Insurance companies may deny or delay claims to avoid paying out compensation. For example, they may argue that the policy doesn't cover the specific claim or that the claimant was at fault for the accident, making them ineligible for a settlement.
Others may offer a low settlement amount to claimants, hoping they will accept it and avoid pursuing legal action. Unfortunately, this tactic usually works because claimants are usually desperate for a settlement to cover rising bills and other expenses.
But the settlement amount is usually insufficient to cover the claimant's losses. Even worse is that once the claimant accepts the settlement and signs the release, they cannot file a new claim for the same incident, even if they discover later that they deserved better than what they received.
Some insurance carriers may also try to discredit the claimant by arguing that they exaggerated their injuries or that they have a pre-existing condition. All these claims may be false, but since most insurance providers are bullies, they tend to intimidate claimants to settle for less or nothing at all.
Shortly after the accident, the insurance company may also contact the policyholder to offer a quick settlement, hoping they will accept it without fully understanding their rights or the extent of their injuries. Sadly, since you may desperately need the money, you might accept the offer, not knowing the true value of your claim.
Lastly, some insurance companies may try to shift the blame onto the claimant, arguing that they were responsible for the accident or that they contributed to their injuries. And depending on the jurisdiction, this tactic might work for the insurance provider. For instance, Alabama, North Carolina, Virginia, and Maryland follow the contributory negligence legal principle, which bars claimants from recovering damages even if they were only one percent at fault for the accident. So, all the insurance company needs to do is prove that you contributed to the accident. And they may succeed if you lack the right legal team to represent you.