Are Insurance Companies Really on Your Side?

When you file an insurance claim, you might expect the process to be straightforward and the outcome to be fair. After all, insurance companies are there to protect you when the unexpected happens, right? Unfortunately, the reality is often much more complex and disappointing, especially if you’re not equipped with the knowledge and support needed to navigate the claims process.

At Maurer Law, we want to help our community understand the answers to some of the most common inquiries we hear, one being: “Won’t the insurance company take care of everything?” Let’s take a look at why it’s essential to have an experienced Auburn lawyer by your side when dealing with insurance claims, and how Northern California lawyers like those here at Maurer Law can make an important impact when you’re in need of help.

The Role of Insurance Companies

It may be obvious that Insurance companies are businesses, but people often don’t stop and think that, like any business, their primary goal is to be profitable. While this may seem negative at first, it isn’t inherently so. The nature of a competitive business industry is to make a profit while providing quality service. However, this profit-driven model can sometimes lead to practices that prioritize the company’s bottom line over the well-being of its policyholders.

When someone files a claim, the insurance company’s objective is to minimize the payout. As such, claim handlers are trained to scrutinize the details of the claim, find reasons to deny it, or offer a settlement that is far lower than what the claimant may be entitled to hoping the claimant doesn’t talk to a lawyer. It’s true that insurance adjusters are trained to protect the company’s financial interests, and this can sometimes lead to delays, frustration, and stress for the claimant. This is where the expertise of a Northern California lawyer becomes invaluable.

The Common Tactics of Insurance Companies

If you can understand the common tactics used by insurance companies, you’ll be better able to navigate the claims process when the need arises. Here are some tactics that insurance companies use when dealing directly with the claimant:

1. Lowball Settlement Offers: One of the most common tactics to minimize payout is to offer a settlement that is significantly lower than what you deserve. The hope is that you’ll accept the offer out of desperation or because you’re unaware of the true value of your claim.
2. Misleading Settlement Offers: The insurance company may even make a cash offer with an additional offer to pay “reasonable medical expenses for the next six months.” Someone may think this sounds great, but it is important to pay attention to how the offer is worded. The word “reasonable” is subjective, and oftentimes the insurance company will later deny any medical expenses, even if only incurred a few weeks after signing the settlement agreement, because the insurance company’s claims handler deems the medical bill or the medical service “unreasonable.”
3. Delaying the Claims Process: On the other hand, insurance companies may intentionally delay the claims process in the hopes that you will become frustrated and settle for a lower amount. This tactic can be particularly stressful if you’re in urgent need of funds for medical bills, repairs, or other expenses, and is often one that is successful in saving the insurance company money.
4. Denying Valid Claims: It can sometimes be the case that insurance companies deny a claim outright. Often they cite obscure policy provisions or technicalities. This can be devastating, especially if you’re counting on the insurance payout to cover significant losses you’ve suffered. Oftentimes, this is flat out wrong. For example, an insurance company may say you are only entitled to a rental vehicle for five days. That is not true. There is no specific time limit on how long you are entitled to a rental vehicle unless you are dealing with your own insurance company and your insurance contract has a specific policy provision stating a specific amount of days.
5. Requesting Excessive Documentation: Another tactic is for insurers to request an overwhelming amount of documentation because they know that it’s difficult for the average person to provide everything required. This tactic can delay the process and put more pressure on you to settle quickly.
6. Shifting Blame: In some cases, insurance companies might try to shift the blame to you or another party in order to reduce their liability. This can involve questioning the circumstances of the incident or suggesting that your actions contributed to the loss and, therefore, that you don’t deserve a payout.