Insurance is big business in the United States, with companies making $30 billion in profits a year. While you might believe that you are investing in your long-term security, it is just as likely that your insurance company is plotting against you. Whether you are filing a car insurance claim, health care insurance claim, or against a homeowners’ insurance policy, remember that insurance carriers have a business designed to avoid payouts, even on legitimate claims. This can be especially frustrating if you have been in an accident with an uninsured motorist — as you may face another uphill battle with your own insurance company.
To achieve the best results with your car insurance claim, it is important to have a clear understanding of your rights. Our car accidents attorneys in Quincy understand the frustrations faced by our clients. In most cases, compensation is not only expected, but it is necessary. Whether you are looking to cover medical costs or recover compensation for a totaled vehicle, you need to be aware of your rights. The following is a summary of an analysis provided by a consumer rights group dedicated to keeping consumers aware of common tricks used by insurance companies to avoid paying out claims.
The same companies that have spent millions in advertising to gain your trust are the same ones that will take your case to court to avoid paying out. There are a number of tricks used by insurance companies, but if you can be aware, you can best protect your right to collect on a claim. Here are a few common strategies used by even the most reputed insurance carriers:
Claim denial: The best way for an insurance company to make money is to simply deny a claim outright. While they may give you a reason for the underlying denial, you should have your claim reviewed by an experienced advocate. Many of these claims will be outright denied, even if they are valid. Some companies even reward employees who have denied the most claims. In the most egregious cases, the employees and company have engaged in fraud to avoid pay-out.
Confusion: Many of these companies will use confusing and dense contracts with clauses and caveats that the average consumer will not understand or even notice when purchasing insurance. Policyholders will often think they are covered until they file a claim and the insurance carrier points to a vague and confusing phrase that amounts to outright denial.
Delay until death: By initially and routinely denying all claims, insurance carriers can post-pone the ultimate payout, keeping money until the policyholder gives up. Some of these carriers have been known to take advantage of a policyholder’s age and health, continuing to deny claims until the policyholder passes away.
In addition to these tactics, insurance carriers may also discriminate based on a credit score, cancel your policy because of an inquiry, or take another underhanded route to challenge your claim. The best way to protect yourself is to have a clear understanding of your policy and your rights. If you are involved in an accident, do not settle your claim or reveal the details of your case with your insurance carrier without consulting with an attorney.
If you were involved in a Boston car accident, contact Jeffrey S. Glassman for a free and confidential appointment to discuss your rights. Call (617) 777-7777.
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