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How Insurance Companies Exploit Customers

How Insurance Companies Exploit Customers

You may not be thinking of changing your car insurance provider because you have been with them so long and you are happy with your coverage. If you have noticed the cost of your insurance rising, you may be scratching your head because you feel like a loyal customer that should be given some forgiveness or discounts.

Insurance companies are in business to accomplish one thing, and one thing only, that is to make money. Whether it be by denying claims made against them, devaluing claims, or by steadily increasing costs, insurance companies are skilled at the art of making as much money as possible while losing as little as is workable.

If you have been in a commercial truck accident in Arizona, you undoubtedly suffered severe damages. Commercial truck accidents in Arizona tend to have high settlement amounts because the destruction is so significant. Commercial truck insurance companies, like any insurance provider, will look to find ways to get out of paying victims or getting victims to agree to accept unfairly low settlement amounts. To ensure that you aren’t taken by the insurance company and that you protect your legal interests and are treated fairly, the Phoenix commercial truck accident attorneys at ELG will fight so that your best interests are represented. 

How Do Insurance Companies Take Advantage of their Customers?

How Insurance Companies Exploit CustomersInsurance companies pay big bucks to find out as much information as they can about their clients. They do this by scanning all of the social media a person has and by purchasing their personal data. The information that they can pull from these sources allows them to figure out if you are a person that tends to be loyal to brand names. If they can make the determination that you are one of these individuals, they will try to raise the price of your insurance policy. This system is called “price-optimization” and it is very effective.

Most all of the big insurance providers engage in these tactics with the exception of State Farm and Progressive who have publicly stated that they don’t participate in these strategies. If it can be shown that you are loyal to specific brands, then you could be a prime target for having your rates increased. They will do this and then hope that you aren’t going to be proactive in response by getting quotes from other providers and seeing if any competition could give you a better rate.

If you notice that you are seeing steadily increasing insurance rates, you can contact your insurance provider to ask about it. If you aren’t getting satisfactory answers, it could be very well worth your while to shop around and see if there are better, lower-priced options for similar coverage.

Speak with an Arizona Car Accident Attorney Today

Insurance companies use your personal data to see where they can squeeze a couple more bucks from you and get away with it. They will also scan social media to find evidence that could be used against those that file insurance claims. If you were in an Arizona injury accident, contact the Arizona personal injury attorneys at ELG to discuss your accident experience during a free consultation at (623) 877-3600.