Month: December 2018

An honest and efficient insurance industry is essential for people to manage risks and make sure that valid injury claims from serious accidents are paid quickly. Without a quick and legitimate way of receiving compensation, people do not receive the compensation they deserve when they need it.

Unfortunately, the insurance industry regularly uses questionable tactics to keep from paying legitimate claims. San Diego injury accident lawyer tells of the tactics used by the insurance industry in this news report.

Insurance Companies Try to Increase Profits Through Questionable Tactics

Posted on Dec 20, 2009

A new free report from the American Association for Justice (AAJ), “Tricks of the Trade:  How Insurance Companies Deny, Delay, Confuse and Refuse”, tells how the insurance industry is increasingly using questionable tactics to increase their bottom lines at the expense of injured people and claimants.  This only harms the public who relies on an honest and efficient insurance system to compensate them for serious accidents.

The Report identifies the following common insurance company tricks:

1. Denying Claims:  This is the most common tactic and is regularly employed by all insurance companies, including Allstate, State Farm, and USAA.  By denying valid claims, the insurance companies boost their profits because those are monies that will not be paid out.  Insurance companies have even been known to incentivize their employees to deny valid claims.
2. Delaying until Death:  Insurance companies regularly delay claims in the hope that the claimant will die before the claim is paid or hoping that the injured person will give up or settle for less.  Many people do just that rather than stay the course.
3. Confusing People:  You are not alone if you have ever been confused after reading your insurance contract.  They even confuse lawyers.  Insurance companies regularly use confusing agreements and language to discourage consumers.
4. Discriminating by Credit Score:  Insurance companies determine premiums and insurance approvals based upon credit scores.  Lower scores pay higher premiums.
5. Abandoning the Sick:  Insurance policy holders who are the most need of medical care are often targeted by the insurance companies and have their benefits cancelled to lower the amount of money paid out for health care.
6. Cancelling for a Call:  Some people will call their insurance company to get a feel how filing a claim will affect their insurance coverage.  If the effect is too negative, they won’t file a claim.  However, just by making the call, the insured has essentially made a claim as far as the insurance company is concerned.  At renewal, the insurance company can use these phone inquiries to deny claims.