Sunday, October 11, 2009

A Few Words can make a Big Difference

By Rico Setyo

The phrase “anything you say can be used against you” is not only relevant in the situation where a police officer catches you near the scene of a crime but it is also relevant when you file insurance claims.

An insurance claim is the actual application for benefits provided by an insurance company. For those who have insurance must first file an insurance claim before any money can be disbursed. Based on the insurance company’s assessment of the circumstances they may or may not approve the claim (Pollick).

One instance where words become an issue to insurance companies is when you get into a car accident. If either party of the accident apologizes, the claim becomes invalid for a couple of reasons. First reason is an apology can be and will be seen to insurances companies as taking the blame for an accident. Second reason is because you are claiming fault in the situation, the insurance companies do not have any reason provide monetary assistance or repairs to your car. Many people have the tendency to apologize even though it might not even be their fault but because of this natural instinct to apologize, many insurance companies are taking a “few words” to their advantage (Ong). The best thing to do is just to stick to facts without expressing any opinion (LawCore).

JD Howard, who is a founder of an insurance company in Springfield, Mo. States that over the years the philosophy of insurance companies have changed and gone more corporate. From “having a mandate” to pay our clients, to finding every possible reason to not pay our clients, the change is drastic. Many people spend thousands of dollars of insurance and a few simple words can determine whether you get insured or not.

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