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08/29/2019

The insurance company scam revealed – Part 1

Written by Brian

Imagine you went to buy an ordinary consumer product. Let’s say you want a toaster. You purchase a toaster for fifty bucks and go home looking forward to toasting some bread for your next sandwich.

Now imagine that you have to pay the company that makes the toaster every month on a subscription basis to keep using the toaster. Let’s say you’ve got to pay $5.00 a month to keep the toaster working and making toast for your sandwiches. You get home and you’re ready to make your first piece of toast. You pull out your slices of bread, insert it into the toaster. You press the lever. Stomach grumbling, ready to bite into a toasty ham and cheese.

But instead of a toasty ham and cheese, you get a message on your phone toaster app that your toaster subscription price just went up. Instead of paying $5.00 a month, you’re now paying $6.00 a month. Imagine if every time you wanted to use your toaster, the toaster company increased the price. And imagine if after you third or fourth piece of toast, your toaster just stopped working.

That’s how liability insurance company scams work.

Insurance companies are not your friend. They will never be your friend. Insurance companies do not care about you. They work actively against you most of the time, whether it’s your own insurance company or some other insurance company you’re trying to collect against. The liability insurance industry spends hundreds of millions of dollars trying to convince you that “you’re in good hands,” or use funny lizards or annoying spokespeople to pitch their products.

It’s all nonsense.

The business model for insurance companies is simple. You pay them money, they make promises to pay you under certain conditions, they take your money and invest it in the stock market (called the “float”), and then when you make a claim they try as hard as they can to pay as little as possible. Then they get back whatever they pay you by increasing your rates.

It’s the only product in the world where you get charged regularly when you don’t need the product, and then you get charged more when you use the product, and then you lose the product entirely if you try to use it “too much.”

Insurance tricks revealed

In the coming weeks and months, I will be writing a lot more about the way insurance companies trick and deceive their customers. How the insurance companies spend billions of dollars on pure propaganda advertising to try to convince American citizens that they have our best interests in mind, and a lot of other things I’ll reveal about how the insurance industry actually works.

Here’s why I’m doing this. Vuk and I have battled Big Insurance on a daily basis for 20+ years. (I even represented insurance companies for the first two years of my practice – I got out of that racket as soon as I could!)

We’ve seen every trick and scam in the book. Lately, though, the insurance companies are getting more obvious and brazen about their approach. We have cases right now where it is brain-dead obvious that the insurance company should pay our client. Completely obvious. And yet the insurance companies refuse and make us fight them to the bitter end (which we happily do, and we beat them just about every time).

My main objective in this series of articles is education. Information is power. I want to educate you so you aren’t at an informational disadvantage. I have seen too many people get taken to the cleaners by Big Insurance’s tricks, traps, scams, and outright falsehoods.

I think what you’ll read about in the next weeks and months will help you make smarter decisions, evaluate insurance companies and their tactics more openly and honestly, and avoid getting taken to the cleaners by bad behavior.

In that regard, if you have any insurance company horror stories, please comment with a brief description of your story and I will try to incorporate it into the series I’m working on over the next few weeks and months.

 

Brian Beckcom

08/29/2019

One Thought on The insurance company scam revealed – Part 1
  1. I agree 100%. Insurance is such a scam. You can go 5-10 years with no accident in your car but that on fender bender in a parking lot can hike your monthly payments $200, even if there’s no proof it’s your fault!!!
    I wonder how the individuals that work for these companies handle their own insurance. Do insurance employees receive the same scam jobs we do and just accept it because it’s where they’re paychecks come from or do they get the best rates and get to keep those good rates despite the fender bender?

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