It’s your insurance company pushing you to get a recorded statement.

Why a Recorded Statement? Why are they after this so badly? The answer might surprise you.

Why a recorded statement?

This question is very interesting… 95% of the claims in any given insurance company settle out of court. Out of those 5% left, only 1% or less will ever have the statement come into the court room.

The reason for this is the Rules of Evidence. The recorded statement becomes evidence, and therefore it is governed by the Rules of Evidence. Any attorney will tell you that being able to listen or to read a recorded statement that was obtained over the phone could be a major legal battle, a legal battle that only few attorneys and/or insurance companies win. You are giving a recorded statement without being represented, an interrogation without protection. The law will protect you to a certain point. So why do they try so hard to acquire a recorded statement from the parties involved if this statement will never make it into a court of law? Why a recorded statment? I believe that it is for two important reasons:

1. If the case ever goes to arbitration, the panel of arbitrators (glorified claim adjusters) will look for the recorded statement. Most of them place huge important in the testimony of the parties involved.

As mentioned before, in many cases, arbitrators will decide the fate of a claim based solely in which claim adjuster had better documentation. This is not the way it should be, but it happens everyday. Insurance companies are in arbitration everyday, and they know that loosing too many arbitration decisions could be worse financially than losing few cases. This is the number one reason why insurance companies will be desperate to get that recording. The one reason why a recorded statement is needed is becuase your insurance is preparing for an arbitration dispute, not a court of law.

2. The psychological aspect. If you have a dispute with someone, would it not be great if you can just look at a piece of paper to see what the actual terms were? But if that document does not exist, a more effective way (in my opinion) is an actual recording. This makes the why a recorded statement pretty obvious. It is a matter of power. When you have the power to say “I have you in a recording saying that the light was red and that it is your fault”, then you seem to have a lot of bargaining power over someone. It is like that someone has confessed of being guilty to a crime. Many people get crushed because of what is said or they thought they said in a recorded statement.

Ok, now that you know why a recorded statement will necessary, you can evaluate if you will give one or not.

If after reading everything in these pages regarding statements, you decide to give your own insurance company a recorded statement without the presence of an attorney. The following links will explain the best way to approach the recorded statements to protect your interest.

Now that you know why a recorded statement will be requested from you, learn how to prepare for one. What to do before the statement.

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