Injury Victims Get The Shaft While Insurance Companies Get Rich

A new report from the American Association of Justice (AAJ), "Tricks of the Trade: How Insurance Companies Deny, Delay, Confuse and Refuse." details how insurance companies use policies and practices that put profits over people.  You have been a loyal customer of your car/health insurance company for many years, but the minute you file a claim how will you be treated?  Below is a list of common tactics you can expect to confront when you are an injury victim seeking payment from a car insurance company.

1.   Deny Claims:  This is the most common tactic and regularly used by all insurance companies, including Allstate, Farmers and State Farm.  Denying claims allows insurance companies to up their bottom line by holding on to their money as long as possible.  Some insurance companies have gone as far as putting incentives in place for employees who successfully deny valid claims.

2.   Delay Until Death:  Many insurance companies deny a valid claim hoping the injured victim will die before it has to pay, or become frustrated and give up or settle for less.  Injury victims need to be patience, confident and strong willed to fight such tactics.

3.   Confuse Customers:  Ever looked at your insurance policy contract and come away utterly confused, you're not alone.  Attorneys find them confusing at times.  Insurance companies use dense and complicated language to confuse and discourage their customers.

4.   Discriminating by Credit Score:  More and more insurance companies use your credit score to determine the amount you pay each month.  Lower credit score = higher monthly premium.

5.   Abandoning the Sick:  Health insurance companies cut costs by canceling policies of people with illnesses that have become too expensive to treat.  This targets patients when they are most vulnerable and at need.  Companies have gone as far as to target cancer patients for cancellation.  Some companies even offer employee bonuses for meeting "cancellation goals."

6.   Canceling for Asking a Question:  Many people call their insurance company and ask if making a small claim will raise their insurance rates without actually making the claim.  However, just the asking the question is enough to raise your rates later.  The insurance companies don't care whether you made a claim, but that there was a potentially claim.  At renewal time you can find a rate increase or even cancellation.

Be sure to protect yourself by doing your insurance policy homework and download a copy of our FREE guide, The Guide To Buying Car Insurance In Washington.