Insurance Policy Loopholes Becoming More Common

May 20th, 2010 by Farhan Naqvi in Personal Injury

Most insurance policies are written in tough-to-understand legal jargon which can frustrate residents of Summerlin, Las Vegas, Clark County, etc. But you need to understand what is in your policy because what is says, and does not say, could play a major role in the compensation you receive (or not receive) after suffering a serious injury from an accident.

The trend nowadays is insurance companies slipping tough restrictions and exemptions into that hard-to-understand language of their policies. There are many instances where the restrictions and exemptions are contradictory to the type of insurance coverage being purchased, and in some cases, make your coverage virtually worthless. You could argue that these policies are basically profit engines for the insurance company.

There are two common scenarios where someone finds themselves covered by a “near-worthless” insurance policy. The first scenario, and growing in commonality, is purchasing insurance online. This is extremely convenient and could save you some money initially, but you could be deprived of all the intricate details in your policy. The second scenario is actually speaking to an agent, but the agent fails to give you all of the facts and slips in very important provisions in the “fine print.”

Take, for example, Uninsured and Under Insured Motorist (UM/UIM) coverage. Many people believe when they purchase UM and UIM coverage that if they are seriously injured by a hit-and-run driver or someone who does not have adequate insurance, they will be compensated through this coverage. However, some insurance companies are starting to restrict and exclude certain situations and circumstances from this type of coverage. A common restriction starting to appear is coverage only applies if you are involved in an accident in your car, not a friend or relative’s car. This is despite the fact that most people believe they will have UM and UIM coverage regardless of what vehicle they are in at the time of the wreck.

If you’ve been seriously injured in a car accident, truck wreck, or any other accident  and are having trouble with your insurance company, give me a call right away. I deal with insurance companies on a daily basis and understand how to combat some of their common strategies to reduce or deny your injury claim.


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