We’ve all heard those horror stories about insurance companies being untrustworthy, right? Being unreachable when you need to speak to them, having hidden or over-complicated clauses, or simply not getting back to you at all. We all rely on insurance to protect us when things go wrong- but what happens when they’re simply nowhere to be seen when you need them most?
As a team of experienced attorneys, we’ve heard many different experiences when it comes to tactics insurance companies try so we’ve decided to share them with you too!
Get clued up on the sneaky tactics insurers try
Many insurers make it intentionally difficult to file claims- and sadly, it gets worse. This kind of experience isn’t an exception to the rule, but a very common occurrence with insurers having a ‘profit over policy’ approach, often looking for ways to deny payouts to policyholders.
Holding back on payouts
As an industry, insurance made a whopping $360 billion in profits in the US, in 2019, so it’s fair to say they can afford the payout you may be chasing. However, many insurers make it intentionally difficult to file claims- and sadly, it’s more common than you think. This kind of experience is a very common occurrence with insurers having a ‘profit over policy’ approach, often looking for ways to deny payouts to policyholders who have made a claim.
Delaying payouts until you give up
After refusing to pay up, insurers are also rather good at delaying payouts after an accident, sadly often with the mindset that you’ll simply give up chasing if they withhold it long enough. Wrong! If you feel the insurer may be delaying your payout- seek legal advice straight away. You’re entitled to compensation if you’ve been involved in an accident, so make sure they don’t get away with delaying anything.
Using your credit rating to offer a premium
You may not be aware but insurance companies have started using credit reports to determine whether policyholders can be insured and to set premiums. This practice immediately penalizes people on lower incomes or with a low credit rating and means insurers are creating higher premiums for people who are careful with their money.
Causing delays in legal claims
When you’re a victim of an auto accident that wasn’t your fault, the last thing you want to do is then take on an insurance company that is trying to withhold the compensation you deserve- especially if the accident was down to their policyholder, not you. If your case goes to court and a judge deems in favor of your case- it’s their responsibility to pay up. In the state of Arizona, there’s something called a Bad Faith Law that ensures insurers work in good faith with their policyholders and if they’re in breach of this, our helpful attorneys will pull them up.
We’ve written previously about other sneak tactics insurance companies try to help inform you of your rights when handling these corporate companies. As always, our helpful team is on hand if you want to speak to an experienced lawyer today to discuss any issues you may have with an insurance claim. Simply call us on (480) 634-7480 and find out how we could help you.