Are Insurance Companies Looking out for Your Best Interests?
Whenever you deal with an insurance company, you may get the impression that they are looking out for you. However, most of the time, this perception is not accurate. Insurance companies are interested in their bottom lines, and paying claims in full affects their profits adversely. So, while you should know what to watch out for when looking for insurance, it is equally important to understand how insurance companies work before you file a claim. Remember that in most cases, insurance companies will never be looking out for your best interests.
1) How does your insurance company maximize its profits?
An insurance company is in business to generate money and earn a profit. They use sophisticated mathematical models to determine the probability and risk of you making a claim in the future. For example, the premium for your car insurance is determined by your age, location, and driving record, among other factors. If your insurance company feels that there is a greater risk of you seeking a claim, they’ll charge you a greater premium amount to issue you insurance. An insurance company aims to maximize its profits by selling its policies to as many customers as possible and paying the least amount of money to claimants. In such a scenario, if you ever need to make an insurance claim, you should always consult an experienced company such as the Hughey Law Firm. Doing so will ensure you have the best chances of getting appropriate compensation for your claim.
2) A claim adjuster will try to win you over by friendliness
Insurance companies know that the act of you filing a claim implies that you’ve suffered some kind of an injury or loss. As a result, they train their claim adjusters to treat victims with respect. On occasion, a claim adjuster will try to win you over by friendliness so that you start trusting them. They may use negative tactics, some of which could be offering you a quick settlement or advising you not to see a doctor. However, you should keep in mind that the motive behind being over-friendly is to lull your suspicions, with the objective being paying you as low a claim amount (if at all). As an alternative, you may hire an independent or public adjuster to advocate for a fair compensation on your claim.
3) An insurance company may try to take the advantage of you not being aware of your rights
Accident victims may not be knowledgeable or experienced enough to seek compensation from an insurance company. The representative from the company will definitely be more experienced and knowledgeable about the claim process compared to you if you’re a layman. Furthermore, you may not know all your rights when it comes to insurance claims. As a result, the representative may try to take advantage of you and portray themselves as authorities on the claim process. Be careful since such posturing may mislead you and guide you down a different route when making an insurance claim. As a result, you may lose out on getting an appropriate compensation amount.
4) Claim adjusters may try to minimize the severity of your injury
Claim adjusters frequently classify a severe injury as a minor one and a disablement as non-catastrophic in nature. Keep in mind that injury classification directly impacts the compensation amount that you’ll get and any long-term payments for medical care and rehabilitation. By downgrading the seriousness of your injury, the insurance company may be in a position to deny financial support for your medical expenses.
In Summary
Insurance companies will, in most cases, not be looking out for your best interests since their interests will be served by not paying the claim amount. It is always advisable for you to contact an experienced lawyer who can guide you during the process of filing your insurance claim. You should also know how to appeal an insurance company’s decision if you are dissatisfied with it.