How Does a Weak Economy Impact Car Accident Insurance Claims?


November 06, 2012

The legal system is affected by the economy just like any other industry. The lagging economy does not stop people from suffering injuries in car accidents, but it does impact how car accident claims are litigated.

Insurance companies suffer during down economic times as do other businesses. Insurance companies make a substantial amount of their profit by investing insurance premiums. When these investments are doing poorly, insurance providers feel financial pressure to compensate by reducing auto accident insurance payouts.

With insurance companies feeling a financial squeeze in the investment market, they have adapted by making it more difficult on those who file insurance claims for injuries suffered in a car accident lawsuit. For less severe injuries following minor collisions, insurance companies may have offered a better settlement during better economic times. In the current economy, we found that insurance companies are denying a much higher percentage of auto accident injury claims. When insurance carriers make settlement offers in less serious auto accident injury cases to clients before we are contacted, many times the offer is often so low that it is completely inadequate, and many times the offer barely covers the person's medical expenses.

The response of insurance companies during these tough economic times makes it more important than ever to consult an experienced auto accident lawyer. The value of an experienced car accident lawyer is reflected in the fact that the insurance company will do everything they can to persuade you not to retain an attorney. The insurance company will tell you that an attorney will take a portion of your settlement, and that you will be paid the same whether or not you retain a personal injury lawyer. Yet, it should come as no surprise that the insurance industry's own studies show that most of the time people get paid considerably more money when they are represented by a lawyer. And, of course, in those situations where a case must be litigated, there is simply no way to effectively proceed without an experienced Georgia car accident lawyer. An experienced Atlanta car accident lawyer will have handled many cases like yours and can effectively deal with the insurance company and will be able to advise you of the actual value of your car accident claim.

We have been representing car accident injury victims throughout Georgia for nearly 30 years. Our Atlanta car accident lawyers are available to assist clients throughout all of Georgia and the Southeast, including but not limited to Albany, Athens, Atlanta, Augusta, Columbus, Gainesville, Macon, Marietta, Rome, Roswell, Savannah, Smyrna, Valdosta, Warner Robins and all smaller cities and rural areas in the state. No matter where you are located our attorneys are just a phone call away, and we will even come to you. Call us 24 hours a day/7 days a week for your Free Consultation at 1-800-LAW-NEED (1-800-529-6333). You can also visit us online at www.montlick.com and use our Free Case Evaluation Form or 24-hour Live Online Chat.

Category: Auto Accidents

Please Note:
Many of our blog articles discuss the law. All information provided about the law is very general in nature and should not be relied upon as legal advice. Every situation is different, and should be analyzed by a lawyer who can provide individualized advice based on the facts involved in your unique situation, and a consideration of all of the nuances of the statutes and case law that apply at the time.