This Is Why Insurance Companies Deny Claims

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This Is Why Insurance Companies Deny Claims

Ever wonder why insurance companies deny claims?

Insurance has always been a very valuable tool for those who don’t have a lot of money behind them. Giving you the chance to put money into a pot which will be there to protect you if you ever find yourself in hot water, this sort of financial product has been around for a very long time.

It can be used to cover cars, injuries, and even your life, making it rare to find someone who doesn’t have it in some shape or form. Of course, though, as time has gone on, it’s become harder and harder for companies to trust their customers when it comes to making claims.

Lying and cheating are part of the reason why insurance companies deny claims

This has come as the result of people seeing insurance as an easy way to get their hands on some money, instead of using it for its intended purpose. People are willing to lie and cheat if it helps them to get what they want out of their providers, often fabricating claims which simply have no grounds in reality.

A great example of this can be found in crash for cash scams, where drivers will deliberately cause accidents to extort insurance companies based on injuries which can’t be disproven. This sort of activity puts tremendous strain on companies providing cover, and has made them very cautious of awarding money when situations seem suspicious.

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Impact on legitimate insurance claims and cost of insurance

Of course, from the point of view of the people providing insurance, it shouldn’t be their responsibility to pay for this sort of crime. Instead, they will simply refuse to pay money if they think that something has been faked.

This leaves drivers out of pocket when they have a genuine accident, it makes insurance more expensive for everyone, and can extend the claims process to unreasonable lengths. This sort of issue doesn’t just happen on the road, though.

Small businesses owners get impacted, with people getting hurt on their premises and claiming it was the owner’s fault. Along with this, almost every type of insurance can be targeted, even when it comes to life cover.

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Dealing with a false claim

If you ever find yourself in the a position where you are having to deal with a false claim, calling the police will be your best port of call. This sort of activity is a crime, being considered fraud in most places, and this means that the law can often step in and make things right.

Of course, though, on the other side of the coin, you could have a completely legitimate claim rejected because the company covering you suspects that you are lying. In this instance, professionals like personal injury lawyers will be the only people who can help you properly. They can fight your corner, forcing a payout, while also retaining your original premiums and keeping you from being subject to discrimination.

Related: How To Protect Your Livelihood If You’ve Been Involved In An Accident

Conclusion: The reasons an insurance claim can be denied center on the scammers

With all of this in mind, it should be easy to see why insurance companies find it hard to offer payouts on the same basis as they did in the past. Trust can’t be an element in these transactions anymore, and people often have to fight for themselves if they want to make a claim. Thankfully, though, there are always people out there who can help you out.

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