As known by almost everyone, insurance companies are strictly in the business of making money and will therefore try their hardest not to pay out your claims. However, there are many things that people don’t know about insurance companies. Five of these many secrets will be discussed here.
Technically speaking, automobile insurance is tied to the automobile itself, not the driver. This has broad implications in regard to the premiums you may end up paying. For example, if you let someone else drive your car, and the get into an accident, your insurance company may be the entity that has to pay the injured party. Therefore, you will be responsible for paying the increased premiums because the accident will actually end up going on your insurance record. Remember that each insurance policy can be built the way you want. Hence, you may be able to exclude certain drivers from your policy if you do not want them driving your vehicle.
One way to lower your costs is to pay your bills on time. Doing this can go a long way to improving your credit score, which will let the insurance company know that you are a reliable person. Another way involves simply asking for discounts. Specifically, ask your insurance company about what discounts they offer (don’t be shy). These can include, multi-driver or multi-vehicle discounts, good student discounts etc. These days, insurance companies are trying to form longer term relationships; therefore, they will usually be happy to give you a discount if it means you will use the insurance company for other services. Another tactic you can use is simply to shop around for a better rate with other insurance companies.
In order to discourage you from hiring an attorney, insurance companies may characterize attorneys as greedy and unhelpful to your case. They may also offer you a settlement early on in the litigation process so that you are incentivized to hire a lawyer. However, if you do this, you may miss out on a larger settlement. One of the more unique things that insurance companies do these days involves incentivizing you not to file suit by lowering your premiums for a certain period of time.
These companies regularly use doctors to deny claims and / or pay less on claims. If you provide them with your medical records, the doctors will go through your records to try and find anything they can use to say you had a pre-existing injury for example, or that your injuries are not as bad as they seem.
Insurance adjusters usually try to get you to provide recorded statements so that they can have a record of you saying things like; ‘I am not hurt’, ‘My injuries are not affecting my life circumstances’, or ‘There is a chance the accident could have been my fault’. Once the insurance company has these statements, the direction in regard to the litigation can be altered significantly, and usually not to your benefit.