Insurance is meant to be a safety net in case of unexpected events, but policyholders are often left feeling cheated when insurance companies refuse to pay out claims.  This is why many consumers and attorneys view insurance companies as evil villains. So how do insurance companies get away with denying claims? Let’s delve into some of the most common tactics used to avoid paying what’s rightfully owed.

Delaying the Claims Process

Insurance companies are masters of procrastination. They may ask for repeated documentation, not return phone calls, or slow-walk the claims process in any way they can. By the time policyholders have gathered all the necessary information, they may find that the deadline for filing a claim has passed.

Hiding Behind Fine Print

The devil is in the details, and insurance companies know this all too well. They often include exclusions in policies that aren’t immediately apparent, meaning policyholders may be paying for coverage they don’t actually have. This can lead to devastating financial losses when the policyholder needs the coverage the most.

Rejecting Claims Based on Technicalities

A small mistake can lead to a big headache when it comes to insurance claims. Insurance companies may reject claims if policyholders miss a deadline for reporting the claim or don’t provide the correct information. They’ll use any technicality they can find to deny a claim.

Lowball Settlement Offers

Insurance companies may offer a settlement that seems like a fair deal, but policyholders should be aware that accepting a settlement may prevent them from making further claims. The insurance company is betting that the policyholder will take the easy way out and accept the low settlement, rather than fight for a larger payout.

Using Biased Experts

Insurance companies may use their own experts to evaluate claims. These experts may be biased in favor of the insurance company, so it’s important for policyholders to consider getting an independent expert to evaluate the claim.

Protect Yourself

Insurance companies have a variety of tricks to avoid paying out claims, but policyholders can take steps to protect themselves. By understanding the policy, reading the fine print, and seeking independent advice, policyholders can ensure they receive the coverage they paid for. Don’t let insurance companies get away with denying claims – protect yourself and your finances.