Do Insurance Companies Prefer to Settle?
Insurance companies are in the business of protecting their customers from financial losses due to accidents, illnesses, and other unfortunate events. When an insurance claim is filed, the insurance company must decide whether to settle the claim or take it to court. Most of the time, insurance companies will try to settle accident claims outside of court.
Lawsuits are lengthy and expensive. An insurance company knows it’s likely to pay less by settling outside of court. After you file a claim, the insurance company might respond quickly with an offer to settle. This is because they want to avoid the cost and hassle of a lawsuit.
Insurance companies also prefer to settle because they don’t want to risk a large jury award. Juries are unpredictable and can award large amounts of money to claimants. This can be financially devastating for an insurance company.
When an insurance company settles, they are essentially agreeing to pay the claimant a certain amount of money in exchange for the claimant dropping the lawsuit. This is beneficial for both parties because it saves time and money.
However, there are times when an insurance company may not be willing to settle. This could be because they don’t believe the claimant’s story or because they think they can win in court. In these cases, the insurance company may take the case to court.
It’s important to remember that insurance companies are in the business of making money. They are not in the business of helping people. So, if an insurance company is offering to settle, it’s likely because they think it’s in their best interest.
In conclusion, most of the time, insurance companies will try to settle accident claims outside of court. Lawsuits are lengthy and expensive, and insurance companies know they’re likely to pay less by settling outside of court. They also don’t want to risk a large jury award. However, there are times when an insurance company may not be willing to settle and may take the case to court.
