The Secrets Your Insurance Company Would Not Tell You

Insurance companies are obliged to act in good faith to ensure that they compensate their policyholders fairly. To reduce liability by fraudulent means, many insurance providers seek to do so, given the complex nature of the negotiations. The West Law Firm provides care and guidance to persons intimidated by the law. When an insurer acts in bad faith, hiring a bad faith insurance lawyer can ensure that a claimant has the help needed to get full cover and fair insurance benefits and compensation.

Adjuster Is Negotiator

In an attempt to reduce compensation costs, insurance companies use some techniques for claim handling. It can be challenging to negotiate with an adjuster, especially for the people who are unaware of the claim handling process. Individuals usually assume adjusters are their to help, but they may sometimes manipulate claimants to report data that can be used later to reject their claim.

Payment of the minimum amount is the preferred option for the insurance company, and it is imperative for policyholders to understand this. In the end, the adjusters make an emotional appeal to individuals and use several tactics to encourage them to accept a lesser solution than what their policy might otherwise permit.

Policyholders

The insurance companies must comply with the law in faithfully fulfilling their contracts - insurance policies. Because of this knowledge, adjusters usually want to avoid having a lawyer get involved. Likewise, insurance adjusters will try to use their negotiating power against  the insufficient knowledge and experience of their policyholders to record their statements without the participation or advice of a bad faith insurance lawyer. Policyholders thus often need the support of a capable lawyer in representing their best interests independently. It is often the best way to assure that the policyholder receives the right compensation.

Preferred Providers

Insurance firms have established commercial relations with "preferred" service providers for insurance benefits payment. It includes but not restricted to insurance preferred contractors for house insurance claims and doctors or hospitals for medical insurance plans. These preferred providers are often reluctant to question the decision of an insurance company regarding claim denial. Consequently, the "preferred" service provider of the insurance company is not exactly an independent voice on the matter.

It explains why the insurer is determined to encourage you to use these "preferred" providers – mainly for convenience reasons. Insurance corporations may also prevent you from hiring your own independent provider because they are "pricey" and make you believe you'll be paying for services that your insurance company has not "pre-approved." However, it is true that good faith insurers have a responsibility to compensate policyholders for all insurance benefits which they deserve after a loss, according to the policy.

Making Your Claim Undervalued

The purpose of an insurance company is to make a profit. To do this, they must be very careful about the risks they assume by the promises they make in their policies, and yet offer enough so that customers are willing to pay for the coverage.

While there are many profitable and honest insurers, some may try to undervalue valid claims to save money. Many adjusters persuade the insured to take less than full compensation for minor damage or past injuries. As a result, individuals receive far less than their policy agreement specifies.

Cheaper Settlement

Insurance companies are usually motivated to settle rather than take a claim dispute to court. The West Law Firm recommends individuals hire a bad faith insurance lawyer for any dispute that takes place regarding the benefit. Where this happens, the policyholder is entitled to take advantage of an attorney to take action against the insurance company in breach of contract and acting in bad faith. A fair settlement can be reached without the need for a trial in many cases.

We, at The West Law Firm, have a dedicated team of lawyers to help people in need who are struggling with their insurance claim. Contact us to get what you were promised by your insurer.

** Disclaimer: The above article does not imply a relationship between attorney and client, nor is it legal advice.