Would insurance company likely settle for 15K?

Question

Auto accident....my lawyer asking for 25K, insurance company said 12K (my lawyer wants to go to court and all that, I really do not want to; I just want to get this over with) My lawyer said it's worth much more than 25K but that's all the limit is. If I ask the lawyer to try & negotiate 15K w/o going to court; how likely or unlikely that the insurance company (State Farm) agree? If they do agree, how long before they send the check? I need to pay my doctor bills off and get another car (I am so ready for this to be over with!!!!) Thanks.

Answer 1

the longer your attorney "drags it out", the more it will cost you.  What's he get? 40% plus fees and expenses? Maybe higher percentage if you go to court.

These are things that ONLY your attorney can tell you.  NOT EVEN YOUR AGENT can help you now.

Good luck!

Answer 2

Your lawyer says your claim is worth much more than $25,000.  But, my guess is that the person's policy has a $25,000 limit.  So, while you might get awarded more than the limit, the insurance company is just going to pay the $25,000 and the adverse driver would have to come up with the difference.  Chances are the adverse driver doesn't have the money so you will have a hard time getting that out of them.  

The lawyer will get his percentage off of the amount awarded plus expenses.  So, if you are awarded $40,000 the attorney would take at least $13,333 plus expenses which will be high when you factor in paperwork for going to court.  He will take that at the beginning, it will be up to you to get the balance from the adverse driver.  If you go to court you would probably end up with less than if you would settle at this point.  

Even if you settle for $15,000 the attorney will most likely get at least $5,000 of your settlement 33.3%.

Answer 3

Mamatohaley+1 is correct in all aspects of her answer.  

One thing I will offer,  ask your attorney to considered binding arbitration.  It is likely the insurance company will attempt to cap their insured's exposure at the $25k policy limit.  Your attorney should agree to this.  You can do a straight arb, or a High/Low.  The cost to arbitrate is far less expensive than actual litigation.  

He may be filing suit to protect the statute of limitations, but you can still arbitrate the claim.

Not actually knowing where the loss occurred, or what kind of injuries you sustained, nobody can advise you if the $15k is reasonable.  You may be undervaluing your settlement.  

Hopefully, you will never be in this position again.  However, if you are,  I would suggest that you work with the adjuster directly, and do not get an attorney involved.

Answer 4

First, what you are entitled to is the replacement cost of your vehicle plus medical expenses.

As to how much in insurance will pay, typically they will pay 2-3.5 times your medical expenses to make you go away. This can all be done without a lawyer, because an insurance company doesn't want that extra expense. The only time you need a lawyer is when you are asking for significant punitive damages.

Hope this puts the amount you are asking for in perspective.

Answer 5

I wish my advice could be helpful.And here is a good resource.Check it up.

http://insurance.online-assistant.info

Answer 6

LUND2100 answer is complete bullsh*t. The amount of medical bills is completely irrelevant to the value of your claim. So don't let anyone tell you that. A person with 50 stitches on their face and 1k in meds has a claim that is worth a lot more than a person that strained their back with 5k in meds!!! Also there is no extra expense for the insurance company when you have a lawyer. They do not send the claim to the legal department until a suit is filed and even then most insurance companies will take on the expense not to overpay a claim.

With that said it is hard to answer your question because you don't tell us about the injuries received and the negotiations that have gone on. It is too bad that you have a lawyer because he is going to take so much of your settlement. If it goes to court it will take a long, long time. Does he really want it to go to court or is he just wanting to file suit?After he files suit he gets to take more of your settlement. You can still settle after suit has been filed. Very few claims actually make it to court.

Have your lawyer negotiate - that is what he is here for. If settlement is reached State Farm will send release form, once you sign it and lawyer sends it back they will likely issue check within 30 days but often much sooner. The check goes to your lawyer, he cashes his part and sends you the rest. I would bet the entire process would take about a month.