Insurance companies know that litigation is a pricey venture and usually both sides want to avoid court and find the fastest and most cost-effective solution to the personal injury case. According to State Farm and Allstate, however, in 2012 settlement negotiations were less focused on the fear of litigation costs.

Large vehicle insurance companies operate with a large staff and fixed costs so whether your case goes to court or is resolved with a settlement, the company isn’t likely to be intimidated by a court proceeding. If you believe that the insurance company will want to keep their costs down and be willing to offer a bigger settlement just to stay out of court, it’s a false assumption.

If a personal injury case involves death, catastrophic injury or product liability, however, the case becomes more complex and expensive. The attorneys needed to defend such an action are highly specialized, which drives costs up as does the process of discovery (information exchange between the parties). Trial costs in these cases can skyrocket due to the needed testimony of expert witnesses as well. In these cases, insurance companies are more apt to take into consideration the expense of a lengthy trial and will adjust their settlement offer accordingly.

Whether your case is simple or complex, you should not expect an insurance company to settle quickly simply to avoid litigation costs.

Getting Legal Help

Taylor, Warren, and Weidner is committed to giving individuals dealing with injuries, or facing life-threatening or lifestyle-challenging situations, a voice. Call us today at 866-483-4899 or email us at to receive the personal professional attention you deserve.



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