Just like other for-profit entities, insurance companies are chiefly concerned with profits. Their policies are not guided by policyholders’ best interests. After all, the fewer insurance claims the companies pay out, the more money they make. Their best interests are served by denying as many claims as possible and encouraging policyholders to accept low settlement offers. These interests are completely opposed to the interests of policyholders who have suffered an injury.
The South Carolina Supreme Court summed up the problem accurately in SC Insurance Co. v. Fidelity and Guaranty Ins. Underwriters, Inc., et al.:
“Ambiguity and incomprehensibility seem to be the favorite tools of the insurance trade in drafting policies. . . . It seems that insurers generally are attempting to convince the customer when selling the policy that everything is covered and convince the court when a claim is made that nothing is covered.”
However, some insurance companies are apparently worse than others. The American Association for Justice (AAJ) undertook a comprehensive investigation to determine the ten worst insurance companies. A popular insurance company was found to have offered its claims adjusters gift certificates, pizza parties, and even portable fridges as rewards for denying claims. Some companies simply rewarded their claims representatives monetarily for intentionally underpaying and denying claims.
Without an experienced Southern California personal injury attorney on your side, fighting your insurance company may be a losing battle.