State Farm Insurance claims to be “like a good neighbor” and Allstate wants you to believe that you’re “in good hands” when you buy their insurance. The reality is that insurance companies like to collect premiums, but they don’t want to pay out claims. A CNN special investigation reveals the tactics that State Farm, Allstate and other insurance companies use to intimidate consumers and increase profits. That’s why it’s important to work with an experienced California car accident lawyer that can’t be fooled by their tricks.
Insurance Companies Are More Interested In Profit Than Policyholders
State Farm and Allstate are the two largest automobile insurers and they’re both working with the McKensie & Company, a consulting firm that’s teaching them how to pay out less to claimants and increase profit. They pretend that they’re paying out less to claimants to keep prices down for their policyholders, but CNN reveals how they’re paying out less money, while not reducing the cost of policies by a single penny for their policyholders. All of the money they’re saving from ripping off consumers is going directly into increasing profits for their stockholders and raising salaries for their top executives.
The Three D’s – Delay, Denial and Defense
State Farm and Allstate are training representatives to disparage claimants with less serious injuries by implying they are committing fraud and offering them pennies on the dollar as compensation. First, they delay by taking their time reviewing these claims, making claimants wait while their medical bills pile up and their lost earnings accumulate. Next, they deny the claim, saying that there’s minimal property damage, so it’s not possible to really be hurt, offering as little as $50 as “nuisance value” to claimants. Finally, they “defend” the claims, forcing claimants to litigate claims that they should have settled for a fair amount of compensation. That’s why it’s important to hire an experienced California car accident lawyer to collect the highest amount of compensation for your car accident injuries.