Insurance Companies: Friend or Foe?

Insurance policies are unlike any other commodities that a consumer will purchase, and thus the companies that issue them are unlike other businesses. Policyholders are either compelled to obtain insurance coverage by state law or choose to seek the policy to protect against potential financial losses incurred by future accidents. They enter into these contractual agreements with their insurers under the impression that they will be quickly and fairly compensated in the event of the covered calamity. This is misguided, however, because insurance companies are devoted firstly to securing their own profits.

If you have been the victim of insurance fraud or have encountered unexpected and baseless denials of benefits, then you are unlikely to gain any ground with an insurance company on your own. Let us help you to seek the compensation that you are rightfully owed. Contact the Phoenix personal injury attorneys of Haralson, Miller, Pitt, Feldman & McAnally, P.L.C., at 800-763-0964.

Following the Money

Part of the reason for this imbalance of power is the business model of the insurance companies. Policyholders make regular premium payments that are based on the level of coverage that they have obtained, the kind of insurance policy, and the degree of risk that the insurance company believes it is taking by issuing the policy. Then the following sequence typically occurs:

  • The insurance company places some of the money into accounts
  • Some of the money is invested in the hope of increased returns
  • Benefit payments are issued from the combined premium payments and investment returns

The insurance companies’ profits depend upon issuing the least amount of benefit payments while taking in the greatest amount of premiums, giving them plenty of incentive to seek to minimize the benefits that they issue.

Contact Us

In the aftermath of an accident, you should not have to worry that you will not be properly compensated. Contact the Phoenix personal injury lawyers of Haralson, Miller, Pitt, Feldman & McAnally, P.L.C., at 800-763-0964 to learn more about your legal options.

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