In 2012, State Farm increased its profits from $800 million to $3.2 billion. Allstate tripled its profit to $2.31 billion. Locally, American Family reported a 22% increase in profits.
How do they do it? Delay, Defend, Deny
They Delay payments, requesting unnecessary information, or information the consumer doesn’t have and can’t obtain. For example, they may demand a consumer’s prior medical records before paying for emergency room bills from a crash.
They Defend claims of dubious strength. In a recent case, the insurance company took the position that even though their insured rear-ended our client, it was our client’s fault because our client carefully checked for traffic while merging. Incredible? Yes. But they were hoping we would roll-over and accept a reduced value based upon this preposterous claim.
They Deny meritorious claims. Claims that were completely denied by insurance adjusters pre-suit, or offered just a nuisance settlement, suddenly have real value when the case is placed into suit. Denial of claims is a common tactic, hoping that the injured consumer will just go away rather than stand up for themselves.
So don’t let the insurance company profit at your expense. Know your rights and be prepared to press forward. You’ll be glad you did.