Insurance companies are like any business; they want to make a profit. They want to increase the revenue and decease the payouts. The big insurance companies have been in business for decades, which means they have followed this principle for a long time. The desire for higher profits may lead to using deceptive practices to lower payments going out. As someone who may receive a payout from an insurance company, a knowledge into these practices is an asset.
What Deceptive Strategies do Insurance Company’s Employ?
Policy rescission is an example of an unfair strategy the insurance companies use. In this strategy, the insurance company will cancel a policy if the policyholder needs substantial coverage. Insurance companies state they do this when they find a discrepancy within the original application, such as a pre-existing condition not stated. This, unfortunately, allows the insurance company to not pay for the costs even if you have never missed a premium. The worst part is that this cancelation comes right when the coverage is needed. Furthermore, insurance companies do not limit the use of policy rescission to just intentional fraud.
Another unfair tactic comes in the form of purging. With this tactic, the insurance company identifies unprofitable policies and increases the rates. It has even been reported that some insurance software can be adjusted to meet particular profit percentages. In these methods, it is not out of the realm of possibility to see some plans, single or family, go up thousands of dollars with minimal warning.
Contact an Experienced Rhode Island Personal Injury Lawyer
Speaking to the insurance company can be daunting. You need a personal injury lawyer who knows how to talk to the insurance companies and knows their strategies. Speak with our knowledgeable Rhode Island personal injury lawyers who will work hard to get the most compensation for your injuries and losses. Contact us at 1-401-431-1990 or fill out an online contact form for a free (no obligation) case evaluation.