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Everyone knows that it can be very difficult to work with an insurance company after an accident. Sometimes it feels as if you and the insurance provider are speaking two different languages. Often, insurance companies use certain "tricks of the trade" to avoid paying your claim. Mind tricks simple, but may end up costing a lot of money.
One trick of the insurance companies is confusing the use of its customers. Insurance policies are written in a language incredibly hard and dense. Unless you are familiar with legal jargon and difficult insurance, these policies are almost impossible to interpret. The South Carolina State Supreme Court said it best: "Insurers in general, or are trying to convince the client in the sale of policy that everything is covered and convince the court when a claim is made that there is nothing covered. "
In an effort to help the Consumers, lawmakers have approved "plain English" laws that require contracts to write more simplistic. However, many Americans still are not fully aware of the complexities of their insurance policies and contracts. Insurance companies continue to use obscure language in their contracts to confuse to their customers.
Another trick in the arsenal of the insurance companies are using your credit score against you. Your credit history can have a severe effect on your premium costs. Sometimes, your score can even prevent you from benefiting from any insurance at all. This can hurt many people, even those fiscally responsible. For example, many people pay all your bills on time, but they have huge credit records. Those who have not borrowed much money in the past years may have credit ratings and through no fault of their own. However, insurance companies can use this as an excuse to demand higher premiums.
Using credit scores as a measurement tool can be detrimental to many. Some people are in a difficult financial situation from time to time. Insurance companies use these hard times in a person's financial history to justify the increase in premiums, assuming a credit score poor amounts to a poor or reckless driver.
Another problem with this method is that credit scores can sometimes be unreliable. A recent study found that 79% of credit scores contain errors. The same study reported 25% of these errors are very severe. Also, based on credit scores for determining premiums is unfavorable for the poor and minorities, many of whom do not have enough credit history to create a credit score.
These tactics use the insurance industry can be detrimental to the average consumer. Make sure you are not surprised by your insurance provider.
About the Author:
Kenneth L. Christensen founded The Christensen Law Firm, PLLC, a personal injury law firm in Salt Lake City, Utah. He specializes in car accident, dog bites, wrongful death and serious injury cases. Learn more about Mr. Christensen at http://www.utahpersonalinjurylawfirm.com and http://www.utahaccidentlawfirm.com . You can also read his blog at http://www.utahpersonalinjurylawfirmblog.com
Article Source: ArticlesBase.com – Common Tactics by Insurance Companies Can Cause You to Lose Your Accident Claim
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