If you’ve ever been involved in an Illinois car accident, you may know quite a bit about dealing with car insurance companies. Without car insurance, most people would not be able to afford the car repairs and/or medical bills that result from the collisions they cause. That’s why the state of Illinois requires all drivers to carry at least a certain amount of insurance coverage.
To get a better understanding about how car insurance works, it may be helpful to examine how car insurance companies make their money. There are two basic monetary functions that insurance companies perform: collecting premiums from customers and paying out claims in car accidents.
When you think about the insurance premiums you pay, it may seem unclear how these insurers ever turn a profit. After all, if you pay $100 a month to an insurance company but get involved in an accident which requires your insurance company to pay out $10,000, you may wonder how these firms stay in business.
They do so because of a concept called shared risk.
- Shared risk – if they can get 101 people to pay $100 month and not file an accident claim, then the insurers will still make money even if they pay out your $10,000 claim. Insurance companies are constantly adjusting customer premiums (and maximum claim payout amounts) in order for this shared risk formula to work in their favor.
But in addition to tweaking how much money they receive through premiums, insurers also boost their bottom line by minimizing the amount of money they pay out in claims–and they use some questionable tactics to do so. This concept is extremely important to keep in mind if you ever have to deal with an insurance company regarding a claim. Because despite all of the marketing about how insurers will strive to get you a “fair settlement,” they won’t make money by parting with funds that they don’t have to. This is why an insurance company may often try to give you a “lowball” settlement offer for your insurance claim – or deny the claim altogether.
It is these situations where having an experienced Illinois car accident lawyer is extremely advantageous. These lawyers know insurance company tactics utilized to reduce how much they have to pay on a claim.
Insurance companies see bulls eyes when they deal with lawyers that “dabble” in auto accident cases.
The hard truth is that insurance companies make money by not paying out money for claims or lawsuits. So when they see an attorney whom they aren’t familiar with handling an auto accident case, their mouths begin to water. Insurance companies are well versed in tilting the odds in their favor because they are intimately familiar with how the auto accident litigation process works. It takes an experienced auto accident lawyer to call their bluffs and hold them accountable. Insurers know who these lawyers are—and they won’t be able to push them around.
A qualified Illinois car accident attorney will fight on your behalf to get you every dollar to which you are entitled from an insurance company – even if that means taking the insurer to court in the process.
For close to 20 years I have been taking on insurance companies. I have personally witnessed many tactics, some which I find incredibly misleading, used by insurance companies to minimize your settlement.