Insurance Companies: Are You Really In Good Hands With Them?
Insurance companies advertise they are eager to help you after an
accident. They use slogans like “You’re in Good Hands,” “Like a Good
Neighbor” or “Fast, Fair & Friendly,” all to suggest they will
protect you and be helpful when you make a claim. But are insurance
companies really on your side? Consider these facts:
• Two employees of a major insurance company were forced to quit
after speaking out about illegal things the insurance company did.
They said the insurance company forced them to commit illegal acts
when handling car accident claims, including lying about facts and
misinforming policyholders about their rights.
• A pregnant Arizona woman was rear-ended by
another driver. She was taken to the emergency room and charged
$1700. The insurance company initially refused to pay her anything, even
though its investigation showed their policyholder was totally at
fault and the emergency room charges were fair. Only after two years
of delay did the woman finally get compensated.
• Each year, juries hold insurance companies liable for bad faith
conduct toward their own policyholders. In one recent case, a jury
awarded punitive damages against an insurer for coercing its
policyholder to settle a case, and then suing him for the amount of
the settlement.
• A man who suffered injuries when his car was rear-ended made a claim to
an insurance company without a lawyer’s help. The company refused to
pay him anything, saying he caused the accident. The man then hired a lawyer, who took the matter to court. A court
awarded the man money for his injuries, saying the other driver
caused the accident. The court awarded him additional money for
the bad way the insurance company handled his claim. Evidence showed
the insurance company knew the man was entitled to money (a company
memo admitted this), but employees who got rid of claims fast were
rewarded. In fact, the adjuster in this man’s case was promoted soon
after denying his claim. The evidence also showed that company
executives told employees to fight all claims, even valid ones.
• One well known nationwide insurer is the subject of court cases
over a practice of forging policyholder signatures on documents.
Despite what insurance companies promise when selling a policy, they
are not always fast, fair or friendly. You are not always “in good
hands.” That’s because insurance companies have an inherent conflict
with policyholders. Paying claims costs them money. The more “fair”
they are, the less money they make.
What does this mean to you? It means that after an accident you need
someone on your side who is experienced in dealing with insurance
companies and who knows how to get the maximum amount of money
without unnecessary delay. That person is your own lawyer. Even
though an insurance adjuster will try to persuade you not to use a
lawyer — saying a lawyer won’t help you or won’t get you more money
— the truth is that a lawyer will make recovering damages easier,
and will get you more money.
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