Posted On: November 1, 2005, 7:41 am CST

Posted By: Rob

I second Ned.

Also, just so we all know what's going on, insurers are REQUIRED to defend thier insureds when they are sued.

A very common scenario is a rear-end collision with < $1000 of superficial damage, which, after the "victim" hires an attorney, somehow translates into $20K of PT and Chiro treatment. The plaintiff didn't take the $3-4K the insurer offered before suit was filed because he probably thinks he should never have to work again. (Probably a notion supported by his attorney.)

This is similar to the many slip and falls people mysteriously have after walking around the wet floor sign (after which, they literally expect to own the store).

The vast majority of insurers, adjusters, and insurer's attorneys have no problem paying legitimate money for legitimate claims, the unreasonable expectations/demands of the plaintiffs and their attorneys' financial desires are what drive these matters into litigation.

Why not sue when you know you'll get another 25% or better? Are you familiar with the term "nuisance value"?