This Blog was posted by CAASA Call: 210-503-7870
Regardless of the Insurer, the Odds That Your Injury Claim Will be Initially Denied Can be High
Many auto liability insurers will find any excuse to cancel a customer’s policy once they are involved in an injury-related accident. And though we don’t encourage “profiling,” we have noticed the connection between such arbitrary insurance cancellation and the size of the Yellow Page display ad the insurer buys: the bigger the ad, the flimsier the coverage. Many cancel for no stated reason or say that the monthly premium payment didn’t arrive before the wreck was reported, even if it did arrive during the state-mandated 10 day grace period from the due date.
The Texas Department of Insurance keeps records on how insurance companies honor claims in our state. And they’ve recently revealed some very sobering data. One Texas minimum coverage insurer took in over $271 million in premiums in one year. But it has a claims complaint index that is two-and-a-half times higher than the state complaint average. Another minimum coverage insurer took in $575 million and had a complaint index of nearly four times over the state average. The TDI also has a “Top 10” hit-list of insurers that have the highest total complaints when it comes to handling claims. more on this website
A recent analysis of the Insurance Department’s consumer complaint figures showed that 11 of the 25 largest auto insurers in the state, all of whom are supposed to be underwriting over 100,000 policies, had a complaint index that was above average. Complaints that drivers filed with the state included such practices as delays in processing claims, “low-ball” settlement offers, outright denial of legitimate claims, and other liability disputes.
Another favorite trick of some insurance companies in denying an injured claimant is for an adjuster for the company to tell the injured party that if the claim isn’t paid, the person will have to hire a lawyer and will probably wind up with little money for their trouble. At that point, the driver feels forced to take 50 cents on the dollar (or less) of the original damage claim. This excuse is patently false! But since the driver probably hasn’t talked to an experienced auto accident attorney, he’s probably unaware of this fact, feels that he’s alone against the big bad insurance company, and accepts the substandard offer. In one year, Texas consumers filed more than 6,600 complaints against auto insurers in Texas. More than half were filed by drivers who said they were not at fault in an accident but still had trouble getting an insurer to pay their claim.
And a high percentage of these denials come from insurance companies that do business in Texas but are headquartered in another state; who then maintain they are subject to the insurance laws of the state in which they are incorporated, not the states in which they do business. So if you’re dealing with an adjuster in another state, this action could be a clue that the insurance company might deny your claim.
Put our years of experience to work for you. If you want to know what your rights are, how to proceed with your claim, and how much compensation you can secure from your auto accident case, call our Law Firm now for a free consultation and find out how we can help you.Read More