If 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 identifies some of the unsavory tactics used by insurance companies. According to the AAJ report, insurance companies have been denying claims, delaying until death, confusing consumers, discriminating by credit score, abandoning the sick and cancelling for a call, all in an attempt to save money.

The report, titled, “Tricks of the Trade: How Insurance Companies Deny, Delay, Confuse and Refuse,” gives some tips to consumers so that they can protect themselves from insurance companies.  These tips are summarized below:

1.    Know what is covered. You need to know what is covered in your insurance policy and how to appeal a denial.

2.    Fill out forms carefully. An honest mistake can result in a denial.

3.   Don’t cash a premium refund check. If your insurer decides to rescind your insurance coverage, it may send you a refund check for the premiums that you paid. By cashing the check, you are basically saying you agree to the decision.

4.    Make sure everything is in writing. Save all correspondence with the insurance company, along with any bills.

5.  Contact your state insurance department, if needed. Although this department cannot represent you with a private complaint, you should still report the problem you are having.

If the insurance company is being difficult, you may want to consider talking with an attorney who will be able to step in to help you.

Order your copy of Ben Glass’s book, The Ultimate Guide To Buying Car Insurance In Virginia.