In the face of an accident, insurance companies are meant to provide comfort, and give us all the support we need when we file an insurance claim. Instead, they look for dirty tricks they can use to deny our claims. Why? Because they're in the business to make money.
An investigation carried out by the American Association for Justice showed that insurance companies find any excuse to deny a claim—no matter how ridiculous it is. In another report, since 2011, insurance companies have earned $1.2 trillion in annual revenue and made $30 billion a year in pure profit thanks to insurance premiums.
Insurance companies know that the more money they pay when you file a claim, the less money they make. So they're ready to go to great lengths to make sure they don't pay you when you submit your claim. Some even reward their adjusters for coming up with all manner of devious tricks to reduce payouts to policyholders in the face of an accident.
If you feel your claim has been unfairly delayed or denied, we encourage you to contact our experienced Texas attorneys with the Voss Law Firm today. We'll fight for you to make sure your insurer doesn't deny your claim and your settlement is paid in full. And while most adjusters are good people, it is also important you know they work for a company and could come up with dirty tricks to deny your claims.
6 Dirty Tricks Insurance Companies Use To Deny Claims
1. They Try to Delay Your Claim
One trick that has worked so well for insurance companies is delaying the claims of policyholders when they file an accident claim. They know that people easily give up and forfeit their claims when dragged for too long. They'll put you off, ask for more paperwork, and come up with all kinds of excuses just to run out the clock on your patience. This is frustrating, especially when you've given them your hard-earned money for years and when you need them the most, they turn their backs on you and look for ways to deny your claim. Some insurers go as far as intentionally mailing the wrong forms to policyholders. Once the form gets filled in and mailed back, the company denies the claim and starts looking for other delay tactics they can use until it's too late to get the full benefit of the claim.
2. Deliberately Confusing Contract
Insurance companies know that not everyone reads their contracts before signing them. Even when they do, they don't understand it. It has gotten so bad that more than half of the states passed "Plain English" laws for consumer contracts. Unfortunately, these laws have done little to solve this problem, making it one of the most effective ways insurance companies use to deny claims. Insurers use confusing terminologies and deceptive euphemisms in their contracts to state anti-concurrent clauses and protect themselves from paying claims.
The anti-concurrent clause is a secret clause that is very common in home insurance policies. This clause became popular during the event of Hurricane Katrina. Many homeowners thought they were covered since they bought the hurricane deductible along with rain damage. But the anti-concurrent clause stated that flood damage wasn't covered.
Imagine a house getting flooded during a hurricane, damaging the walls, appliances, furniture and electronics. The insurance company might not validate the claim because the policyholder's home insurance does not cover flood damage claims.
3. Suggesting You Don't Need an Attorney
Many insurance companies are afraid of you involving an attorney because they're likely to pay more money on your claim if you hire one. So they suggest you don't need an attorney by taking responsibility for their actions and using words that make you think the process will be easy. They start asking questions and requesting more information from you all in a ploy to reduce the amount of money they're meant to pay you. Don't let it get to this point. Once you feel your claim is taking longer than expected, know that there's help available. By speaking with our insurance claim attorneys, you give yourself the best chance to recover and get the most out of the insurance you pay for.
4. Credit Score Discrimination
Insurance companies are beginning to use credit reports to determine the premium policyholders pay and whether they can be insured. This is not good for the poor and people with low credit. In fact, insurers have refused renewals to policyholders who minimize their use of credit cards, even though they pay their bills in cash and keep their debt profile low. Additionally, policyholders have seen their auto rate triple when they renew their policy despite having clean driving records. Auto insurers sadly believe that people with low credit are reckless drivers. They forget that all it takes is one financial crisis through no fault of your own to severely damage your credit.
5. Canceling Policy for a Phone Call
Policyholders are afraid to file a claim because of fear of increased premiums or having their policy cancelled. According to the American Association for Justice, insurance companies frequently refuse to renew policies after policyholders call the phone to inquire about making a claim. Many insurance companies usually count an inquiry over the phone as a claim even though the policyholder never filed an actual claim after the phone call. Then they do whatever it takes to drop the policyholder, which is really unfair.
6. Quick and Unreasonable Offers Immediately After an Accident
One of the first things many adjusters try to do immediately after an accident is to contact the policyholder pretty quickly to make an unreasonable offer. They do this because they know that, once you sign away your claims, there's no going back and you'll never get additional compensation for any future medical bills or car repairs. So you have to be ten steps ahead of them. Remember that adjusters are trained negotiators whose job is to protect the interests of the insurance company they work for. So they're ready to do whatever it takes to increase their company's bottom line, even if it means capitalizing on your pain.
When To Get An Attorney To Offer The Help You Need For An Insurance Claim
You don't have to be an attorney to file an insurance claim and get fully compensated for a loss by your insurance company. However, it can be frustrating when you have done everything right, followed every rule, and sent in all the right forms on time and yet your insurance company still plays dirty tricks to deny your claim.
That is why it is best to hire an attorney that will help you deal with your insurer and get the compensation you deserve when you feel your claim is being delayed or denied.
Contact Our Team of Experienced Attorneys
At Voss Law Firm, our accident insurance claim attorneys are so passionate about helping policyholders recover their claims. We quickly step into your case and we don't rest until you get every benefit you're entitled to. So, if you need help, or if you have questions about an accident insurance claim that has been denied, delayed, or underpaid, you can learn more today by reaching out to us at 1-888-614-7730.