Insurance companies have mastered the art of convincing people they need insurance. Whether it is auto, home, health, or another form, the message is clear: You need this protection. Without it, you are exposed to risk. You are practically forced to get insurance for your car, house, and even your health, often at high monthly premiums.
But here is the kicker: once you actually need to use your insurance, you are told that filing an insurance claim could raise your rates. In essence, they take your money to protect you, but when you need them most, they warn you to back off. It is a frustrating and ridiculous situation that puts consumers in a tough spot.
The Insurance Trap: Protecting Profits, Not People
So, why do insurance companies do this? The answer is simple: profit. Insurance companies profit by collecting premiums and not paying out claims. The longer they can keep your money and avoid paying you, the better it is for their bottom line. This creates a system where people are afraid to file claims. They fear a rate increase, even though they have been paying for years.
This fear is not unwarranted. Insurance companies often raise premiums after you file a claim. Even legitimate claims lead to higher rates. This creates a culture of anxiety around the thing that was supposed to protect us—our insurance. You are penalized for using the service you pay for. This makes the entire process feel like a scam.
The Consequences of Avoiding Filling an Insurance Claim
At Fielding Law, we see clients hesitate to open claims because they fear an increase in premiums. This is where the insurance industry’s double standard shows its ugly side. People pay premiums for years, sometimes decades, only to find out the protection they were promised is not easily accessible.
Avoiding claims can lead to financial and physical consequences. If you do not open a claim after an accident or injury, you risk your health and finances. Medical bills pile up, and without proper compensation, you could end up paying for something that was never your fault.
The Bottom Line: Use Your Insurance, Do Not Let Them Gaslight You
At Fielding Law, we want you to know that you should use your insurance when you need it. You have already paid for that protection, and you deserve to be covered when something goes wrong. Do not let the insurance industry scare you into believing that using your benefits will result in outrageous rate hikes or worse. If your insurance company tries to penalize you for filing a claim, you have rights. We are here to fight for them.
Understanding Your Legal Rights in Insurance Claims
When it comes to insurance claims, both California and Arizona have laws in place to protect consumers from unfair rate hikes after filing a claim.
In California, Prop 103 and Insurance Code § 1861.02 provide important protections. Under Prop 103, insurance companies are prohibited from raising premiums due to the filing of a claim unless the claim is for a specific type of loss or risk. This helps prevent insurance companies from unfairly penalizing you just for using the coverage you’ve paid for.
In Arizona, the law under A.R.S. § 33-931 ensures that an insurance company cannot cancel or non-renew a policy, or increase premiums due to the filing of a claim in certain situations. This law is designed to protect policyholders from being punished for needing the protection they’ve been paying for.
Why Hire Fielding Law?
At Fielding Law, we help individuals who have been injured due to the negligence of others understand their legal rights after an injury. Whether you are dealing with mounting medical bills, missed work, or pressure from an insurance company, our attorneys are here to guide you. Do not hesitate to reach out if you feel you are being unfairly penalized for filing a claim. We will help you navigate the legal process and fight for the compensation you are entitled to.
Contact us at 833.88.SHARK and let us make sure you get the justice and compensation you are entitled to.
Note: Information provided is for educational purposes and does not constitute legal advice. Always consult with a qualified attorney for legal concerns.
