As 2009 comes to a close a disturbing trend in way Insurance companies deal with injury claims has emerged.
The economic environment has created a situation where those with cash can make great deals at a discount. This applies to how insurance companies see the personal injury claims environment. Their approach is based on their belief that many accident victims will be driven by the tough financial times to accept lower settlements for the injury claims. The Insurance companies are awash in cash and operate from a position of financial strength. They in effect reason that whereas before they would have to pay $15,000 to settle an injury, claim, now they can settle that same claim with an offer of 7-8 thousand dollars.
To be sure, some claimants will accept this, as they are unwilling to wait out the process and need cash now.
However, the vast majority of claimants, including our clients, view these offers with disdain, and derision. These "discounted" offers thus have the opposite impact, and cause us and our clients to resort to litigation with ultimately a jury making an award.
It was only several years ago, that of all the injury claims we were handling , that approximately 35% would end up in an actual lawsuit being filed. As we close out 2009, nearly 70% of our injury claim files are in suit and heading for a jury trial.
For us as lawyers, are goal is to achieve the best possible result for our clients. Its clear that the path to these best results leads us to the courthouse steps.
The insurance industry is insistent on playing these games, driving up the costs of justice, and clogging the courts with cases, that could be resolved through reasonable negotiations. But if this is going to be the dance, then so be it. You can pay us now, or pay us later, but pay us you will.