How much does it cost an insurance co. to go to trial auto claim?
How much does it cost an insurance company to go to trial on an accident claim when their claims office is a few hundred miles from the court. As we understand it they would hire a lawyer in the area of the court. Will they bring their medical professional witnesses or just use the disposition phase to grill the plaintiff's doctors. At these dispositions is the plaintiff present.
- lucyLv 73 years agoFavorite Answer
There is no "specific" costs that (each) insurance company pays to defend their insured policyholder. It could depend on the company if they will fight vigorously or not. I worked for one company like USAA, that would offer more vs going to court, since they hated to pay for lawyers, but as a general rule other companies out there will pay what it costs no matter what the cost.
Like the other site which only applies to NY and their laws, the lawsuits have increased over the years vs claims have gone down, but in the end, it the policyholder out there that ends up paying more for insurance, since the insurance company must recoup the costs of lawyer fees.
Now, if this insurance is a big mega insurance company, then many times they don't hire outside counsel, since they could have anywhere from 10 to 50 lawyers (employees) that work for that company that is on salary vs paying another lawyer an hourly rate. State Farm comes to mind, since they have a huge department of lawyers that work for State Farm. So, the lawyer from the company would most likely drive over to the city where the court is, (about 4 hours) and stay at a hotel that night and go to court in the morning. So the company would reimburse the lawyer for mileage, hotel and food, and would have the files with them, vs transferring to another law firm to handle.
Lawsuits are just part of the cost of doing business in insurance, thus the reason you see so many billboards and TV ads from lawyers wanting your business, since (even) if you get more, the odds are that the lawyer gets more, (but) you could end up with less than the original offer you got.
On the 2nd site shows that the average cost paid is 12 cents (per) dollar to lawyers, whereas 7 cents (per) dollar is paid on pain/suffering.
- Spock (rhp)Lv 73 years ago
they already have attorneys on retainer in every area where they have policyholders.
of course they'll use depositions to discover the future testimony and reasoning of your witnesses.
pls ask the attornies what local/state rules are for who attends depositions. if you do get to go, remember that YOU are not being deposed and YOU need to keep mouth firmly shut.Source(s): grampa