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Insurance Companies’ Efforts to Fight Personal Injury Claims

Contrary to what you may have seen from TV court dramas, insurance companies will not always settle claims to avoid costs associated with trial. Consult with your New Jersey accident attorney to find out if he can negotiate a settlement with the insurance company.

Taking a Case to Trial

The Insurance companies realize that a prospect of a big loss at trial that results in significant reward to the plaintiff can be remote. The cost of trial is manageable considering their chances of success, meaning insurance companies are more than willing to decline settlement and take the case to court, or settle at the very last minute. Of course, they would prefer not to spend $6,000 to defend a claim worth $10,000. But they will spend money on cases if the situation warrants it, especially to avoid the appearance of caving into claims and taking on losses just to avoid a long, costly trial.

Settling a Claim

While adjusters would rather close the file and avoid trial, an insurance adjuster or supervisor may not significantly compromise the value of a claim just for the expediency of closing the file. Once a suit is processed, the adjuster will likely simply refer the file to the defense attorney who would take over the case on behalf of the insurance company. The adjuster establishes contact with the defense attorney, but most of the heavy lifting will be done by the defense firm. The adjuster is under no pressure to just accept any kind of settlement proposed by your New Jersey accident attorney.

Justifying a Settlement

Even if an adjuster wanted to settle, he must first rationalize the settlement payment to someone at the insurance company either before or after the settlement. This applies to even senior adjusters and claims managers. As a result, adjusters will often talk about “getting approval” on the settlement and will not pay a claim if they’re uncertain about whether the settlement will be questioned or tested in the future.

Reaching a settlement with the insurance companies can be a contentious process. The insurance will likely utilize all their resources and protect their interests and instruct their employees to agree to a settlement only when absolutely necessary.

If you have been injured recently and feel entitled to compensation or a settlement, please call the law offices of Gerald Clark at (877) 841-8855 for legal representation.

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