Why Would An Insurance Company Spend More Money Defending Their Case Than Just Settling The Claim?

Andrew Dòsa – Personal Injury Attorney – Alameda County, CA

“There’s another sad reality to it. And that is, insurance companies don’t really care if they spend a lot of money defending your case.”

Ray Hrdlicka – Host – Attorneys.Media

“I need to ask (about) that. If you’re spending a lot of money defending you case…you spend more money defending your case versus what you would have to pay out…why?”

Andrew Dòsa – Personal Injury Attorney – Alameda County, CA

“Because insurance companies don’t want to get the reputation they are an easy mark. That’s one. And two, they have an economic income incentive. And it works this way. Every dollar that an insurance company spends to defend a claim, is broken up into two parts. At least 80% of it is the cost of them evaluating the case, disputing the case, and then ultimately rejecting the case and its appropriate value. And the last 20% is what they’ll pay to the plaintiff, out of which the attorney gets paid.

So when the insurance company… when you would think would have a motive to not spend money… when the insurance company knows, at the end of the year, it can identify all of its costs of doing business, knock on the door of the insurance commissioner in California, and justify an increase in their premiums because of all the expenses they have to defend claims, insurance companies live to spend that money. Because at the end of the year they will get a guaranteed profit in their premium raised to address the expenses they have. I have seen cases where an insurance company would rather pay $15,000 for their two experts on a case, which was worth approximately $12,000 because they didn’t want to pay more than $10,000.”

Accidents happen. But when they do, it’s important to have a good attorney on your side who can help you get the compensation that you deserve. Personal injury law is one of those areas where there are so many variables involved – from medical bills and lost wages to emotional distress and pain and suffering. It’s difficult for an individual to determine how much money he or she should be seeking in damages without legal representation by an experienced personal injury attorney.

Personal injury law allows an injured person in California to file a civil lawsuit in court and seek compensation for losses due to an injury after an accident. This law aims to provide compensation for the injured person after the stress and harm they have suffered because of another person’s negligent or intentional conduct.

What are the common kinds of personal injury cases?

Car Accidents

Car accidents are the most common personal injury cases in the U.S. When a car accident usually happens, it is because someone didn’t follow the traffic rules. A reckless driver can be held liable for the injuries caused by the accident.

However, California follows shared fault laws or the “pure comparative negligence” rule. In basic terms, this means that the compensation an injured person will receive will depend on their shared fault in the accident.

For example, you were in a car accident where another driver beat the red light and hit your car. However, you were also driving a few miles above the speed limit, so you might share a small percentage of the blame for the accident, say 15%. Under California’s pure comparative negligence rule, your total compensation is reduced by 15%, representing the total percent of your fault in the accident. So from $10,000, you will only receive $8,500 after deducting the 15%.

Slip and Fall

A slip and fall case is another common type of personal injury case. Landlords, or sometimes even tenants, have the legal responsibility of keeping their property safe and hazard-free to avoid any individuals from being injured. Of course, not all injuries or accidents inside the property premises are against the property owner.

Medical Malpractice

Medical malpractice is a special type of personal injury case. These types of claims are brought against nurses, doctors, and other medical professionals or even hospitals when their treatment falls below medical standards, leading to a patient’s injury or death. However, it is essential to remember that not all bad treatment outcomes mean that your health care provider has committed medical malpractice.

Medical malpractice lawsuits are extremely complicated, so you need legal experts on your side.

Defamation

Defamation is a false statement about you that someone gives. It can appear as fact, and it aims to harm your professional or personal reputation. Libel and slander fall under defamation law. Libel is defamation in writing, and slander is verbal defamation. When charging for slander or libel, you just usually have to prove that someone made a false statement against you and that it caused harm or financial loss.

Dog Bites

In many states, dog owners are protected from injury liability if their dog injures someone for the first time or if they have reason to believe that the dog isn’t dangerous. In California, California Civil Code section 3342 makes the dog owner strictly liable, which means that the dog’s owner is legally responsible for injuries caused by their dog to someone. The statute reads:

“The owner of any dog is liable for the damages suffered by any person who is bitten by the dog while in a public place or lawfully in a private place, including the property of the owner of the dog, regardless of the former viciousness of the dog or the owner’s knowledge of such viciousness.”

Battery, Assault, and Intentional Torts

Compared to other types of personal injury lawsuits, intentional torts aren’t accidents caused by carelessness but rather when someone intentionally harms someone. Cases like these can usually involve criminal charges against the perpetrator. For instance, when someone physically attacks another person, they face criminal charges. The victim can also file a personal injury lawsuit in court and demand compensation for injuries caused by the attack. If you have experienced physical harm caused by someone, don’t hesitate to press charges.

Andrew Alexander Dósa is a trial attorney with more than 36 years of experience in civil/business litigation, criminal defense, personal injury claims, and estate planning. Mr. Dósa received his law degree from the University of San Francisco and his undergraduate degree in political science from the University of California at Berkeley. He is admitted to practice in all California Courts and the U. S. Northern and Eastern District Courts in California, and he is a member of the California State Bar, Alameda County Bar Association, and Christian Legal Society.

As an Alameda CA trial attorney, Andrew has a record of over 15 jury trials, 60 court trials, more than 60 arbitrations and mediation sessions, and handling of all aspects of litigation involving criminal, real estate, business, tort, and trust/probate law. Significant legal research, analysis, and writing. Extensive experience appearing before state and federal courts, administrative boards, and agencies.