After an accident, you’ll likely find yourself communicating with one or more insurance companies. Whether it’s your own insurer or the at-fault party’s, understanding how insurance companies operate is essential to protecting your right to fair compensation. Insurance adjusters are trained professionals whose job is to resolve claims as quickly and inexpensively as possible—and their interests are directly opposed to yours.
Understanding The Insurance Adjuster’s Role
An insurance adjuster is the company’s investigator and negotiator. They evaluate claims, assess damages, and determine settlement amounts. While adjusters may seem friendly and helpful, it’s crucial to remember that they work for the insurance company, not for you.
The adjuster’s primary responsibilities include:
- Investigating the circumstances of your accident
- Reviewing medical records and bills
- Evaluating property damage
- Determining liability
- Making settlement offers
Insurance companies are businesses focused on profitability. Every dollar they pay in claims reduces their bottom line. This financial reality drives their approach to your claim.
Common Insurance Company Tactics
Being aware of the tactics insurers use can help you avoid costly mistakes.
Quick Settlement Offers
One of the most common tactics is offering a fast settlement before you understand the full extent of your injuries. This might seem helpful when you’re facing medical bills, but accepting too early can be disastrous. Some injuries, like whiplash or traumatic brain injuries, may not show symptoms immediately. Once you sign a release, you cannot seek additional compensation—even if your injuries turn out to be much worse than initially believed.
Recorded Statements
Adjusters often request recorded statements shortly after an accident. They may frame this as routine or necessary for processing your claim. In reality, they’re looking for inconsistencies or statements they can use to minimize or deny your claim. You are not legally required to provide a recorded statement to the other driver’s insurance company.
Broad Medical Authorizations
Insurance companies may ask you to sign a medical authorization form that gives them access to your entire medical history. They use this access to search for pre-existing conditions they can blame for your injuries or to argue that your current treatment is excessive. Only provide records directly related to your accident injuries.
Minimizing Your Injuries
Adjusters may downplay the severity of your injuries, suggest that certain treatments weren’t necessary, or claim that your injuries were pre-existing. This tactic aims to reduce the value of your claim.
Shifting Blame
Under California’s comparative fault system, your compensation is reduced by your percentage of fault. Insurance companies often try to shift as much blame as possible onto accident victims. Even a casual statement like “I didn’t see them coming” can be twisted to imply you weren’t paying attention.
Delay Tactics
Some insurers deliberately drag out the claims process, hoping you’ll become frustrated and accept a lower settlement just to resolve the matter. They may repeatedly request additional documentation, fail to return calls, or claim they need more time to investigate.
Lowball Offers
Initial settlement offers are almost always lower than what your claim is worth. Adjusters expect negotiation and start low to see if you know the true value of your case. Accepting a first offer typically means leaving money on the table.
What To Say (And Not Say) To Insurance Adjusters
Do:
- Provide basic identifying information (name, address, phone number)
- Confirm the date, time, and location of the accident
- Provide your insurance policy information
- State that you’re still receiving medical treatment and evaluating your injuries
- Refer questions to your attorney if you have one
Don’t:
- Admit fault or apologize for the accident
- Speculate about what happened or what caused the crash
- Discuss the specifics of your injuries in detail
- Agree to a recorded statement without legal advice
- Sign broad medical authorization forms
- Accept any settlement offer without careful evaluation
- Discuss your case on social media
A good rule of thumb: be polite and cooperative, but provide only the minimum information necessary. Anything you say can and will be used to reduce your claim.
Dealing With Your Own Insurance Company
Your own insurance company has a contractual duty to act in good faith. However, this doesn’t mean they won’t try to minimize payouts. When dealing with your insurer:
- Report the accident promptly as required by your policy
- Provide honest, accurate information
- Document all communications
- Keep copies of all paperwork
- Review settlement offers carefully before accepting
If your own insurer unreasonably denies your claim, delays payment, or offers far less than your policy provides, they may be acting in bad faith—which is actionable under California law.
Protecting Your Claim
Document Everything
Keep detailed records of all accident-related matters:
- Medical bills and records
- Repair estimates and invoices
- Correspondence with insurance companies
- Photos from the accident scene
- Witness contact information
For more guidance, see our page on what evidence you need for a personal injury claim.
Follow Your Treatment Plan
Attend all medical appointments and follow your doctor’s instructions. If you skip treatments or miss appointments, the insurance company will argue that your injuries aren’t serious or that you failed to mitigate your damages.
Don’t Rush To Settle
Never settle your claim before you’ve reached maximum medical improvement (MMI)—the point at which your condition has stabilized and your doctor can predict your long-term prognosis. Settling too early means you can’t recover compensation for future medical needs that arise later.
Know What Your Claim Is Worth
Understanding the value of your claim prevents you from accepting an inadequate settlement. Compensation should cover:
- All medical expenses (past and future)
- Lost wages and reduced earning capacity
- Property damage
- Pain and suffering
- Emotional distress
Learn more about economic vs. non-economic damages and how pain and suffering is calculated in California.
When To Involve An Attorney
Consider consulting a personal injury lawyer if:
- You suffered significant injuries
- The insurance company denies your claim
- The adjuster disputes liability or blames you
- You’re offered a settlement that seems too low
- The insurance company uses delay tactics
- You feel overwhelmed by the process
- Your claim involves multiple parties
An experienced attorney handles all communications with insurance companies, allowing you to focus on recovery. Studies consistently show that claimants with legal representation receive significantly higher settlements than those who negotiate alone.
For more information, see our guide on when to hire a personal injury lawyer.
Talk To A California Personal Injury Lawyer
Insurance companies have teams of adjusters, investigators, and lawyers working to minimize what they pay you. You deserve someone on your side who knows their tactics and can fight for fair compensation. Cohen Injury Law Group represents accident victims throughout Santa Monica, Beverly Hills, Malibu, and all of California.
Contact us today for a free consultation.