Do claims settle longer when a lawyer is involved?

Submitted by Wisegeiser on Sun, 07/20/2008 - 20:11

Some people say well a claim will take a long time to settle with a lawyer. But why would an insurance co want to treat and settle with you fair. Some insurance co you have to fight tooth and nail. One of those insurance co are allstate. They even tried to rip me off and yes i do have them. I pay a great deal amount of money for my auto coverage and i had slid off the road and knock down some rail guards and they said they wasnt going to cover it because it was my fault. I had to agree with the lady for a while until they agreed to pay it. But any way people always say third party p.i claims settle better and faster without a lawyer. Adjusters what do you think? I think in some cases and some companies they do. But in case where the dont want to pay the claim than you do need a lawyer. Prices become a bit steeper when a lawyer is involve this will sometimes wake the insurance company up. Also claimants cant file but a lawyer can. What is pov?

Posted: 20 Jul 2008 08:47 Post Subject:

I have always understood that insurers increase their reserves higher for a claim that a lawyer is involved in that one without. In other words, they expect a higher payout when you hire a lawyer.

The timeline really depends on your attitude and the attitude of your lawyer. it could be faster with a lawyer if you are eager to reach a deal and your lawyer is only interested in giving you advice and letting you decide.

If your lawyer is eager to fight all the time then it could drag on a long time.

My suggestion is to learn as much as you can and interview 2-3 lawyers before you pick one to deal with. Get a referral to a lawyer with a good reputation if you can.

Take Care

Posted: 20 Jul 2008 09:49 Post Subject:

Attorneys don't handle property damage claims as there is no money in it.

An injury claim taking longer to settle with an attorney has nothing to do with the insurance company and everything to do with the attorney. The longer an attorney waits to present a claim the more chance there is that the the client will incur more medical expenses. This translates to more money for the attorney. So the attorney has no interest in making a quick settlement.

You might also be referring to a settlement with attorney taking longer as an attorney is less likely to settle for a lower amount. Only an attorney really has the ability to pursue a claim in the court system as such, it would appear the attorney represented claims take longer to settle. Also along those lines, attorneys are usually not going to become involved in very minor claims and the more complex ones are going to take longer to settle.

You mentioned Allstate not wanting to pay a claim as you were liable. I doubt that is the entire story as these are _why_ claims are paid and what insurance is for.

Posted: 20 Jul 2008 10:04 Post Subject:

Tscope just as much you dont believe that story about allstate i couldnt believe it either. That was just an example of one of the hard nose insurance co. It had nothing to do with my question. But the story about allstate telling me they wasnt going to pay because it my fault goes like this. One more i was driving and the roads were bad from a snow storm i damage the railguards and the town filed the claim and allstated called me and said they wont cover it and i would have to pay it. I had to get my policy out read it to her and at that time she stated ok we will cover it. But please dont get that and the question i posted. I was just pointing out a company who dont like to pay.

Posted: 21 Jul 2008 10:18 Post Subject:

Re: the claim denial, sounds to me more than likely for some reason they thought your policy had lapse...or they could have denied it because you failed to report it when it happened, rather waiting until you got a letter or threat of suit...

re: attorney rep'd BI claims..the company I work for and the way I've always looked at it is...a claim is worth 'x' amount within a 10% or so depending on the size...whether atty rep'd or not...In my place in the world the injured party WAY more times than not, walks aways with less money in THEIR own pocket than if they had not been atty rep''s elementary math...a claim has to go up 33.3% for the injured party to get what they would've got on their own! RE: taking longer to settle...couldn't agree with Tcope any more, the lawyers drag out the claim not the adjusters...adjusters live by a motto, ''the only good claim is a closed claim'' and we like to close them.

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