What if the defendant or insurance company just pays the policy limits?
This is the preferred way of resolving a case because it’s usually done before we file a lawsuit or spend a lot in costs, meaning more money in your pocket. However, in my experience, insurance companies only pay the policy limits when the policy limits are low (less than $25,000), the damages in the case are way more than what the policy limits cover ($200,000 in damages verses a $10,000 policy), and/or when there is no question that the defendant is liable for the accident (such as the defendant rear-ending you while you were stopped at a red-light). This usually occurs before filing a lawsuit, meaning attorney’s fees would be 33 1/3% of the settlement.
This is the preferred way of resolving a case because it’s usually done before we file a lawsuit or spend a lot in costs, meaning more money in your pocket. However, in my experience, insurance companies only pay the policy limits when the policy limits are low (less than $25,000), the damages in the case are way more than what the policy limits cover ($200,000 in damages verses a $10,000 policy), and/or when there is no question that the defendant is liable for the accident (such as the defendant rear-ending you while you were stopped at a red-light). This usually occurs before filing a lawsuit, meaning attorney’s fees would be 33 1/3% of the settlement.
