If You Think Car Insurance Benefits are Easy to Claim, Think Again

May 15, 2016 by

Carrying car liability insurance is just one of the ways drivers can show that they have the capability to compensate those who they may injure in accidents wherein they are at fault. In the states of New Hampshire and Virginia, drivers are allowed to choose any state-approved way of showing financial responsibility as an alternative to carrying auto insurance.

Carrying car liability insurance was first made compulsory in 1925, with Massachusetts and Connecticut as the first two states to impose it on their drivers. Having auto insurance was made compulsory for three reasons: first, because there were signs which said that cars will crash (probably due to mechanical defect or driver negligence); second, as cars crash, someone is more likely to get injured, besides properties getting damaged; and, third, which is also the most important reason, to help drivers who are at fault in accidents cover cost of damages to victims and never default on making compensatory payments. Now called the Financial Responsibility law, this mandate is directed to anyone who wants to have driving privileges in the U.S.

Payment of compensation depends on the type of liability system that is recognized in the state where the accident occurred. In “tort” or “fault” states the victim is compensated by the at-fault driver’s insurance provider; in “no-fault” states, however, both drivers are compensated by their own insurance providers regardless of who is at fault in the accident.

It is but natural for drivers who diligently pay their insurance premiums to expect financial protection from their insurance provider in the event of a car accident. According to the website of law firm Ravid and Associates, however, so many claimants end up having disputes with insurance companies when it comes to payment of compensation or amount of compensation that needs to be paid.

This very same concern is pointed out in the website of the Des Moines car accident lawyers at LaMarca Law Group, P.C., which says that receiving adequate compensation from an insurance company often becomes a needless hassle. This is because there are insurance firms which attempt to engage in a number of deceptive behaviors in order to prevent accident victims and/or drivers from receiving the financial benefits that are due them. Some tactics employed by firms, include:

  • Pressuring victims and/or drivers to take a quick, but unfair settlement
  • Offering victims and/or drivers inadequate compensation
  • Attempting to deny victims and/or drivers compensation altogether

The last thing an accident victim needs to be involved with, as the Sampson Law Firm website says, is haggling with an insurance company that is refusing to honor its obligation to compensate (the victim).

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