Watch what you say to Insurers

`When I use a word,' Humpty Dumpty said, in rather a scornful tone, `it means just what I choose it to mean -- neither more nor less.'
`The question is,' said Alice, `whether you can make words mean so many different things.'
`The question is,' said Humpty Dumpty, `which is to be master -- that's all.'
- Through the Looking Glass, by Lewis Carroll

MSN MoneyCentral has a great article called 5 things never to tell your insurer. They start the article pointing out that it is a criminal offense, fraud, to lie to your insurer. But the truth can go horribly wrong when the wrong words are used.

For example when your hot water heater breaks you might say your basement is flooded with water. But the word, “flood”, is a red flag for insurers – most policies do not cover flood damage. Fortunately insurers have a very specific definition for “flood” - water overflowing from a nearby lake, stream, river or other body of water. So with a pipe leak you have “water damage”, not “flood”.

Never say "experimental", "investigational" or "clinical trial" when you need a medical treatment that isn't a common practice. Just because it isn't common practice doesn't mean these insurance rejection terms apply to it. Mark O. Hiepler, a California attorney, advises clients to always say, 'It's medically necessary,' when referring to treatment. Also avoid the term “whiplash”. This is another red flag because of the many fake whiplash claims. Wait for a medical diagnoses and use only the terms in the doctor’s report.

Never guess or give an opinion in an accident. Just report the facts, don’t elaborate or estimate details like how fast the other car was moving. Did you measure the distance with tape? Did you look at your speedometer just before impact so you know exactly your speed? Your guess, if wrong, could harm your credibility and your claim. An insurer will ask and ask again for exact details like distance and speed that you cannot know with certainty. They are hoping you’ll give them an excuse to reject the claim. Suppose you say a car 40 feet ahead slammed on its brakes without warning and you hit it. The insurer might claim you had sufficient safe stopped distance so the fault is yours. Or they might decide you were tailgating and again the fault is yours.

Bottom Line

In most car accident aftermaths, all the facts are not immediately known. Don’t assume it’s your fault. Words like “I’m sorry” can be used against you as an assumption of fault. If you're not sure about how something happened, let the authorities and insurance companies figure it out. Ask your insurer about how you should respond to the other party’s insurer if they should call.

Stick to business and don’t get into “friendly” conversations with your insurer or a third party insurer. Your every word is recorded and will be used against you.