It’s no surprise that insurance premiums are getting more costly every year, and that’s mostly because of how expensive it is to pay out any insurance claims that come around. There’s a large variety of different types of insurance out there, and each one of them can potentially cost the insurance company millions in a pay-out. This makes insurance companies fight harder to deny expensive claims so that they can maintain their profit margins. A few types of claims are the main culprits behind the increasing prices when it comes to premium costs, and it’s pretty obvious why.
1. Car Insurance Claims
Car accident claims are the most common type of insurance claim due to how often they occur. Since everyone is required by the law to carry their car insurance, every car accident goes through the car insurance process. This means that the insurance companies know how to fight to deny these claims very well, but it also means that lawyers know how to get the maximum amount of compensation from the insurance companies.
Many different factors contribute to how lucrative a claim can be, ranging from auto repair costs to hospital bills. You would need to document the aftermath of the accident very well so that you can prove who’s at fault and how much the accident has cost you so that you can receive adequate compensation.
2. Homeowner Insurance Claims
This type of insurance claims heavily relies on where you live, as places with higher risks of natural disasters or burglary tend to have stricter policies regarding filing insurance claims. Ensuring your property requires you to read your insurance contract very carefully, as getting your claim denied after experiencing significant losses to your property’s value, can be very difficult. It’s also advised to have your lawyer read over your contract before you sign it to ensure that you don’t miss anything due to being unfamiliar with some of the terms mentioned.
Your home is one of your most expensive assets, and insurance companies know this very well, and that’s why they’ll try their best to avoid paying out large insurance claims. Some homeowners have been able to net themselves millions in compensation from insurance companies, while others couldn’t cover their losses due to technicalities in their contracts.
3. Personal Injury Insurance Claims
Work-related injuries are one of the leading reasons why insurance companies are bumping up their premium prices. There are hundreds of stories told about people who were compensated with millions of dollars due to an injury that occurred in the workplace. Injuries can come in many forms, including developing a disease due to an unsafe work environment.
An example of this would be the black lung disease that affects coal miners as filing for a personal injury claim from this work-related disease guarantees compensation for the injured workers. This includes the cost of lost wages, medical expenses, and any other financial damages that were caused by the disease. Your employer is responsible for your health and well-being while you’re at work, which means they’re responsible for paying any compensation you require. Learning how to file personal injury claims is very important as it prepares you with the ability to handle any work-related accidents swiftly.
4. Bad Faith Insurance Claims
If your insurance company is taking their sweet time investigating your insurance claim while you’re paying a lot of expenses out-of-pocket, then you can file yet another claim called the bad faith insurance claim. Paying for your insurance should guarantee that any claim you file will be investigated in a quick and timely manner, while also providing you with payments as soon as a claim is deemed as legitimate.
Failure to provide that from your insurance company’s end means that they’re failing to hold up their end of the agreement, qualifying you to file for a bad faith insurance claim. Since the insurance industry is closely regulated, a certain standard is expected to be maintained for every customer.
Studying and understanding the process behind filing an insurance claim is very important for any adult, as you never know when you might need to file one. The process isn’t that complicated, especially if you have an attorney by your side to help you out with anything you require.
Spending a few minutes researching different insurance claims and how to file them can potentially save you thousands of dollars as the steps are simple, yet very important. Insurance companies covering expensive assets like your car or your house can also try to slip in a few sentences in your contract to avoid paying extra costs, so read your insurance agreement very carefully before signing it.