Many people have the misconception that insurance companies exist solely to help them when help is needed. However, insurance companies are for-profit entities that are in business to make money and maximize profits rather than paying out millions to claimants each year. While it might seem like the amounts involved in losses from a single car accident are minute compared with the billions of dollars that insurance companies take in every year in premiums, insurance company executives view claims that they have to pay in the aggregate. This means that insurance companies consider individual claims dispassionately, thinking about them in terms of profit and loss rather than in terms of the impact on individual people.
Insurance companies may try to reduce the amounts that they will ultimately be forced to pay in settlements. In some cases, they may dispute or deny claims outright even when the liability of their insureds appears clear. It is important for you to recognize the common strategies that insurance companies often employ in an effort to reduce or avoid paying settlements so that you can take steps to protect your rights to recover damages for your losses.