A lot of people are unnerved by the idea of a car accident lawsuit. It’s uncomfortable to be put in a situation where you are forced to decide about making a very serious choice like the one to file a lawsuit. However for many people, the decision isn’t really much of a choice. While we’ve written in the past about some of the circumstances that might lead an attorney to settle car accident lawsuits, we wanted to take a minute to explore this topic in greater detail.
When you take a step back and think about it, there’s a lot of work that goes into automotive transportation. It really is a fascinating mesh of a wide variety of parts.
Your car is assembled in one location, based on a plan that may have been designed by a company in a different location and built using pieces that each been sourced largely from single companies that specialize in the manufacture of that one specific piece. It’s not uncommon for a modern vehicle to be made up of pieces from quite literally, across the world.
Your auto insurance may not involve players from as many countries, but it’s a lot more complicated than you might think. A lot of people assume that auto insurance companies make money by paying out less in premiums than they take in. However you may be surprised to learn that for many insurance companies, the truth is much more complicated. For many insurance companies, the goal is to get the ratio of premiums in and claims out as close to 1:1 as possible. Companies who do this instead make money by adding premiums to an investment pool. By making careful decisions and balancing the flow of money, it’s possible to generate enormous profits.
Not every insurance company works this way, but over the years business models like this have become increasingly popular. This may explain one of the reasons why it can take so long to work with an insurance company during the claims process. If you’ve ever felt like your insurer was intentionally stalling you, you may have been correct.
Insurance companies who do operate this way have to handle your case in a very careful manner. Because of this, it’s easy to fall through the cracks in the process. This is one of the ways that an attorney can help you by filing a lawsuit. When something like that happens, it becomes more difficult for the insurance company to handle your case “in mass,” they’ve actually got to take a step back and pay attention.
There’s a lot more to resolving a car accident than figuring out the particulars of who pays for what. There are other situations where a lawsuit may be a useful tool to have in your toolkit, but this reason alone is enough for many people to seek the guidance of a professional representative during a free consultation. If you or someone you love is having difficulty with the consequences of an accident, it may be a good idea to review how an attorney can help you reach a fair settlement.