Originally Posted by
jamlo21
The insurance company hasn't made him an offer and probably won't initiate the settlement. They want him to make the first move. Insurance companies are stingy. If they're willing to pay him $15,000, they're not going to tell him that first in case he's only looking for $2,000.
Also, in my experience, defense counsel is not retained until a lawsuit is filed. Some adjusters have been in the biz so long that they deal with lawyers quite well. I don't think an insurance company can/will dissuade you into getting an attorney. Lots of companies use their in-house attorneys so they're not paying a per hour rate. Also, in CA, there are only two ways a losing party needs to pay for the winner's atty fees-if its by contract or by statute. None of those apply here so the insurance company isn't concerned with paying anyone's attorney's fees except their own if they use outside counsel. And then, the rates are so low that its not that even much of a factor.
True that he has been avoiding contact with the insurance companies, and they have asked for a letter of demand, so he needs to move forward with demand of a settlement. However, if you are saying that even the adjusters are savvy and stingy, all the more reason he should have an attorney representing him. True also that adjusters can interface with attorneys but they know that when the claimant brings an attorney into the mix, the settlement will probably be greater, and yes, their attorneys will probably get involved. Regardless that they are in-house, they are at a much higher pay scale than adjusters. They want their in house attys. on their biggest cases, so if they get drawn into a relatively smaller claim, it is more costly for them. Thus me, they would rather the claimant not get a lawyer, and they may come forth with a resonable settlement along the lines of what he is seeking, if they can get it settled and out of the way more quicky. You will never really know until the claimant makes the demand.
As far as a lawsuit, that is the end game that your counsel will resort to if he can't get the settlement he is seeking. Lawyers come into play well before the lawsuit. You don't go into an attorneys office and say "I was hit by a car, I need to sue." You say, I was hit by a car and I need your help." Dealing with more than one insurance company is complicated, the law is complicated, and something like this you most likey don't want to handle alone. A well informed claimant might make an initial demand and see if they can settle reasonably, but beyond that, he needs the lawyer.