It may be hard to believe, but did you know that insurance companies in America make a staggering $1,000,000,000,000 annually from premiums alone, according to the American Association for Justice (AAJ)?
While some insurers genuinely have their client’s best interests at heart, knowing how to spot a bad insurance company is crucial. They might initially exhibit small signs, like lackluster customer service, but then progress to rejecting genuine claims, denying necessary coverage, and jacking up premiums more than needed.
At Angel Reyes & Associates, we believe in empowering our clients with knowledge about the insurance industry. Here’s everything you need to know.
So, What is the Worst Insurance Company?
A recent report from 24/7 Wall St., a financial news and opinion company, has seemingly identified the #1 most hated insurance company in America.
You know we are simply too nice to name names, but we are here to share this crucial information so you are fully aware of how to avoid a bad insurance company and deal with one if you’re in that unfortunate position. It is essential you understand your rights when dealing with an insurance company that has earned such a negative reputation.
5 Common Reasons for Customer Dissatisfaction with Their Insurance Company
The less-than-stellar reputations don’t materialize out of thin air. So, what makes an insurance company bad?
Well, they tend to face criticism for many reasons. Most importantly, no insurance company is ever truly on your side. Insurers will use proven, sneaky tactics to try and force you to settle for less than you deserve. Here are a few key things to be aware of when dealing with a potentially bad insurance company:
- Denied Insurance Claims
Perhaps the most effective and detrimental tactics insurance companies use to their benefit is the denial of insurance claims. When these denied insurance claims become frequent or unjustified, it can greatly frustrate unsuspecting policyholders.
Some of the worst insurance companies deny up to one-third of their claims – which is crazy!
It is important to be aware that your insurer is required to provide you with certain information in writing when they deny your claim:
- Information regarding your rights to an appeal
- The specifics of why your claim or request was ultimately denied
- Comprehensive instructions for submission requirements
- Important deadlines for submitting your appeal
- Availability of a Consumer Assistance program when available
- Delayed Payments
It can be devastating to watch your bills pile up while your insurance company takes their time slowly processing your claim – which can cause extreme financial strain. These companies will prey on folks while they are down, knowing you’ll be more likely to settle for less when dealing with financial pressure.
Working with a skilled, professional attorney can help mitigate this issue, as they will help you speed up the process and stand strong under the financial burden your insurer is inflicting upon you.
- Poor Customer Service
There are few things in life more frustrating than poor customer service. Lack of responsiveness or unhelpful representatives at an insurance company can sour customer relationships – earning their reputation as a bad insurance company.
- Complex Policies
Insurance companies will rely on difficult-to-understand policy terms to confuse their clients, leading to misunderstandings and disputes. These complex policies utilize language not designed to be easily understood by the average consumer. You need to ensure you know the details of your policy to avoid lapses in coverage and avoid denied insurance claims.
- Premium Increases
As with anything in life, we can expect prices to go up on our insurance policies. However, bad insurance companies tend to dole out frequent, unexpected, and significant increases in premiums without clear justification for their customers.
The Staggering Impact of Denied Insurance Claims on Consumers
When an insurance company gains a negative reputation for poor service or unfair practices, it typically is not unfounded. They may have a strong tendency to deny claims, which can cause customers financial stress and out-of-pocket expenses, health consequences due to delayed treatments, and property risks for home and auto insurance claims. Ultimately, this can all take a huge emotional toll on anyone dealing with the stress of working with a bad insurance company.
The Importance of Awareness and Protecting Your Rights Against a Bad Insurance Company
If you find yourself in negotiations with the bad insurance company named in the 24/7 Wall St. report or any insurer you believe is treating you unfairly, it is important to remember to always:
- Know the ins and outs of your policy
- Document everything, including all communications and claim-related information
- Be persistent, even if your initial claim is denied
- Seek help from a skilled attorney who can advocate on your behalf
Reports like these aren’t intended to cast blame needlessly. Instead, they encourage transparency in the increasingly complex insurance industry, which helps consumers make more informed decisions and puts pressure on bad insurance companies to improve their poor practices.
If you’re currently insured with a company that you’re not happy with, but you don’t want to switch to a new company – consider appealing your denied claim. When your insurer refuses to pay a claim or threatens to end your coverage, you have a right to appeal the company’s decision and have it reviewed by a third party.
Angel Reyes & Associate is Here to Help
Anytime you have to deal with a bad insurance company known for poor customer satisfaction, the issues that arise can be overwhelming. However, you are not alone. Research shows that if you hire a skilled attorney to help win your case, you are likely to receive 3.5x more than you would if you tried to represent yourself. The compassionate team at Angel Reyes & Associates is fully committed to helping you navigate these challenges with skill and empathy.
Don’t wait, don’t hesitate. Contact us today for a free consultation, or stop by one of our offices in Dallas, Fort-Worth, Houston or Austin so we can discuss your case face-to-face. You’re in good hands with Angel Reyes & Associates.
