Insurance companies have a number one goal, and that is to reduce (or avoid altogether) paying money to their policyholders. They use many different tactics to try and reach this goal and they have been very effective so far in doing so. We’ll go over some of these tactics and give you real examples on how this is being done everyday.

Push customers to be afraid of making a claim when then are in an accident
How often do you hear people say ‘Oh, I don’t want to make a claim, I’m afraid my rates will go up!’ That is EXACTLY what the insurance companies want you to think. Insurance companies will try very hard to make you feel that if you make a claim you are giving them a reason to up your rates.  Every month we pay for auto insurance, that money pays for a service and they try to make you afraid to use that service. This ‘fear factor’ has been used for quite some time and is very effective. The truth is that your insurance rate will go up for two reasons: One, if you are at fault in an accident.  Two, if the insurance company raises everyone’s rates.

Car Insurance Companies Biggest Problem
The absolute most important thing you can do if you are a victim of an auto accident is speak to an attorney as soon as possible. We cannot emphasize how extremely important this is. Bottom line is this; if you call you insurance company they have one goal in mind – minimizing their loses. They work for that goal and that goal alone. After an auto accident is typically a traumatic time with a lot going on, people are often times scared and unsure on the best action to take. Typically the insurance agent will speak to the victim and try and get them to settle the claim very quickly (for less money) and even recommend they do NOT speak to an attorney. The car insurance companies try very hard to get the accident victim to settle without a lawyer because they typically pay out much less if an attorney is not involved. Again, this is their goal – to keep as much of their money as possible.

Now let’s look at what an attorney can provide. An experienced auto accident attorney knows exactly what to expect and how to fight for maximum results. There is no question about it, car insurance companies will typically always make a low offer. Many times their offer is so low it may not cover all your losses including medical bills, lost wages, pain, suffering, future medical bills and inconvenience caused by the negligence of another. Car accident victims typically feel pressured by their adjuster and because of the stress of having been involved in an accident they may not know all their options. Our main purpose of this web site, and our law firm’s main purpose is to help people after a traumatic experience and come out as best as possible. Our firm works for you, not the insurance company. Our only goal is to help you get the highest payout you deserve. Their goal is to get you the lowest. We know their techniques – most importantly we know how to fight against them.

That brings us to an interesting book about Allstate insurance. The book is called ‘From good hands to boxing gloves’ and describes how Allstate wanted what most big companies want, to increase revenue. Allstate Insurance Company hired in the mid 90’s McKinsey & Company, the world’s largest consulting firm to help with their problem. McKinsey & Company quickly discovered that when Allstate paid accident victims, they paid much more when an attorney was representing the victim. McKinsey’s strategy was to contact the injured victim immediately after the accident and become their friend so that the injured person would not obtain or even think about obtaining an attorney.  Ten years later, almost all insurance companies have adopted the tactic of “becoming your friend.”

Remember, when talking to an attorney, it won’t cost a thing.  If you talk to the insurance company first, it may cost you everything.