Car Insurance Secrets

You Are Not Insured For Anything!

You may think you are. You may pay good premiums to a well-known company that has a "great financial rating." But if you make a large claim, odds are you will be lowballed to half or less, if you are paid at all. Your car may be sent to an insurer-owned shop that does dangerous or shoddy work, to save them money. You've heard of predatory lenders? Insurers are even more predatory. They will find every trick in their fine print to pay slow, pay low, pay nothing, or drag you through seven years of courtroom hell if you sue. After that, should you prevail, your award is very likely to be reduced  to small change, or even denied on appeal.

Insurers win 70% of appeals and they always appeal. Reveal this quote or see Trips for Judges to find out why insurers win so often. Besides having thousands of top lawyers and being "litigation machines," they give appellate judges free trips to lavish resorts. Judges also receive huge "speaking fees" for addressing bored company officials. It's "legal" but it stinks.

Then What Can I Do To Protect Myself?

State Insurance Commission: Not likely. Think "bandaid." Many people naively think the government will step up to bat for them. Think again. Most state insurance commissions are weak, or sympathetic to insurers, not taxpayers. Their investigative task forces are often funded by insurers - a direct conflict of interest. They have been weakened by state legislators who get millions from the industry. Many of their employees are industry retreads. The fines they levy, insignificant compared to company profits, do not reimburse the claimant - they only go into state coffers. Insurers laugh at insurance commissions and they are usually no help at all. Having reviewed thousands of cases, we know this as fact. Also, the insurance commission will refuse to even hear you if you have already filed suit.

A lawyer: The minute you hire a lawyer, the insurer puts their own lawyers on the case. They are trained to stall, play games, and appeal forever. The best thing is to win your claim without a lawyer. A lawyer may take forty percent of a claim that has already been reduced on appeal, but guess what - you are taxed on the full amount, before the lawyer's fee. You may end up with enough to buy a mo-ped after years of torment. Those big awards you read about in the papers are before appeal, fees, and taxes. The media seldom publishes what the victim finally gets.

The Real Solution - Prevention: As they say, it's worth a pound of cure. There are certain things  you need to know before you file a claim, during the claim, and after the claim. Insurers will pull tricks at each phase. You need to know how to fill out their forms and answer their questions. You need to know what to say and what to do if they investigate or insist on a hearing. If you do it right, you avoid lawyers, courts, and lowballs - and greatly increase your chance of prevailing.

How Do I Prevent Trouble? 

Read our books: Knowledge is power. Our books will show you how to make a good claim and keep it safe, from day one until you get your check. Rest assured your insurer will pore over the policy fine print for loopholes, have you investigated, or even change the policy if you didn't keep a copy. They will question every single detail and accuse you of fraud for the slightest contradiction. A simple slip of memory on one item can be used as a pretext to deny or invalidate your entire claim. Provable records and consistent claim practices are essential. They may be out to get you, but like all big organizations, they have a system; if you know it you can beat them at their own game.

Consult: We know one claims advocate who has a success rate over 90%, while lawyers are under 50% and charge three times as much. She was the chief claims adjuster for a major insurer, so she knows all the ropes. Preventive knowledge is best, but if there are still problems, we also have years and years of experience in helping you every step of the way.

So Protect Yourself: Ask around. Ask your friends. Nearly everyone has an insurance horror story or knows someone who does. Please don't be one of  those stories. The rest of this site is designed to open your eyes and show you how to survive an insurance claim. Learn what to do so you won't regret it if disaster strikes and you find your "friendly" insurer isn't so friendly after all. (Agents have nothing to do with claims. Your agent may be the nicest guy in the world, but please don't rely on that.)

Finally, Two For The Price Of One:

Whether you are an individual or running a business, you must be prepared for two disasters. The first is when a disaster strikes. The second is when you deal with your insurance company. Be prepared. The books at left and the links above will get you through the fight.