We are all good citizens. To protect ourselves in the event of an accident, we purchase liability insurance. There are two types of coverage: minimum and maximum.
You are purchasing this insurance to not only comply to the law but also to protect yourself and your assets in the event you cause an accident with a motor vehicle, motorcycle or other motor vehicle.
Let’s suppose you are in an accident and you have to report it to your insurance carrier. You think your insurance company will pay you according to your policy. WRONG!
You will find a lot of confusing language in your insurance policy. In plain English, the meaning of the language is that you accept the insurance policy and agree to cooperate with them if they decide you want to litigate. The insurance company decides whether or not a case will settle.
Insurance companies exist to make as much money as possible and pay as little as possible. Because their coffers are full, insurance companies have been very tolerant since the introduction of mandatory insurance coverage (Proposition 213, California).
They are forcing meritorious claims to be filed in Court to prevent personal injury lawyers from getting a fair recovery. They are well aware that personal injury lawyers don’t have the same amount of money as they do to litigate, so they try to stop personal injury lawyers from obtaining just compensation for their clients. It is ultimately the victim and those who were injured in an accident that are the most hurt. Big business, however, makes more profit.
Insurance companies are able to take advantage of even those who cause an accident and have adequate liability insurance to cover the claim.
Insurance companies are masters at deceit. Insurance companies are experts at deceit. They don’t mention that the Court backlog is because insurance companies haven’t settled claims as they should.
Let’s return to the case of you causing an injury. If the insurance company refuses to settle the case within the policy limits, then you will be taken through the legal system. You might have to answer questions, take depositions and even be allowed to miss trial. It is a lengthy and difficult process you didn’t expect to have to go through when you bought liability insurance. Surprise!
The insurance company will pay the judgment if you lose in court. But guess what? YOU WILL HAVE A JUDGMENT AGAINST YOUR CREDIT REPORT AND IN THE CASES FILE! Your credit rating has been damaged by your insurance company.
Is it fair? It is not fair, I say. The insurance company paid for your insurance. They could have settled the case within the policy limits. Instead, they chose to litigate to reduce the amount they have to pay so that they can keep their profits high. They didn’t care about your credit history or if your name was in the public record as a judgment against them.
Some insurance companies employ outside lawyers, while others have in-house attorneys. They are expected to act in your best interests and have a duty. They do what is best for the insurance company. This is the greatest conflict of interests. The attorney the insurance company employs to represent you ethically has a duty to you and not to the company. In reality, the insurance companies give the attorney his marching orders.
The recent Hurricane Katrina catastrophe is a terrible example. You’ve probably heard about the misery of poor people because their insurance companies don’t cover them for the insurance they purchased.
America and its consumers need to stop complaining and start looking for the good things in life. It’s not the trial lawyers that are the problem. It’s big business trying to make more money at the expense of the small guy. This has become a political issue for some. I’ve heard President Bush talk about Tort reform and blame the trial lawyers for our health care woes.
You are about to get screwed if you read tort reform! If you are denied your right to damages compensation in Court of law, you’ll be the one who suffers, while the big business will make a lot of money!