Can You Handle Your Insurance Company Alone?
When a policyholder is involved in an accident and makes a claim against his insurance company, he expects that the coverage he paid for will, in turn, compensate him for his injuries or losses. Unfortunately, more often than not, insurance claims are met by yards of red tape and bureaucratic stonewalling. Many people get so tired and discouraged that they wind up settling for much less money than they need, want, or are entitled to.
The harsh reality is that insurance companies are in it for profit. To a large insurer, issuing policies is not a matter of compassion or human interest, but one of underwriting, risk assessment, and profit margins.
How Insurance Companies Make Money
Profit, in simplest terms, is the sum of all a person or company’s earnings, less the sum of all its costs, expenses, or losses. For an insurance company, earnings come from premiums paid by customers and the returns on investments made using those premiums. Losses, on the other hand, are the sum of its underwriting expenses and the payouts it makes in accordance with the policies it issues.
In other words, should you make a claim against your insurance company, you are essentially asking the company to incur greater losses. Is it any surprise that insurance companies throw up barriers to large claims, regardless of what their policies stipulate?
Reasons to Hire a Lawyer
Hiring a lawyer can help you deal with your insurance company in three ways:
- Your lawyer will be much more familiar with how insurance companies work than you do. They will be able to read and understand your insurance policy and make a solid case as to why you should be entitled to money.
- Your lawyer’s expertise and experience can help keep you from making costly mistakes when dealing with your insurer. Remember, anything you say and any information you provide to your insurance company may be used against you later on.
- Your lawyer has more clout than you do. Many insurance companies won’t take you seriously until the threat of legal action is imminent. Your lawyer’s status as a legal practitioner gives you a stronger bargaining stance to work with.
For help with your personal injury case, call Wausau personal injury lawyers Habush Habush & Rottier S.C. ® at 715-387-4242.