10 Things Insurance Companies
Don’t Want You to Know

The average consumer is at a disadvantage when it comes to dealing with insurance companies. We tend to assume that insurance companies will step up to the plate when an accident happens, and come through with a comforting payment.

But from the insurance company’s point of view, money paid to a policy holder is money the company can’t invest. Insurance companies make their money from investing. So they employ armies of attorneys to help them keep their cash, and train their adjusters in ways to persuade us to accept low settlements.

Here are some good items to think about.

1. Many policy holders are not very familiar with the exact coverage they have. Most of us don’t read the small print. We don’t know what exceptions there may be, or what restrictions. Insurance companies make the most of that situation and hope we never do read that fine print.

2. In some instances, the fine print is written in a deliberately obscure way, to hide exceptions or restrictions.

3. If you buy your insurance policy from an insurance agent, it may sound wonderful and beneficial. The agent may not know exactly what will be in it, because agents are trained to sell insurance, not to explain it. So you pay for it, and later when the policy itself arrives, you may not read it, thinking that the agent has told you what’s in it. When an accident happens, you may have a nasty surprise.

4. Insurance paperwork is deliberately convoluted. It’s designed that way so that claims submissions can be easily and frequently rejected for having “missing information”, or for “failing to follow the correct procedures”.

5. The insurance adjuster who comes to see you after your accident is not paid to give you a generous settlement amount. He’s paid to give you a small one. Failing to keep your payout small will jeopardize his career.

6. Insurance law requires insurance companies to act in good faith as to interpreting your policy, including the provisions that cover payouts.

7. If there is unclear language in your policy, the courts are required to interpret it in your favor.

8. Delay is a popular strategy with insurance companies. The longer they can postpone the payout, the longer they can earn interest on the money. They hope you’ll become impatient and accept their low offer.

9. Delay offers another advantage to the insurance company. If it goes on long enough, your statute of limitations may run out.

10. Insurance companies found guilty of using unfair practices can be forced to pay claimants additional damages called punitive damages.

An experienced accident lawyer can help you interpret your policy and understand it, and help you deal with the insurance company and its lawyers.