Car Insurance. Every month you pay a premium to protect your vehicle, the second biggest investment you’re likely to make, in case of a loss caused by an accident.
If that accident happens, your insurance company is required by law to make you, their policyholder, whole again. Unfortunately, they don’t always act in your best interests.
In fact, many insurance companies engage in a well-documented strategy designed to minimize the amount they pay for justified claims.
It’s called “Delay, Deny, Defend.”
– Insurance companies first seek to delay payment of justified claims. They used to come out to look at your vehicle within two days of an accident. Now it can take two weeks or more, especially when you take your car to a shop that isn’t on their direct repair program, and therefore hasn’t entered a contractual agreement to repair your car cheaply.
– During that time, they’re looking for every opportunity to deny your claim, or scare you into the lowest possible settlement.
– Then, if they’re unsuccessful in denying the claim, or getting you to settle for pennies on the dollar, they underpay the cost of repair, forcing you to either pay out of pocket or seek legal counsel and defend your claim in court.
Why would an insurance company adopt such an aggressive policy against its own customers? Because it works. The big insurance companies are seeing record profits.
Think about it. If an insurance company can save a thousand dollars on a million claims, well… you can buy a lot of Super Bowl commercials with that kind of money.
And despite what they’re telling you in their multi-million dollar ad campaigns, they don’t have your best interests in mind.
It’s all about the bottom line, about keeping your insurance premiums in their pockets.
So, if you’re in an accident, take what your insurance company tells you with a grain of salt. Understand that they’re using a strategy designed to intimidate you into accepting a settlement on their terms.
And, most importantly, understand that it’s your legal right to get a repair and a settlement that restores you to pre-loss condition.