Unfortunately, sometimes, even with years of diligently paying premiums every month, when the time comes, and an accident occurs, you may expect your insurance company—or another person’s, if they are responsible—to come through for you. Much to your surprise, it doesn’t happen, and the company refuses to pay. Why does this happen?
They Are Not Your Friend
In some ways, insurance companies operate on a similar business model to casinos. Casinos will allow for an occasional win, especially to encourage visitors to keep gambling, but they only do this if the odds favor it. Statistically, to remain in business, many more visitors must be losing than those that win and receive a payout.
Insurance is the same way, but for different aspects of a person’s life. Home insurance, auto insurance, health insurance, and life insurance are all predicated on the idea that many more people pay their monthly premiums than require the insurance company to step in and provide compensation.
When someone comes into some misfortune that requires significant compensation to overcome an injury, loss of employment, or even death of a family member who was the “breadwinner,” the insurers may look at the amounts involved and deliberately seek to avoid paying.
How It Happens
Insurance companies have more than one way to avoid payments. While the most straightforward is outright refusing to pay, there are other tactics they employ. Delaying payment is one strategy, especially if there’s a statute of limitations when suing is still legal. If insurance companies can keeping promising to pay, but delaying that payment, if they “run out the clock” on the litigation time limit, they can safely refuse afterward with no legal consequences.
Another tactic is not to refuse outright but to pay much less than what an accident victim may be expecting. Insurance policies go up to a certain maximum, but insurance adjusters, or other investigators, may find conditions or loopholes within a policy that allows for a drastically reduced payout.
You Still Have Options
Even if an insurance company disagrees with you and claims the negligence you have been victimized by didn’t occur, this isn’t the end of the story. In the same way that an individual or company can be taken to court for negligence, insurance companies can also have their corporate verdicts contested.
In many cases, insurance companies rely on private individuals not having the commitment or legal resources to challenge their decisions, but you can get help. Contact a personal injury lawyer if you feel that an insurance company is not making a sound judgment about your injuries and compensation. You may be able to get that decision overturned with the right legal advocacy fighting for your rights..