A Brief Guide About How Insurance Companies Process
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What motivates an Insurance Company to pay your insurance claim? Why are Insurance Companies so tricky? Does it seem like they are making excuses and doing everything in their power to give you the runaround? The first thing you need to know is what motivates car insurance companies — indeed profits.
Insurance Companies are in the business to make money. This is their sole mission and purpose. They prefer to deny claims altogether or delay making payments as long as possible, or they try to reduce the debts they owe. Insurance companies will push their profits ahead of paying claims as far as they can before they get in trouble for unfair business practices. The proverbial carrot motivates some people. They seek pleasure from things like helping other people. While the proverbial stick drives others. They respond best to threats of loss or harm to motivate them to take action.
The 3 D’s Process of Insurance Companies
There are process insurance companies use, and I call it “The 3 D’s.” Knowing the 3 D’s of Insurance Company Tactics will help you understand the processes and protect your rights. The Insurance Mantra is:
1- Deny the Claim
2- Delay the Claim
3- Defend the Claim
#1- Deny the Claim
First, an Insurance Company May “Deny” any Responsibility for your losses. Quite commonly after a crash when you call the at-fault driver’s insurance company, you may get the runaround. Even when a fault is obvious, such as when you are hit from behind. The adjuster might tell you they deny liability until they get some information from their insured. They will say, “well, we have not been able to contact our insured to get any information. Therefore, we won’t look at your car, or consider your injury claim.” Alternatively, they demand a recorded statement from you before they will do anything. Alternatively, their first response may be to tell you to take a hike, and they are not going to pay a penny.
We talk with our client and decide if we should file suit now. If the liability is apparent, why wait? Waiting around for the insurance company to do something is a bad plan of action. Why not file a lawsuit immediately and get the ball rolling. After all, once a lawsuit is filed, we get to take a formal statement from the at-fault driver under oath by taking their deposition.
#2- Delay the Claim
The Second “D” is “Delay” – an Insurance Company will “Delay” the Claim. If you try to settle your claim by your own and you ask the adjuster to make you an offer, they will usually reply that they need more information.
When an insurance company refuses to pay, they will start delaying your claim, hoping you will give up. They love to ask the injured person to run all around and collect tons of documents for them that they don’t really need to make you an offer. Moreover, when you provide them with what they ask for, they say thank you and then ask for something else. Then when you give them that item, they want another thing. They are always asking for more stuff from you. By giving you the runaround, the insurance company buys its time. They also create frustration and aggravation on your part by asking you for ridiculous things to keep you busy while they collect interest or make more profits on your money.
#3- Defend the Claim
The third “D” stands for “Defend” – Once a Suit is Filed, Insurance Companies Fight Hard to Defend the Claim.
They fight hard not to pay your claim. Most insurance companies, at least the common car insurance companies have their own “in house” law firms to defend these claims. They set up a law firm, and hire attorneys to work for them,
Why do they do this? Again to save money and make more profits. Over the years they felt like they were spending too much money by hiring independent attorneys to defend your case vigorously. Therefore, they decided to start their own law firms and hire employees.
And most everyone knows you don’t look at a car to see if a person is injured, you look at the person. The insurance company might also hire a team of surveillance people to try and catch you doing something you should not be doing. They will look at your Facebook page and try to find things that might indicate you are not hurt from this accident. The bottom line is that the insurance company may defend your case through a jury trial, and sometimes beyond that into appeals because all they want to do is to hold onto your money as long as they can so they can maximize their profits. Therefore, it is essential to make sure that you avail as many car insurance quotes Online to make the wisest choosing decision.
Also, find a lawyer who can communicate effectively to the jury. Believe it or not, the attorney you hire can make a big difference in how much your case is worth. As well as how fast you will be paid. By utilizing an attorney who is board certified and one who has a track record of trying cases you improve the chances of reaching a settlement and avoiding a trial. If you have any more questions about what to do when an insurance company refuses to pay.