Deny, Delay, Confuse & Refuse: How Insurance Companies Do It

by | Feb 6, 2023

The insurance industry plays a critical role in the financial well-being of individuals and businesses alike, providing protection against unforeseen events and losses. However, there have been accusations of the insurance industry attempting to make money at the expense of consumers. 

It is important for consumers to be aware of these potential issues so that they can make informed decisions about their insurance coverage. In this guide, we explore a common strategy used in the trade: Deny, Delay, Confuse & Refuse.

Deny Claims

Denying claims is a common practice used by insurance companies in order to reduce their costs and liabilities. Insurance companies often use a tactic known as “deny, delay, confuse, and refuse” in order to deny claims. 

They may deny claims by providing incorrect information, refusing to answer questions, or using other tactics to delay, confuse and refuse a claim. This practice can be very frustrating for policyholders and can lead to costly legal fees and delays in receiving the compensation they are entitled to.

Delay as Much as Possible

By delaying the process, insurance companies can use the time to investigate and find reasons to deny or reduce the amount of the claim. 

They may also use the delay to confuse the policyholder and wear them down so that they give up their claim. This tactic is unethical and can cause a lot of distress for policyholders and their families.

Confuse Insurance Holders

Insurance companies often use tactics such as denying, delaying, confusing and refusing to confuse insurance holders in order to avoid paying out on claims. 

For example, they may deny a claim on the grounds that the policyholder failed to provide the necessary documentation, delay the processing of the claim to buy time and reduce the chances of payment, or confuse the policyholder with technical language. 

In some cases, they may even refuse to honor the claim outright. All of these tactics are designed to increase their profits and reduce the amount they have to pay out in claims.

Refuse Through Discrimination Credit Score

Refusing through discrimination credit score is a tactic used by insurance companies to deny or delay coverage for certain individuals. This tactic relies on an individual’s credit score as a way of determining eligibility for insurance coverage. 

Insurance companies may use this tactic to discriminate against individuals with lower credit scores, potentially leading to higher rates or even denied coverage. 

This tactic can be particularly damaging to those who are already economically disadvantaged, as it can further limit their access to insurance coverage and lead to higher costs.

What You Can Do to Protect Yourself

Protecting yourself from insurance companies is essential in making sure you get the coverage you are entitled to. It is important to understand the details of your insurance policy and what is covered. In the event your insurance company denies a claim, you should be familiar with the appeals process and how to effectively submit an appeal.

Contacting your insurer can be a difficult task, and it’s important to document all your conversations, bills and other forms of communication for future reference. 

Verbal statements made by a representative may not be reliable, so be sure to keep track of every document you exchange.


Insurance companies can be difficult to deal with, but it is important to understand your rights and the appeals process in order to protect yourself. By being an informed consumer, you can ensure you get the coverage you are entitled to.

Know your rights by talking to an insurance claims denial lawyer today.  Santa Rosa Personal Injury Lawyer has a capable team ready to help you get the claims you need. Get in touch with us today to learn how.

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