Insurance companies will try to avoid answering this question. Insurance adjusters will often feed you lines about not being authorized to pay more than their current offer‚ shortly before your San Diego personal injury lawyer manages to negotiate a bigger settlement.
In truth‚ the insurance company will put a certain amount of money in reserve based on an estimate of the maximum value of your case. This money‚ called the “reserve,” sometimes changes if there are dramatic developments in your case‚ but is for the most part fixed from the outset. Despite what the adjuster might tell you‚ this secret reserve amount represents the true upper limit of what the insurance company can pay out.
The reserve amount is calculated based on projected lost wages and medical expenses‚ as well as the likelihood of permanent disability as a result of your injury. If the insurance company has access to your medical records‚ they will try to find alternative explanations for your injury. If even a somewhat plausible alternative explanation can be found‚ the reserve will be reduced.
The insurance company will also include in its calculations the likelihood of a trial resulting in your favor if you do decide to file a lawsuit. It will evaluate the evidence from your accident‚ trying to determine how strongly that evidence points to the insured being liable. If your witnesses seem unreliable or if there is anything that might suggest you being liable‚ it will reduce the reserve further.
Do not let the insurance company play games with you. Make sure you have an experienced San Diego personal injury attorney on your side when trying to negotiate with insurance companies. Call Ross Jurewitz today for a free evaluation of your case.