Some Facts That Insurance Companies Are Eager To Conceal
For people involved in car accidents, it can be an overtly traumatic experience resulting in needless losses and mental stress. Victims of an accident often look towards their insurance for compensation. Due to the numerous advertisements that insurance companies pay to broadcast, people have the misperception that insurance companies are humane organizations that want to help you out in your time of need, however this perception could not be further from the truth. The cold, hard reality is that the only thing which motivates an insurance company, much like any other commercial enterprise, is profit. Altruistic goals like helping society and seeking justice for people injured by the negligence of others do not play a role in the operational policies of insurance companies.
When an injured person reaches out to insurance companies or files a claim for their damages, insurance adjusters are trained to rely on the 3Ds of insurance claim negotiations. They are deny the claim, delay the claim and defend the claim. Insurance adjusters are generally able to effectively use the 3Ds because people are mostly unaware of the recovery process or they choose to negotiate their claim without being represented by an attorney who can properly navigate through this process. The process of negotiating a car accident claim with an adjuster is exceedingly complex, if you have a basic appreciation of the inner workings of insurance industry it can help you to ensure that you receive the maximum compensation for your losses and injuries.
Any person dealing with a personal injury claim will likely come into contact with an insurance company who represents the individual or business responsible for the incident. Although the realm of insurance negotiations may be a complex one, having an appreciation for some of the basic principles behind these large companies can help you ensure that you receive the maximum recovery possible for your incident. Although insurance companies lure us in with promises of quick resolutions to claims and savings they deliberately conceal important information such as how they really make money or the lengths they go to in order to protect their own interests instead of the customers’ interests. Some of the facts that the insurance companies want to keep secret are as follows:
The Primary Source of Profit For Insurance Companies Is Investment Rather Than Premiums
By having comprehension of how insurance companies make the majority of their profits helps reveal their true motives and thus the reason for their operational procedure. Consumers typically believe that premiums are the main source of an insurance company’s income but this is not true. After an insurance company collects the premiums from their customers, it puts the money to work in order to make additional profit. Investing the total amount of all the premiums collected in a bank for interest is the main source of income for insurance companies. This is why they are unwilling to part with a large compensation amount when paying a claim.
Insurance Companies Only Offer A Decent Settlement If You Have Hired Competent Legal Counsel
Insurance companies go the extra mile in trying to dissuade customers from seeking legal advice. Insurance adjusters are trained to discourage people from retaining legal counsel often making veiled or direct threats as a last resort. This is because of the fact that people that have retained competent legal counsel have always recovered more compensation in an auto accident claim. Insurance companies are highly wary of litigation therefore when they see an experienced litigation attorney negotiating on your behalf they are sure to make a settlement offer that is worthy of consideration in order to avoid litigation.
Insurance Companies Have A Lot To Gain By Delaying Your Legitimate Claim
If the insurance company is assured that you have a solid case and there is a great chance of your success if the case litigated, the insurance adjuster will employ any and all stalling tactics at their disposal to delay payment of the claim. Insurance companies never want a quick resolution when they recognize a claim as legitimate but as their money is invested and gains interest, it provides enough reason to try and delay payment of the claim for as long as possible even when they find it legitimate. However, there are times when an insurance adjuster will outright deny a legitimate claim in order to force litigation thereby delaying the process. It’s not very common but it does happen.
Insurance Adjusters Will Record All Conversations Even Settlement Negotiations And Use It Against You If The Claim Is Litigated
In addition to being good negotiators, insurance claims adjusters are trained be excellent negotiators, but they are also trained to record everything you say so that they can find any inconsistencies in your statements or sometimes they deliberately anger you and record you making a mistake like contradicting yourself, it could be used against you if the claim goes to trial.
If you or someone you love has been injured in a car accident, it is advisable to retain the services of an experienced Colorado Springs accident lawyer in order to protect your rights and get the compensation that is just.