Many of us buy insurance under the assumption that a claim we’re forced to make in the future will be paid out. Unfortunately, it’s not always quite so simple. As many people have found out, insurance companies often have a way of failing to pay an amount you believe you’re entitled to.
This can lead people into extremely tricky situations, both legally and financially. But how exactly does all of this happen? And why? And what can you actually do about it? This article is a quick guide to understanding and dealing with situations in which insurance companies don’t seem to be doing their job.
Insurance companies are a business
This is the first things you should understand about the insurance industry. It is just that: an industry. These companies are a business. They’re not a government-sponsored thing, nor are they an altruistic force that works for the social good. Insurance companies are after one thing: big profits.
What this means is that, like any business, they will try to cut corners in order to make as much profit as possible. If they can find a way to reduce the cost of business – i.e. not pay you – they will. Remember that, as a business, an insurance company may have been rated by the Better Business Bureau. See http://bbb.org/ for more info.
There are certain things they just won’t pay for
It’s important to go over your insurance policy as thoroughly as possible. Really, this should have been done before you ever signed the thing. Unfortunately, a lot of people are so eager to get the process over and done with that they’ll sign the papers without reading them properly. After all, such contracts usually contain a lot of text. And it’s usually written in legalese that would make the average person’s head spin.
Still, there will be a number of situations where an insurance company can quite rightly refuse to pay. If you have an injury was self-inflicted, for example. Or if you have a surgical procedure that was non-essential, like cosmetic surgery. If you need help understanding a policy, check out http://insure.com/.
Get legal help
Of course, many insurance companies will try to use different interpretations of events to their advantage. They’ll find ways of making patients pay more of their medical bills than they should be. They may even flat-out refuse to pay for a legitimate claim.
So are you helpless when this happens? Can you only appeal their decision and hope they grow a conscience? No, you’re not that limited in your options. If your insurance company has failed you, you might want to take the situation up with a lawyer as soon as possible. See http://ankinlaw.com/ for more details.
Don’t take their help for granted
A lot of people get insurance and assume that it will all work out if something goes wrong. When people make these assumptions, they may decide that saving money is no longer such an urgent need. So they spend a little more frivolously, thinking that this possible “rainy day” will be sorted out by their insurance.
Never make this assumption. You should also be saving up for emergencies, even if you have the most trustworthy insurance company on the planet.