For sure, car insurance and car insurance companies are a necessary evil. You would be foolish, and in this state illegal, to operate a motor vehicle without insurance. In the event of an accident, and in particular a major accident, you need the insurance coverage to pay for your property damage to your car and to compensate you for your injuries and lost time from work. But make no mistake about it, insurance companies exist to make money, a profit. And the primary way of doing so is to take in premiums and limit how much they have to pay out. This means that at the very time you need them, you may find yourself fighting with them to get what you deserve.
I recently had a client who was struck by another driver. It was very clear that the other driver was responsible. But a few days after the accident, the adverse driver’s insurance company sent my client a very small check for what she understood was to replace her child’s car seat. On the bottom of the check they included the phrase “Payment in Full for Bodily Injury Claim”. Now, my client had not even filed a bodily injury claim at that point. Nevertheless, when she did hire an attorney to file such a claim, the insurance company pointed to that first check and told her that in cashing the check she was relinquishing all further claims. In other words, they were trying to take advantage of her. Unfortunately, her first lawyer did not understand this and dropped the case. I was able to restart the claim and succeeded in getting her the full value of her claim.
So the next time you hear you are in good hands with…, or we’re on your side…, remember, they are in the business of making money. Hopefully your interests will align with theirs and everyone will be happy. If not, that’s when you need an attorney.
This story has been told by judges and family division masters in Montgomery County many times but it bears repeating. A couple stands before the judge in a highly disputed child custody case. The judge turns to the mother and says, “Ma’am, do you love your child?” To which she replies, “Of course I do!” He then turns to the father and asks the same question. “But of course I love my child.” The judge turns to them both and says sternly, “Well I do not. Why in the world you would want someone like me making decisions for you and your child is beyond me. Now go outside and try to work this out between you like adults and parents or else I am going to make a decision that I guarantee you neither will be happy with.”