Originally Posted by
philbob57
Are you arguing with the reason (to increase profits) or with the proposition that insurance companies work hard to minimize payouts? No matter what the reason for minimizing payments, the results show up in the P & L.
Consider:
In 1966, I was hit from behind while stopped in traffic. $1800 in damage, $1200 offered by the insurer.
A friend's car was totaled. The insurer offers the wholesale 'FMV' for the car to the victim and refuses to include sales tax. Tells the victim to sue if he wants more than the offer.
Many of us can go on and on with examples of insurance companies trying to minimize their payments. How many insurers go to jail for minimizing payments?
None. They don’t minimize payments, and they don’t use “go to court” as a negotiating tactic. Lawyers do, but insurers can’t.
If you were offered $1200, there was a basis for it. Unlike people making demands, carrier offers are regulated. Greed is a bad thing.
If the friend’s car was totaled, the offer was based on supporting documentation, period. Your friend would likely have lost in court, once the evidence was heard. Every offer is presumed to end up in court. Ignorance of the process is about the only reason any property damage claim ends up in court. The jury instructions are what the statutes call for, and rarely do they increase any previous property damage offer.
The “going to court” thing is common among people who embrace victim mentality as an entitlement. Every time an offer is declined, it’s off the table. A generous offer, refused, is almost always less than the jury award in a property damage claim.
You may have examples, but no supporting documentation. Everyone wants more. Everyone. Carriers are regulated, statutes govern their behavior, evaluations, and adjusters, especially property adjusters, are rated based on accuracy.
What you don’t hear too often is “they paid me more than I would have paid for it, 5 minutes before it was hit.” That’s quite true, though, based on a lot of research. Our market system is based on buying lower than selling; we’ve been taught that from an early age. The same thought process applies when we think someone owes us something.