The Soiled Little Secret that the Insurance coverage Firms Do not Need You to KnowThank you for reading this post, don't forget to subscribe!
Most of us are good residents and buy legal responsibility insurance coverage to cowl us in case we trigger an accident. Some folks buy minimal legal responsibility protection and a few folks buy extra.
While you purchase this insurance coverage you’re doing it to not solely adjust to the regulation, however to guard you and your belongings in case you trigger a automotive, bike, or different motorized vehicle accident.
Now for example that you simply get into an accident that’s your fault; you report the accident to your insurance coverage provider; you assume that your insurance coverage firm will cowl you pursuant to your insurance coverage coverage proper? WRONG!
Should you learn the advantageous print in your insurance coverage coverage you’ll discover a bunch of language that almost all non-lawyers wouldn’t perceive. The gist of the language in plain English is that by accepting the insurance coverage coverage, you conform to cooperate with the insurance coverage firm in the event that they resolve to litigate, and the insurance coverage firm is the one who decides whether or not a case shall be settled, not you.
The insurance coverage corporations are all about making tons of cash and paying as little as potential. Because the creation of legally necessary insurance coverage protection (Proposition 213 in California) the insurance coverage corporations have turn into very cavalier as a result of their coffers are filled with your cash.
As a substitute of settling meritorious claims, they’re forcing claims to be litigated in Court docket in an try to cease private damage attorneys from acquiring a simply restoration for his or her shoppers. They know full effectively that non-public damage attorneys don’t have as a lot cash to litigate as they do, so their ploy is to starve out the private damage attorneys and in the end make it tougher for people who find themselves injured in accidents to acquire a restoration. In the long run it’s the shopper and individuals injured in accidents who’re harm, whereas massive enterprise makes extra revenue at your expense.
Even individuals who trigger accidents and have correct legal responsibility insurance coverage to cowl the declare are being victimized by the insurance coverage corporations.
The insurance coverage corporations are specialists at deception. Along with your cash, insurance coverage corporations contribute cash to politicians, and run media adverts which blame the private damage attorneys for making insurance coverage charges so excessive. What they do not say is that the backlog in Court docket is as a result of insurance coverage corporations not settling claims like they need to within the first place.
Now let’s return to the instance of you inflicting an accident. If the insurance coverage firm is unreasonable and refuses to settle a case at or under coverage limits, you’ll then be dragged by means of the authorized system. You’ll have to reply discovery, seem for depositions, and even take day without work to go to trial. This can be a lengthy and arduous course of that you simply didn’t assume that must cope with if you bought legal responsibility insurance coverage. Shock!
Should you lose at trial, the insurance coverage firm will typically pay the judgment, however guess what; YOU WILL HAVE A JUDGMENT AGAINST YOU ON YOUR CREDIT REPORT, and within the Court docket file! Due to your insurance coverage firm your credit score has simply been dinged on account of no fault of your personal.
Is that this honest? I undergo you that it isn’t. You paid for insurance coverage; the insurance coverage firm might have settled the case for you inside your coverage limits; as an alternative, they determined to litigate in an try to reduce what they need to pay out in order that their income stay excessive. They did so with none regard in your credit score report, or having your title seem within the public report as having a judgment towards you.
Many insurance coverage corporations have in-house attorneys; some use exterior attorneys. These attorneys are presupposed to have an obligation to you to do what’s in your finest curiosity. The truth is that they do what’s within the insurance coverage firm’s finest curiosity. That is the last word battle of curiosity. Ethically the lawyer that the insurance coverage firm makes use of to characterize you has an obligation to you, not the insurance coverage firm. The truth is the lawyer will get his marching orders from the insurance coverage corporations.
A worst case instance is the current Hurricane Katrina catastrophe. Have you ever examine the entire poor people who find themselves getting screwed as a result of they aren’t being coated by their insurance coverage corporations for insurance coverage that they paid for?
It is time for America and shoppers to get up and odor the roses. It’s not the trial attorneys which can be the issue; its massive enterprise eager to screw the little man to allow them to receive extra revenue at your expense. Some have made this a political concern. I’ve even heard President Bush speaking about Tort reform, and blaming the trial attorneys for the nation’s well being care woes.
Anytime you right here fallacious reform keep in mind one factor; you’re about to be screwed! Anytime your proper to get well for damages in a Court docket of regulation is infringed upon, you can be the sufferer, whereas massive enterprise rakes within the mula!
By Norman Gregory Fernandez, Esq., © 2007
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