Your Wealth, Health, And Lifestyle Newsletter

How To Avoid Getting Ripped Off By Your Insurance Company

By Jason Markum

Insurance is a fact of life for everybody in America, and probably everywhere else to! We pay and we pay and we pay on insurance policies all our lives and we expect them to pay out in the event that something happens to us.

If we paid for health insurance, we expect our medical bills to get paid when we need them to be. If we paid for auto insurance, we expect them to pay if we are in a car wreck. And if we buy homeowners insurance, then we expect them to pay if something happens to our house.

But if you’ve ever dealt with an insurance company, then you know this isn’t usually the case! Insurance companies love to take your monthly payments, but they hate to pay out a single penny. Think about it, every dollar they pay out is a dollar they don’t have anymore! And nobody, and no company, likes to give away money.

You see, when insurance companies sit on the float (which is what they call the big pool of money that people have paid in via insurance premiums over the years) they start to look at that big pool of money as their own even though it’s not technically theirs… it’s yours!

So for instance if you have a car accident, the insurance company is going to pull out all kinds of tricks in order to get you to accept as little money as possible. The first thing you must understand is that you hold all the cards. If they offer to give you $1,000 and you take it then you have decided to take that money. It doesn’t necessarily mean that that is all you were entitled to…

If you have full coverage on your car, and your car was destroyed by somebody else crashing into you, then you’re entitled to your car. They must give you what is necessary for you to purchase an exact copy of your car.

They may tell you that the blue book value is a certain amount. Tell them you don’t care what the blue book value is! There’s no rule that says you have to use the blue book value. If you see a car in a car dealer’s lot that is the exact car that you owned, and the dealer is selling it for $10,000… then it doesn’t matter if the blue book value of your car is only $7,000. It’s gonna take you $10,000 to buy that car and that’s what the insurance company should pay you.

But that’s not all you’ll also have to pay title, taxes, closing fees, and many other weird little fees when buying a new car. You’re insurance agency must pay for that stuff too! And those figures are never calculated in a blue book value.

But I’m getting off track here. The main thing to remember is that you hold all the cards, and what you say goes – not the other way around. If you simply refuse to accept what the insurance company is offering and hold out for what you know you deserve, at the end of the day there’s not much the insurance company can do but to do what you’ve told them to do.

They’ll try everything, remember that. All you have to do is nothing. Don’t sign anything, don’t agree to anything, just tell them that you require X dollars and then just keep repeating that over and over whenever they say anything just repeat that you require X dollars. That’s it!

And if all else fails, trot yourself up to a local attorney and tell them to take care of it… and make sure the insurance company pays your attorneys fees as well!

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