documentation strengthens your claim and provides leverage in negotiations.
Avoid Giving Recorded Statements
You are not legally required to provide a recorded statement to the at-fault driver’s insurance company. These statements can be used to twist your words and undermine your claim.
Stay Off Social Media
Insurance companies monitor claimants’ online activity. Even an innocent photo or comment can be used to question the severity of your injuries.
Consult An Experienced Car Accident Attorney
A personal injury lawyer can level the playing field. Attorneys understand the tactics insurers use and can negotiate aggressively—or take the case to trial if necessary.
You Deserve Full Compensation
If you’ve been injured in a car accident, don’t leave money on the table. Insurance companies have lawyers—so you should. Working with a skilled personal injury attorney ensures that your medical bills, lost income, pain, and suffering are fully accounted for in your claim.
