Auto Insurers: How They Bring in Those Billions
Insurance companies are some of the richest corporations in the US, exerting considerable influence on the economy as they bring in billions of dollars in profits each year. These massive companies also wield an impressive amount of power. While that is not surprising when you consider how the world of economics and politics—and money—work, it can be a jarring experience when the insurance company directs their power at you, denying payment for a claim that was obviously valid—leaving you hanging—until you consult with a firm like the law offices of Andrew ‘Pike’ Piekalkiewicz, PLLC and have true legal expertise on your side, with an experienced attorney acting in your best interest.
Insurance companies are set up to make money from their policyholders who purchased premiums to protect their assets. As the policyholder, you may pay out tens of thousands of dollars or even more over your lifetime, paid directly to insurance companies, without ever once considering that they might not keep up their end of the bargain when you need them. You may have an insurance policy for your home, one or two (or even more) cars as your family grows, your business, liability insurance for your professional life, and health and life insurance.
If you have a claim, and it is a substantial one, the insurance company could feasibly lose money on your policy over the long term, but the fact that they did not have to pay out on claims for so many other policyholders makes up for that. And basically, if you pay them faithfully and never have a claim, then you represent a windfall to their company. All they had to do was take your money, service your policy, and watch their own interest accrue, and their accounts grow fat. This is all a great explanation of how the insurance company makes copious amounts of money legitimately, however, there is more to the story.
Unfortunately, some insurers do not play by the rules, and may collect your premiums, but do not want to let their cash go once you file a claim. For some companies, it may be a matter of just giving policyholders an extremely hard time before they will pay a claim, under the guise of being extremely diligent about investigations, but others may be accustomed to practicing bad faith. The more that a duplicitous company continues to practice bad faith without being caught or without being substantially penalized, the richer they continue to get—and the worse they treat policyholders. This could potentially be catastrophic to your own finances if you have been in a car accident, for example, and have bills piling up left and right.
If you are concerned about bad faith practices, do not go it alone! Please call the law offices of Andrew ‘Pike’ Piekalkiewicz, PLLC as soon as possible at (713) 748-7453 or visit AttorneySgtPike for a no obligation case review.