Summary
Since the 1990s, insurance companies have shifted from fair settlements to minimizing payouts for injury claims.
Highlights
- Shift in Insurance Approach: The 1990s marked a change in how insurers handle injury claims.
- Old Mantra: Previously, insurers operated on the principle of paying what they owed.
- New Strategy: Now, their approach is to “fight everything” to reduce payouts.
- Medical Bills Disputed: Claims of medical expenses often lead to disputes over amounts.
- Pre-existing Conditions: Insurers frequently cite pre-existing conditions to deny full responsibility.
- Goal of Insurers: The primary aim is to pay less, not to provide fair compensation.
- Importance of Presentation: How claims are presented significantly impacts the outcome.
Transcript
Beginning in the 1990s, there was a massive shift in the way the insurance industry approached injury claims. Their old mantra was, "Pay what you owe, nothing more, nothing less." Since then, their mantra has been, "Fight everything."
So, if you submit $5,000 in medical bills and lost wages to them and ask for a settlement offer, their first line of defense is, "Your care shouldn't cost $5,000. We’re only crediting $2,800 of it. Your doctor's bills were too high. Looks like you had some pre-existing arthritis, so we don’t believe all the medical care was due to this car crash. It’s probably care you needed anyway."
They’ll say anything to undermine the case you present to them because their ultimate goal is not to pay fair value—it’s to pay less.