Insurance companies are tough to handle because they hire employees that are sleazy and clever. Moreover, these employees are taught techniques that help them lure in customers and loot their money.
Top tricks played by insurance companies:
Most of you might be surprised, but it is a fact. These insurance companies can go to any extent to consume profits from the customers. Furthermore, these insurance companies earn by the benefit of risk. Accidents can happen and may not occur, and these insurance companies make when accidents do not occur. It is because they do not have to pay for any claim, and hence the premiums can be used for investment purposes to gain more and more profits.
However, there are specific tips and tricks applied by these insurance companies to lure in customers. These tips and tricks help them become more successful, and they end up havening millions of dollars in annual turnover. Some of the dirtiest tricks play by insurance companies such as auto insurance and health insurance is the following:
Immediate calls after getting into an accident:
It is true. These insurance companies will call once they get to know about the accident. The auto insurance companies will ask about the person you hit or harmed along with the insurance company. Furthermore, they will try to acquire information about the accident. Keep in mind that these senseless people would not care if the customers are still injured in the hospital. It makes the patient in a challenging position to make decisions, which is the primary goal of the insurance companies.
These insurance companies know that if the person had an accident, he will be in shock and won’t think properly. As a result, it is best to visit the customers while still in shock so that he makes a wrong decision and it comes out in favor of the insurance company. Due to these reasons, some insurance companies’ representatives tape the first-ever conversation with the person who got into the accident.
Who can use the tape recording later on for evidence purposes? Most of you might be in shock, but it is true. However, who should keep in mind that the wording you give to your insurance company is as important as the words you have with the other person’s insurance company. Therefore, you have to think and very carefully give the statements to them. Moreover, the representatives sent by the insurance companies are trained professionals.
They take individual courses with insurance companies and practice a lot. These representatives are taught what is called the insurance language. These representatives have years of experience in forcing the customers into making wrong decisions and misleading statements. Additionally, most people might be confused as to why they do such hideous acts.
The answer to this is that these insurance companies know only one: to maximize profits and minimize losses. Paying for the damage to the car is surf of a failure to their company. As a result, they will try their best to reduce their share of vehicle damage coverage to the customer. But there is no need to worry as it is recommended that people talk to an attorney before they have any conversation with the auto insurance companies.
A demand for statements:
After having an accident, the insurance companies will rush towards your hospital to take a statement from you. Do not get confused, as the information includes a few questions that have to be answered by the person who crashed the vehicle. These statements are critical, and they determine the amount of money paid to you by the auto insurance company. However, every citizen of the united states of America has their rights. As a result, you have the right to tell the auto insurance company to consult with an attorney before giving any statement.
Consultation with the attorney is vital as they know about all the auto insurance companies’ games. Moreover, the attorney can check the case’s facts in detail and provide the statement to the auto insurance company personally, or he may assist you in giving the information to the nature insurance company.
The blame game:
As mentioned before, auto insurance companies want to reduce their losses and maximize their profits, and they may go to an andy extent to do so. The auto insurance company may trick the customer by proving that they had some fault in the accident. Allow me to explain this using an example. For instance, a customer was driving his car on the freeway, and instantly an animal comes in front. The customer will try his best to save the vehicle from the animal and move it sideways. He might crash it into the tree. After you provide the statement to the auto insurance company, they may argue that damages could not be as severe if you could have turned left. As a result, they would pay a tiny amount in damages.
If you live in the state of new jersey in the united states of America, you might be well aware of this blame game. The auto insurance company will pay the customer very little coverage if they prove that the customer has some percentage of fault in the accident. For instance, if they calculate and take out that the person had 20 percent of respondents in the accident, the received money for losses would be significantly less.
Allow me to explain this using an example so that you can fully understand the whole concept. If the vehicle’s total cost is 500,000 dollars, the person involved will have to pay the most money if 20 percent of fault is detected. As a result, the auto insurance company will pay only 80 thousand dollars. Furthermore, these rates become very strict if more than 50 percent of fault is detected. For instance, if the auto insurance company can prove that the person had fifty-one percent fault in the accident, they would not pay him a penny. As a result, the person involved in that accident will have to pay for the damages.
Blaming everyone else for the fault:
The insurance companies will blame every other person for the fault, including you. However, they will not blame the other person in the accident if he also has insurance. It is a game played by auto insurance companies as every auto insurance company is linked with the other, and they help out each other in businesses. I will explain this using an example so that you have a better understanding of the whole concept.
For instance, if a car crashes into you while walking on the sidewalk, the insurance company will blame you or any other person for the fault. Still, they won’t even talk about the other person involved in the accident. There is a reason behind this. The reason is that these insurance companies protect each other by saving the coverage costs for each other.
Furthermore, it is considered as a return payment or a favor. One another auto insurance company falls in the same situation, the other insurance company won’t include it to protect it from paying from damages, and hence the favor is returned.
These auto insurance companies will argue from every angle ridiculous, but they won’t say a thing to the other person involved in the accident or their auto insurance company. They do this to ensure that you are at fault and pay most of the amount in damages.
Delaying claim payment:
Yes, it is true. After all the long process of acquiring the claim, the next step is taking the share from the auto insurance company. The auto insurance company will not give the money deserved back to the customer and delay it. There is no need to worry as the customers will receive their money, but it will be delayed. Now, most of you might be wondering about the reason behind this ridiculous act.
Allow me to explain the whole concept behind this. The money paid by the customers in the form of a premium is not added to the banks. These auto insurance companies do not act as savings account in the bank. The monthly premium paid will be utilized by the auto insurance company in multiplying their profits. It means that the money is not kept safe. These auto insurance companies will invest them in financial markets to gain a profit out of it.
Moreover, these auto insurance companies also keep the money in different banks to get interested from them. As mentioned before, auto insurance companies have one goal, and that is to maximize profits and reduce their losses significantly. The main idea behind this is that they will hold on to the claim money because as long as it is with them, they will make profits. Once the claim payment is returned, the auto companies will no longer gain profit from it.
These insurance companies will give you a hundred excuses as to why they are holding back your payment. Mostly they will say that the insurance company is going through losses and are trying their best to recover the costs. They also make an excuse such as demanding more details or information about the accident. Furthermore, they might also say that the investigation on the accident is currently in the process. These delays may be frustrating and can sometimes take weeks.
Some insurance companies cross limits, and they might give you a lesser amount of money than deserved by the client. Moreover, the client may also agree to a lesser amount of money, yet the insurance company plays another trick. The company will delay the payment so much that the client will agree to any insurance company’s revenues. Mostly, insurance companies will request you to pay for the damages, and they will return the money after a while. The cash is delated for a longer time or is not paid at all.
The money offered to the client will merely cover the health and damage costs. Clints should be proactive in dealing with such delays. However, the clients also can hire a lawyer and file a lawsuit against the insurance company. The insurance companies try their best to avoid any dirt over them. As a result, if you scare them by saying that who will file a lawsuit, they will pay your claim very easily and quickly.
Using algorithms and programs resulting in unfair values:
Technology is widespread in every corner of America’s united states, but the insurance companies misuse the power of technology, and hence the consequences are suffered by the clients. Every insurance company has their software and the software designed so that it provides a lesser amount of money to the clients. Furthermore, the client can not argue with insurance companies over this as the software have a fixed mechanism, and there can be no changes allowed in them.
The algorithms followed
By the auto insurance companies provide lesser claims to the customers even if they deserve more. Colossal is the name of the software used by almost every insurance company in the united states of America. Colossal is highly dependant on numerical values. It provides the clients a setback because the software’s values input is fixed and provides fewer claims to the insurance companies. Allow me to explain using an example so that you have a better understanding of the whole concept.
The injuries faced by a person in the accident will have to be converted to numerical values. There is a significant difference between physical injuries and numerical alternatives of those injuries. The same is the case with auto insurance companies. When the car is crashed, the damages are converted to numerical values that disadvantage the person as he receives a lesser amount of money while applying for a claim.
Tricking clients with a fast settlement offer:
After an accident, clients require urgent money, and it is easy for the insurance companies to trick the customers into having them settled for a much lesser deal. A few of these tactics include delaying the payment of the client. It makes the client wait so much that he is ready for any offer. However, the clients should see an attorney before taking the money to make sure if it is in the acceptable range or not.
Insurance companies trick clients not to hire a lawyer:
The only thing the insurance companies are afraid of is the law. It is the last thing the insurance company wants to get involved in. if the attorney is a professional in handling injury claim payments, there is a high chance that the insurance company will lose the lawsuit filed against them. Furthermore, the insurance company does not want to stain their reputation in the industry. As a result, they will try their best to make you not hire an attorney or a lawyer.
Hiring a lawyer has multiple benefits. One of those benefits is that the lawyer or the attorney will save the clients from unlawful payments and wrong statements that could lead them to trouble. However, clients should ensure that the lawyer is certified with Supreme Court as a Certified Civil Trial Attorney. This way, the client can identify if the layer or the attorney has ample experience in dealing with insurance cases.
Insurance companies do not explain coverage details:
Yes, they don’t, and the reason behind it is simple. Most people do not want to pay a higher amount of money to the clients. Most people do not know that they deserve more than what they receive. The insurance companies will hide all coverage limits unless a lawsuit is filed against them.
If the client faces many losses, the insurance company can pay for all of the losses. However, these insurance companies hide the clients’ payment limit so that they might not ask for more. Lawyers consider this fraudulent behavior, and clients have the right to take legal action against them.