The chances are you have heard of people having a bad experience with an insurance company after their policyholder caused an accident. Unfortunately, this is more common than you may believe.
An insurer can make it challenging to get the compensation you deserve because that’s how this business type works. Here’s what to keep in mind:
Payouts equal financial losses
Insurance companies make money from charging premiums and investing them in assets. Policyholders are protected from different types of risks, which means they will be covered should anything included in their policy happen. Every payout the company makes, however, lowers the company’s overall profits. This makes the companies highly reluctant to pay out anything. The claims adjuster’s entire job is to mitigate the insurer’s losses, not compensate people for their losses.
They have a variety of tricks
Insurers use different tricks to avoid compensating those injured by their policyholders. One of the tactics they can use is denying a claim for superficial reasons. An insurer may look for anything that indicates their policyholder was not responsible for the accident. For instance, they may ask to speak with you, assessing every statement you say to find something that can put fault on you.
Another trick companies use is paying an overly quick settlement. They may want to give you an offer very fast – before you understand the extent of your injuries and the potential impact of the accident. Further, some companies delay processing claims, hoping you may settle for less to get the case over with or give up altogether.
How insurance companies work makes it difficult for them to give payouts. It is always wise to get legal help to protect your rights.