When It Comes Time To Collect In St. Petersburg, The Insurance Company Is Not On Your Side
Michael Babboni
Law
Insurance is a paradox, but it’s one that most Americans are familiar with. When you take out an insurance policy, you pay some money to that insurance provider every month, hoping that you won’t ever need it. But, depending on the type of insurance, if something terrible happens to your car, your home, or even you, this is where insurance steps in and provides the money required to help you recover.However, when it comes to personal injuries, even those that aren’t your fault, the friendly insurance company you faithfully paid money to every month can become a different company now that it’s time to payout.
Denial Is Profit
The most important thing to understand about the insurance business model is that they make money by collecting monthly premiums. They lose money every time a legitimate insurance claim comes in, and they have to honor it.
Unfortunately, this means that the mechanisms insurance companies have to find a reason to deny claims and not pay legitimate customers the money they are owed can be comprehensive and effective. Insurance companies employ many different tactics to find reasons not to pay out. Some of the more common strategies are:
Requesting Non-Accident Related Medical Records
This is a very big red flag. It’s one thing for an insurance company to need an accurate assessment of the injuries you suffered, but there’s no relevant reason to need medical records with no relation to an incident. One common reason for doing this is finding a pre-existing condition that may invalidate a claim. The insurance company can use pre-existing conditions to claim your current needs aren’t the result of the injury but of a condition you already had.
Asking For A Written Statement About The Accident
You have no legal obligation to give a statement, on record, to the insurance company about what happened in an accident. However, should you do so, that statement will become legally binding, and, even if it is later proven to be incomplete or incorrect, the insurance company can still use it to contradict and even invalidate and deny any claims you later make based on new information. Always consult with someone else before agreeing to submit such statements to an insurance company.
Offering A Lower Settlement
In some cases, an insurance company will agree that compensation is owed, but the twist comes when they offer to pay something far lower than what you actually deserve. This is a popular tactic early on in an accident investigation before victims fully understand the extent of their injuries. However, if the insurance company can get that early settlement in, even if it becomes clear later an accident victim needs much more, it’s too late; they’ve already accepted a settlement that usually has a clause built in for no further compensation.
If you or someone you know has been injured and is experiencing some doubt or skepticism about how your insurance company handles the settlement, talk to a personal injury lawyer and make sure you’re protected from a denial claim and not getting what you deserve.