09/17/2015
Here’s a favorite post of ours from the past: The average American spends thousands of dollars per year on insurance. Homeowners or renters (if you even buy renters), automobile, medical, life, business, disability, umbrella and other coverages.
Because most of us never suffer the large losses that everyone worries about, people have very little experience in dealing with insurance companies on large claims. Those that do are often in for a bit of a shock.
Delay, the use of complex policy language to deny claims, and substantial underestimating of losses by carriers are common. Many people don't realize that insurance companies, like banks, earn their profits from investments, stocks, bonds, venture capital and real estate, not from their premiums.
The profitability of a company depends on how much money they have available to invest. If a company owes ### million to all claimants at a given point in time, it can save 8% or more of that per year in investment profits by merely engaging in delay. It can save another 30 to 40% by engaging in lowballing settlement offers. Another 20 to 30% can be saved by wrongful claim denials on confusing policy language.
All of which means that you are the loser when it comes to dealing with insurance companies. Don't lose out, call an attorney who can help. Call my law office.
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