Insurance companies like to put on a good face in their marketing, explaining that they cover their customers in times of need and help them get back to where they were before their accident. However, make no mistake, insurance companies are for-profit companies that can only survive by taking in more revenue than they pay out in claims. Thus, individual insurance adjusters are motivated to deny even the most meritorious claim, and people who are not denied are often offered low-ball settlement offers to make the claim go away.
It is important to keep in mind, however, that an accident victim is not stuck with what an insurance company offers them. And in cases in which an insurance company denies a claim outright, that is not necessarily the final word on the matter. Courts can, and often do, get involved between accident victims and insurance companies to make sure that the insurance policy is honored.
Insurance policies are contracts, by which the insurance company agrees to compensate the insured for certain expenses and injuries. In the case of motor vehicle insurance, the insurance company agrees to compensate the insured if they are involved in a qualifying accident. This coverage extends not only to the insured but also to anyone injured by the insured. A recent case out of Delaware is a good example of how an insurance company may try to escape paying out a valid claim.