It might not come as a surprise, but Hawaii insurance companies are private, for-profit businesses. Their priority is not to help you — it is to protect their bottom line. This means that when you file a claim after a car accident or personal injury, the insurance company’s first instinct is to find ways to deny, delay, or minimize your payment.

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These companies often spend large sums on highly trained claims adjusters whose job is to protect the company’s interests. Unfortunately, that often comes at the expense of injured individuals like you.

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If you have been hurt in a Hawaii car accident, understanding the strategies insurance companies use is critical to protecting your claim. For a broader overview of the claims process, see our page on Hawaii auto accident claims.

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The Basics of No-Fault Insurance in Hawaii

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Hawaii is a no-fault insurance state. This means that after a motor vehicle accident, your own insurance company will pay your medical bills up to a certain limit, regardless of who was at fault. The minimum required amount of Personal Injury Protection (PIP) coverage in Hawaii is $10,000 for medical expenses.

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However, insurers are only required to pay for medical expenses they consider “reasonable” and “related” to the accident. These terms give insurance companies wide latitude to dispute bills. Adjusters often look for any reason to deny coverage for a treatment, arguing that it was unnecessary or unrelated to the crash.

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One of their key tactics is requesting a recorded statement very soon after the accident. This is not for your benefit; it is to lock you into statements before all your symptoms are apparent. For more on how to handle this step, visit our Hawaii personal injury lawyer page.

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Why Early Recorded Statements Are Risky

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Injuries like muscle strains, ligament damage, and whiplash can take 24 to 72 hours to fully develop. If you tell an adjuster on day one that you feel fine, they may later argue that any pain you develop afterward is unrelated to the accident. This tactic can significantly reduce your payout.

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Example:
Day 1: You say you only have mild neck soreness.
Day 3: You develop severe lower back pain.

Insurance position: That pain was not caused by the accident because you did not mention it in your statement.

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That is why we advise waiting before giving any recorded statement and preferably doing so only with an attorney present. Our guide on what to do after a car accident in Hawaii covers more post-accident best practices.

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Be Detailed and Specific in All Communications

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Insurance companies rely on technicalities. If you say “upper back pain,” they may refuse coverage for treatment to your mid back or lower back. If you say “pelvic pain,” they may deny treatment for your hip. This might sound unreasonable, but these situations occur frequently.

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When you give a statement or fill out forms:

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List every affected body part.
Use clear, medical-friendly descriptions.
Document any changes in symptoms.

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The more thorough you are, the harder it is for insurers to claim your injuries are unrelated.

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The Independent Medical Exam (IME) Trap

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If your treatment is extensive or ongoing, insurers may require an Independent Medical Exam (IME). Do not be fooled by the name — these exams are arranged and paid for by the insurance company, and the doctors they hire know that if they do not produce favorable reports for the insurer, they will not be hired again.

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Most IMEs conclude that:

You are fully recovered.
Your current treatment is unnecessary.
Your injuries were pre-existing.

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While there are honest examiners, they are the exception, not the rule. Having a car accident attorney in Honolulu advocate for you can make a major difference in how your medical needs are documented and defended.

 

The Importance of the PIP Application

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Your PIP application is just as important as your recorded statement. It must be completed before your insurer will begin paying benefits. If you fail to list an injury here, they may deny coverage for that injury later.

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Tips for completing your PIP application:

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Review it with your attorney before submitting.
Include every injury, even minor ones.
Attach supporting medical records if available.​

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Medical Liens in Hawaii Injury Cases

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If your health insurance pays for treatment after an accident, you might be surprised to learn that it can demand repayment from your settlement. This is common in Hawaii and applies to major insurers like HMSA, Kaiser, and HMAA.

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These insurers hire collection agencies to enforce medical liens, often placing them directly on your case. Once a lien is in place, the auto insurer will not release your settlement until the lien is resolved.

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Our attorneys negotiate aggressively to reduce lien amounts. If the lienholder has not formally notified the auto insurer, we can often secure reductions of up to one-third. For more details, refer to our medical lien reduction strategies in Hawaii resources.

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Super Liens and Government Program Liens

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Some liens are stronger than others.

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Med Quest liens must be reduced by one-third by law.
Medicaid, Medicare, and Tricare liens are federally protected and must be repaid.

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Each type has its own rules and negotiation processes. Navigating them without legal help can lead to paying far more than necessary.

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Additional Strategies For Handling Insurance Company Tactics

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In addition to delaying your recorded statement and being thorough in your documentation, there are other important steps you can take to protect your rights:

Get medical treatment immediately after the accident, even if you feel fine. This creates a record of your injuries.
Keep a daily journal of pain levels, mobility limitations, and missed workdays.
Do not sign medical release forms without reviewing them with your attorney.
Avoid discussing your case on social media. Insurance companies may monitor your accounts for statements or photos they can use against you.

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These actions may seem simple, but they can prevent the insurer from exploiting small details to undermine your claim.

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Real World Example of Insurance Tactics

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Consider this scenario.
A Honolulu driver is rear-ended and sustains neck and shoulder injuries. The insurance company:

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Requests a recorded statement on Day 1.
Denies coverage for shoulder treatment because it was not mentioned initially.
Orders an IME that claims ongoing treatment is unnecessary.
Refuses to settle until a health insurer’s lien is paid in full.

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With legal representation, the driver’s attorney delays the recorded statement, ensures all injuries are documented, challenges the IME findings, and negotiates a lien reduction. This results in a significantly larger net recovery.

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Frequently Asked Questions About Hawaii Insurance Claims

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Do I have to give a recorded statement to the insurance adjuster?
Yes, your policy usually requires cooperation, but you have the right to wait until you understand the full extent of your injuries and have spoken to an attorney.

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What if the insurance company denies part of my treatment?
You can appeal and provide supporting medical evidence. An experienced lawyer can help you challenge denials effectively.

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Can I change doctors if I am unhappy with my IME?
Yes, but the insurance company is not required to accept the opinion of your chosen doctor without question. That is why documentation and legal support are critical.

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Protecting Yourself Against Hawaii Insurance Company Tactics

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To safeguard your rights and maximize your claim:

Delay your recorded statement until you have a clear picture of your injuries.
Be exhaustive in injury descriptions on all forms and statements.
Get legal advice before an IME to prepare for insurer-friendly questioning.
Address medical liens strategically to avoid unnecessary deductions from your settlement.
Document everything, including medical visits, expenses, and communications with insurers.
Avoid making casual statements to adjusters, as they may be used against you later.

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Contact David W. Barlow, an experienced Hawaii car accident lawyer, to ensure your claim is handled correctly from the start.