How Insurance Companies Evade Paying You

You are probably a victim of an insurance company downright refusal to honor your claim, right? In your eyes, the auto insurance industry is just a bunch of crooks. They will look to weasel out of any policy despite its legitimacy.

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In spite of these problems, auto insurance is a must for any car owner out there. Failure to comply will land you in trouble. Unpaid insurance claims cause unwanted suffering to the insured party. Here are common tactics insurance companies use to evade honoring claims.

Reduced Coverage :

Some auto insurance policies will claim to have you covered together friends and family who borrow the car. It might shock you to learn the same policy will refuse to honor a claim if the car was in possession of a teenager with a speeding ticket.

The policy may also refuse to cover permissive drivers. These are described as people who you let use your car from time to time. When buying a policy for your car, it is important to ask your insurance agent the scope of the policy. Ascertain that all scenarios that involve the car are covered.

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Coverage for Punitive Damages :

A court case may arise due to you causing an accident. In the event, the court finds you guilty of the offense and awards punitive damages. Your insurer may refuse to cover punitive and exemplary damages awarded. Going through the fine print of the policy and asking the insurance broker questions. Will allow you to know how such a claim would be handled by your insurance company.

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Asking Deceptive Questions :

In the event you are involved in an accident, an insurance adjuster will call you. To avoid paying they will trick you into answering deceptive questions to suit their agenda. You may get such questions as Do you wear glasses? If you answer you do the next question could be.

When was the last time you visited the optician? Anything over the standard period for visiting an optician will land you in trouble. Blame will be shifted on you through your eyesight despite it having not contributed to the accident.

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Monitoring Your Social Media :

Treacherous can be used to describe this insurance industry world. Some companies will use your social media activity against you. Once you are involved in an accident, they may look through social media account to find material to use against you.

An Instagram or Facebook selfie or video while driving will do the trick. It can then be used against you, with them stating you were on your phone at the time of the accident like other times. You should be careful of what you post on the social media sites at all times.

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Delay Tactics :

A common feature among most insurance companies, meant to frustrate you into submission. In the event dirt cannot be found on you, insurance companies will delay attending to your claim in the hope you will give up. Most policyholders give up claiming from the insurance companies due to this tactic.

Normally the insurance company will hope the claim passes its statutory period. Once this happens, you can no longer claim the policy. If you have a valid claim, do not give up pressing the insurance company into paying out your claim. It is your right.

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Conclusion :

While these are not all the tactics used by insurance companies to frustrate insurance claims, they are the most common. It is imperative before purchasing a policy to read all the fine print. As the saying goes, the devil is in the details.