Q: Is it true that insurance companies settle frivolous injury claims because it costs them less to pay out than it would to defend the case?
A: No. Insurance companies are much smarter than that. They know that incentivizing frivolous claims would just flood them with more of the same. Generally, the opposite is true- insurance companies initially deny compensation or make low-ball offers as to legitimate claims because they know that claimants frequently choose to accept inadequate settlements rather than take the time to go through the litigation process.
About the Author
Steve Dimopoulos is a personal injury attorney and bar exam expert having scored in the 99th percentile (top one percent nationally) on the multi-state bar exam. Dimopoulos has recovered millions on behalf of clients in Nevada, Florida, and Michigan, the three states in which he is licensed. Submit your personal injury questions to [email protected].