Days of filing your claim and getting your money may be over. If those days ever existed. Here is what is happening with the insurance industry and how it impacts you.
The theory of insurance is that we all pool our money, and then if one of us gets into trouble (hopefully a small percentage), there is money to make things right.
Here is the reality.
Insurance companies are for profit. That means they want to collect premiums and pay out as little as possible. To do that, they use a variety of tactics (some call them tricks) to underpay policy owners. That is why, in my experience, more and more people here on the Gulf Coast require lawyers to settle their insurance disputes.
Here is a typical situation that I see every day. First, the insurance company offers a low amount of money. Why do this? If you accept, the case is over, and the company has saved money.
More reality. Accepting this first offer may not be in your best interest. You may not end up with enough cash to get well. Did you know that out of that money, you may have to pay back the insurance company for medical expenses they have already paid?
Let me add that once you sign that settlement form and cash the check, you will never receive another dime. You had better know what you are doing.
Here is another piece of reality. You will be paying more for insurance here in Mobile and Baldwin Counties. Homeowners’ insurance is up mainly because of storm damage claims, and auto insurance is up because of more accidents and theft.
Now, this will probably not surprise you. To keep profits high, insurance companies spend a lot of money to influence the state legislature. Alabama is one of very few states that says if you are even 1% at fault for an accident, you cannot collect anything … ever. Does that sound like your government is working hard to protect you or trying to make sure it can fund a few more election commercials?
One study I cite shows that even after legal expenses, people who use lawyers put more money in their pockets than those who don’t. I think this is true. The reason has nothing to do with happy hands, cute reptiles, or characters in white pantsuits. It would cost more to go to court than settle with the attorneys.
And the future? Despite paying your premiums on time, it will not get easier to collect when you need it.
If you are injured in a traffic accident, on-the-job injury, nursing home neglect incident, slip-and-fall, boating accident, or other personal injury, you can talk to us at the law firm of Steele Ritchie for free. We genuinely want to help. We are local attorneys with decades of experience helping people, especially in the southwest Mobile area. Give us a call at (251) 666-1212.
Allen Ritchie
Alabama Personal Injury Lawyer