What Insurance Companies May Not Tell You
Michael Babboni
Insurance Coverage
Insurance companies are organizations that are looking to profit and may not always have your best interests at heart when it comes to any sort of claim. However, the focus of an insurance company really should be on the welfare of their clients, rather than the bottom dollar and their overall annual revenue figures.The following are just a few things you should know about insurance companies and what may happen behind closed doors after they receive your payments.
Too Good to Be True?
When it comes to insurance, if it seems too good to be true, then chances are, it is. When you see a very low insurance premium for a plan that is vital and necessary, then you should probably take a closer look at it to be sure it is what you are expecting.
Perhaps the amount you are insured for is a lot less than you were expecting, or the deductible is much much higher. Premiums that are exceptionally low should always raise a red flag and definitely, warrant a closer inspection before purchasing and signing.
Credit is Always a Factor
We all know how important our credit score is when it comes to our financial success, but were you also aware of the role it may play when it comes to obtaining an insurance policy?
During the underwriting process, your credit history is one of the major elements that the insurance company will look at when writing your policy. If your credit is far from perfect and is lower, then you may come to expect higher premiums. The better the credit, the lower the premiums may be. It may also be a deciding factor that leads to the rejection of your application altogether.
Expecting a Quick Payout After a Claim?
If you have filed a claim and are expecting a payout, you probably shouldn’t expect to receive it too soon. The amount you think you are approved for may actually turn out to be just an initial offer, and you may actually be entitled to a lot more than they say they are giving to you. If you want a quick and immediate payout, then you are probably going to sacrifice a higher payout for a much smaller amount.
If you are able to afford some time and patience, and maybe the expertise of an experienced attorney, you can hold out a bit longer for an appeal and perhaps a much higher payment.
Overcoming Complications
Speaking of claims, a lot of insurance companies try to make the process very long and complicated. They tend to draw out the process for as long as they are allowed and may insist on receiving more proof or evidence regarding the claim before they make any type of decision or make any payments. Insurance companies will try to negotiate with you but will generally only have their own interests in mind, and they are looking at trying to save as many dollars as they can.
In order to receive better treatment and perhaps a fair judgment and settlement, it may be a good idea to have an attorney on your side to conduct the negotiations with the insurance company. Attorneys are well aware of the tactics and legal terms the insurance companies often use when they are trying to disqualify your claim and dismiss it altogether.
You will want an attorney with their own strategy to play against the tactics of the insurance company that is doing nothing but trying to draw out and over complicates the process to save money.