Personal. Caring.

Is the insurance company actually on your side?

Insurance companies certainly want you to think that they are on your side and that they are there to help. As a result, this is often how people think about them. They believe that the insurance company is there to assist with the cost of medical bills or something of this nature.

To prop up this image, insurance companies are quick to say that they are “like a good neighbor” or that you are “in good hands.” They make it easy to assume that they want the best for you and that they’re ready to swoop in and help when you need them the most. But is that actually how it works?

Insurance companies want to lower costs

The first thing to remember is that the insurance company is not on your side, and they don’t want to help you. An insurance company is just a business. You make monthly payments and then, if you need the insurance for something like medical care, you can file a claim. They will then decide if they should pay your claim or not.

The problem here is that they may decide that they don’t want to cover your claim, even though you need the assistance. You may think this is fraudulent or a breach of the contract that you signed when you bought the policy, but they can and do deny claims.

Even if they don’t fully deny the claim, the insurance company wants to lower the costs that they face. Their income may come from your monthly premiums, but their expenses come from paying out those claims. Even if they can just reduce 10% off of every claim, whether it’s justified or not, they could stand to save millions of dollars.

Are they treating you unfairly?

Unfortunately, this means that insurance companies will sometimes treat people unfairly. They will deny claims that should’ve been paid out. They will reduce the amount that they offer in a settlement below what the person actually needs, hoping that person will accept it anyway. It is a financial game.

This can cause some serious problems for you, especially when you are offered a settlement that is clearly too low. You must be sure that you understand all of the legal options at your disposal.



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