Tactics Insurance Companies Use to Delay Payouts and Minimize Your Compensations
While the importance of having an insurance cover cannot be overstated, sometimes dealing with an insurance company can be hectic. It is hoped that any time you are involved in a car crash or any other incident that requires indemnification, your insurer should act swiftly and settle the claim as soon as possible. However, insurance companies have a multiplicity of sneaky tricks that they can use to ensure that you don’t get the kind of competition you deserve. Here are the most common insurance company tactics that you should know.
Advising You Not to Hire an Attorney
Lawyers will always try and push for as much compensation as possible and insurance companies know it. While insurance companies are not necessarily afraid of lawyers, they are better off dealing with ordinary clients who have limited knowledge of various laws and regulations. A regular customer is likely to take what he or she is offered in terms of compensation, thus saving the insurer some money.
Telling You that Your Policy Does Not Cover for the Damages
One of the insurance company tactics that is geared towards a lesser payout is the company’s notion that you are not aware of what the policy covers you for. Thus, the company will tell you that your damages are not covered under the policy and hope that you will take their word. It is, therefore, paramount that you read your insurance policy document carefully and understand the terms, condition, and exemptions. This will save you a lot of stress in the future in case of an accident.
Offering Initial Low Settlement
Insurance companies know that at the time of a loss, their customers are vulnerable and are likely to take any amount offered to you. Also, the insurance company will tend to take advantage of your ignorance for the laws and what should be paid by a standard policy. The company assumes that since you are desperate, you’ll accept whatever is offered.
Making You Sign the Forms and Statements
Another insurance company tactic used to delay compensation and minimize payouts is tricking you into signing the releases and forms that will lower the chances of getting compensated. Most of the time, the forms in question are written in a language that a layman can hardly comprehend. The language might be twisted in a way that the claimant accepts liability for the accident, thereby waiving his or her rights to get compensated. You are thus advised not to sign any forms given to you by the insurer without having them reviewed by a lawyer, more so after an accident has occurred.