Yesterday we talked a little bit about how the insurance companies use the news, including bad news, to justify rate increases. Today, I'd like to talk a little bit about the commercials we see on television from the insurance industry.
We have all seen the TV commercials where your local adjuster not only sells you insurance but, immediately takes care of your claim when bad things happen. In reality, the insurance adjusters have little to no ability to resolve any accident or claim issues. Almost all insurance agents, including agents for State Farm, Allstate and many other big companies are not even company employees. They are independent contractors who sell insurance. Nothing more.
Some of the television commercials act as though the company is doing you a favor by hiring an attorney if you cause an accident and get sued. This is part of your insurance contract. They have to provide you with legal representation. This is one of the types of propaganda insurance companies years to convince you they're taking special care of you when they're really just complying with the contract of insurance you have bought and paid for.
We could talk for hours about this; however, it is much easier to simply take everything you hear from any insurance company with a very large grain of salt.