Insurance companies are increasingly using more tactics to increase their bottom lines and hold onto more of their money. Due to the current economy, insurance companies are employing strategies that can harm consumers. According to the American Association for Justice’s (AAJ) report, “Tricks of the Trade: How Insurance Companies Deny, Delay, Confuse and Refuse,” the insurance industry is attempting to make money at the expense of consumers. The report identified some of the following insurance company tricks:
1. Denying Claims: Even some of the large insurance companies, such as Allstate, AIG, and State Farm, have been denying valid claims as a way to boost their bottom lines. Insurers have even been known to reward employees for successfully denying claims.
2. Delaying Until Death: Insurance companies continue to delay claims in the hopes that you will eventually give up, and many people do.
3. Confusing Consumers: Have you ever tried to read an insurance contract? Insurance companies regularly use agreements that are incomprehensible to consumers.
4. Discriminating by Credit Score: Credit reports are frequently used to determine premiums and insurance approvals. Unfortunately, with the current economic conditions, many consumers who once had good credit now have low scores.
5. Abandoning the Sick: Policyholders who are the most vulnerable and in need of medical coverage have been the targets of insurance companies. Some insurers have been found to offer bonuses to employees who meet “cancellation goals.”
6. Canceling for a Call: Very few people realize that insurance companies often view a telephone inquiry about possibly making a claim the same as they do actual claims. When it comes time to renew, some of these companies are refusing to do so based on a phone inquiry.
Do your homework before applying for an insurance policy, by getting your copy of Ben Glass’s book, The Ultimate Guide To Buying Car Insurance In Virginia.
[...] you read our blog, “Insurance Companies Looking to Protect Themselves at the Expense of Consumers,” then you are aware of a report by the American Association for Justice’s (AAJ) that [...]