Insurance companies use specific dispute tactics to delay, deny, and devalue valid claims. According to the National Association of Insurance Commissioners (NAIC), consumers file thousands of complaints about insurer behavior each year. By knowing the common insurance dispute tactics and how to fight back, you can take the first step toward protecting their rights.
The Most Common Insurance Dispute Tactics
Insurance companies will delay, deny, or defend offers to minimize payouts on valid claims. Our insurance disputes team has seen every one of these tactics. We know how to push back.
Common Tactics Used by Insurance Companies
| Insurance Company Tactic | What It Looks Like |
|---|---|
| Delay | Ignoring calls and emails, and requesting unnecessary documentation |
| Lowball settlements | Offering a fraction of the claim’s value, often quickly after filing |
| Liability disputes | Arguing that the claimant was at fault or contributed to the accident |
| Recorded statements | Pressuring claimants to give statements that can be twisted later |
| Blanket medical authorizations | Asking for unlimited access to all medical records, even unrelated ones |
| Surveillance and social media | Watching for inconsistencies in claims of injury or damage |
| Disputing medical necessity | Claiming treatment was excessive, experimental, or unrelated |
| Biased medical exams | Sending claimants to “independent” doctors who downplay injuries |
| Misrepresenting policy language | Quoting complex policy terms out of context |
| Pre-existing condition arguments | Blaming injuries on prior conditions |
How to Recognize Bad Faith Insurance Conduct
When an insurance company crosses the line from aggressive negotiation to bad faith, the law provides additional remedies.
Understanding “Bad Faith” Insurance
“Bad faith” is when an insurer unreasonably denies, delays, or underpays a valid claim. It’s more than disagreement over the value of a claim. Instead, it violates the insurer’s duty to act in good faith. Common bad faith conduct typically includes the following behaviors:
- Denying a claim without conducting a reasonable investigation
- Failing to provide a written explanation for denial
- Misrepresenting policy provisions or coverage
- Delaying payment without a reasonable basis
- Making lowball offers far below the claim’s true value
- Pressuring claimants to accept inadequate settlements
A “bad faith” claim can entitle the policyholder to different types of compensation, like the original claim amount. Someone could also receive attorney’s fees, emotional distress damages, or punitive damages.
Most states have statutes, often called Unfair Claims Settlement Practices Acts, that prohibit specific bad faith conduct. State insurance departments can investigate complaints. Policyholders can file lawsuits. Our bad faith insurance team handles these cases.
What You Should Do When an Insurance Company Uses These Tactics
Did you know that you can take specific steps to protect your claim? You can do this even before hiring a lawyer.
- Document everything. Keep a detailed log of every communication with the insurance company.
- Request explanations in writing. Ask the insurer to provide written reasons for delays, denials, or settlement offers. Unfortunately, verbal explanations are easy to deny later.
- Don’t give recorded statements without consulting with an attorney. You never know what the insurance company may use against you later.
- Read the coverage, exclusions, and procedural requirements of your policy. Many disputes rely on specific policy language.
- Meet all deadlines. Insurance policies and state laws have strict deadlines for filing claims, providing documentation, and appealing denials.
- File a complaint. State insurance departments accept consumer complaints. The NAIC provides a portal that directs consumers to the appropriate state agency.
Many state insurance departments overturn improper denials after a complaint is filed. State complaint processes are often free. They can also trigger the insurer’s investigation of the claim.
When You Should Hire a Lawyer to Fight an Insurance Dispute
Hiring an experienced attorney often levels the playing field with insurance companies. An experienced insurance dispute attorney evaluates your claim. Then, they identify bad faith conduct, gather evidence, negotiate, and files a lawsuit when necessary.
Insurance companies know that attorneys understand their tactics. Do you know when you need to consult an attorney? If you’re experiencing any of these situations, you may need legal assistance.
- The insurance company denied your claim entirely
- The settlement offer is far below your actual damages
- The insurer is delaying without explanation
- You suspect bad faith conduct
- The case involves catastrophic injuries or major property damage
- The policy language is unclear
- You’re feeling pressured to settle quickly
Don’t let finances keep you from high-quality legal representation. Most plaintiff-side firms, including Alexander Shunnarah Trial Attorneys, work on contingency. You only pay if we win a settlement or verdict for you.
Common Questions About Insurance Disputes
What are the most common insurance dispute tactics?
The most common insurance dispute tactics include denials, lowball settlements, and liability disputes. They may even go so far as to demand excessive documentation and monitor your social media accounts. Many insurance companies follow a “Delay, Deny, Defend” strategy to wear you down.
What is bad faith insurance?
Bad faith is when an insurance company unreasonably denies, delays, or underpays a valid claim. Most states recognize bad faith claims when insurers violate their duty to act in good faith. Examples include misrepresenting a policy or denying without reason.
Should I give a recorded statement to the insurance company?
No, you shouldn’t speak to an insurance company before consulting an attorney. Insurance adjusters ask questions to twist the truth later. The best thing you can do is to meet with an experienced attorney.
How do I respond to insurance dispute tactics?
Responding to insurance disputes may be overwhelming, but there are steps you can take. Document every communication in writing, and always request written explanations. Read your policy, meet all deadlines, and file a complaint with your state insurance department. One of the most important things you can do is to consult with an experienced attorney.
Can I file a complaint about my insurance company?
Yes. Every state has an insurance department that accepts consumer complaints about insurance company conduct. The National Association of Insurance Commissioners (NAIC) provides a consumer portal that directs consumers to the appropriate state agency. Complaints can trigger investigations into improper claims handling, misrepresentation, and bad faith conduct.
What does an insurance dispute attorney cost?
Most plaintiff-side firms, including Alexander Shunnarah Trial Attorneys, work on a contingency fee basis. You only pay if we win a settlement or verdict in your favor. Plus, your first meeting is free.
Trust Alexander Shunnarah Trial Attorneys Today
Delay, deny, defend, devalue… These tactics wear claimants down to reduce payouts. Documentation, persistence, and experienced legal representation help level the playing field. Trust Alexander Shunnarah Trial Attorneys to fight for you.
We handle insurance disputes and bad faith claims nationwide. Schedule a free case review today.
Reviewed by Alexander Shunnarah, Attorney and Chief Executive Officer at Alexander Shunnarah Trial Attorneys on 2026-06-26.
