LOS ANGELES, Dec. 17, 2019 /PRNewswire-HISPANIC PR WIRE/ — Alianza Legal, a reputable Spanish Personal Injury Law Firm, warns the Hispanic/Latino community that auto insurance companies may be capitalizing on their business.
Roughly 39% of California’s population is Hispanic or Latino, per the United States Census Bureau’s 2018 statistics. It’s a rapidly growing demographic. California’s auto insurance companies were fast to target this market, but are they serving this community well? Research suggests that auto insurers may be financially benefitting by paying out on fewer claims or paying lower settlements to these customers, who may not fully understand the policies they purchase.
Any victim of a car accident is susceptible to being taken advantage of by insurance companies if they do not have legal representation, regardless of their fluency in English. Alianza Legal noticed a specific trend with their Spanish-speaking clients and would like to raise awareness within the community.
While potentially unethical, it’s to the insurer’s benefit to serve populations that speak English as a second language. Alianza Legal represents many Spanish-speaking clients for their car accident claims. Their experienced attorneys and case managers see first-hand how often insurers will try to give the run around to the Spanish community.
How Do Auto Insurance Companies Take Advantage of Hispanic/Latino Individuals?
Insurance is complicated. Even individuals with English as their first language can struggle to understand their own insurance policy without the advice of a licensed agent. Unfortunately, despite the vast number of customers who would benefit from Spanish translations for both verbal and written communication, not every insurance company has these options readily available at all times. A language barrier when dealing with insurance companies can lead to several issues:
- Customers who cannot read (or have trouble reading) English cannot read their insurance policy, or research available alternative options.
- They may rely on a family member to translate legal requirements or crucial policy details
- Eager to make a sale, unethical insurance agents may omit key policy details. They can even lie outright, knowing the customer’s inability to understand the details of their policy.
- It’s possible for agents to over-insure a vehicle, increasing the premium paid, to cash a bigger commission check.
- Adjusters sometimes give “the run-around,” with a barrage of “legalese” to avoid paying a claim.
- Adjusters are more likely to “low ball” a settlement, because they think the first low offer is likely to be accepted without too many questions.
- Insurers know this market is less likely to approach a lawyer for assistance. Nor are they likely to file a complaint with California’s Department of Insurance, or consumer watchdog groups.
It’s Not a Race Issue, It’s a Location Issue
The Hispanic/Latino community of Los Angeles County resides mainly in East Los Angeles, Commerce, and Vernon. These areas are heavily populated. The increase in residency in the areas alone makes for more potential accidents. Additionally, roads may not be in great shape. Broken and damaged infrastructure contribute to a significant percentage of traffic accidents every year. Risk of accidents are quite high in these locations.
Insurers base their rates on “assumed risk.” Customers who present a higher risk are charged more for the same policy. While forbidden to charge based on their race or ethnicity, they can price according to location, age, and claims history. Therefore, they can charge higher rates in minority zip codes.
Alianza Legal Can Help
As a law firm that represents many Hispanic and Latino clients, Alianza Legal understands your struggles, and is here to help. Their mission is to provide outstanding legal services, regardless of race or fluency in English.
With multiple Spanish speaking staff members, they deal with the adjusters directly and alleviate the burden of dealing with insurance agents for their clients.
If you’re struggling with an auto accident or auto insurance claim, contact Alianza Legal today at 888-417-1086.
505 N. Brand Blvd.
Glendale, CA 91203
SOURCE Alianza Legal