Whether it is health insurance, life insurance, auto insurance, homeowner’s insurance or any other type of insurance policy, most people have insurance. Many people, however, never stop to think about how their insurance actually works.
When you buy an insurance policy, you are agreeing to pay a premium in return for which the insurance company agrees to cover the cost of certain expenses as defined by the policy you purchased. In some cases, those expenses are very likely to arise, and in some cases they are not very likely. The premium that you are asked to pay depends on how likely someone who fits your profile is to incur the costs that the insurance company has agreed to cover. The insurance company is a business, so of course most people will ultimately pay more in premiums than the company pays out in claims. However, in some cases, a catastrophic accident or serious illness may result in more claims than the insurance company expected. An insurance dispute attorney can help ensure that this situation doesn’t keep you from receiving your claim.
When you pay your premiums, in the event that you need to file a claim, you expect that the insurance company will act in good faith. You expect that the insurance company will pay the fair value of your claim, in accordance with the terms of your policy. When the company does not act in reasonable compliance with the policy, that is called bad faith.
Sometimes, insurance companies will act in bad faith in the interest of profit because the less they pay out in claims, the more profit they make. Here are some common bad faith tactics insurance companies use to improve their profit margin:
Most people don’t want to get involved in a court battle: it is stressful, complicated, expensive and time-consuming. Some insurance companies count on this reluctance. They know that for many people, offering a settlement that is insufficient to cover the costs, or refusing to pay the claim altogether, will put an end to the issue. The fact is, they may be banking on your reluctance to file a legal claim.
If you have a concern about an insurance company and you believe that the company may be acting in bad faith, contact us right away. In some cases, the situation is merely an oversight and can be cleared up quickly with a letter from an attorney. But unfortunately, in some cases, the insurance company be may be counting on you simply to accept their word. We have helped numerous people to recover the full value of legitimate insurance claims.
Taussig & Smith handles cases throughout the state of Colorado.