Car insurance is financial protection. In exchange for premiums, the insurance company agrees to pay the losses outlined in the policy. Thus, it shelters the policyholder from financial ruin if there is an accident, theft, vandalism, and the like. Consequently, what does car insurance specifically do when the policyholder gets into an accident?
- Car insurance helps avoid the unpredictability of a trial.
Trials are costly, and to avoid risks of losing, the insurance helps settle a lawsuit. Thus, settlement brings a measure of certainty. - Car insurance helps save money from spending on litigation costs.
Trials mentioned above are expensive as it incurs costs such as litigation. Cases can go on for years, and it is tedious. Besides spending money, both parties will have to exert time and effort to attend and take depositions. Both parties will incur these costs and will attempt to avoid or reduce them as much as possible. Thus, car insurance is a medium for settling. - The plaintiff may obtain payment quicker than going to trial.
The plaintiff would likely have costs and expenses to incur. From hospital bills to opportunity costs could increase. Thus, arranging a fair settlement gets the plaintiff the money he or she needs relatively quickly. Therefore, money now is worth more than earning money later. - Car insurance helps improve profitability for the plaintiff’s attorneys.
Most plaintiff’s attorneys get paid through contingency fees. The sooner a case settles, the sooner the plaintiff’s attorney gets paid. But when a trial goes on, there is no guarantee of an increased settlement offer. It is also uncertain that the increase in settlement offer is proportional to what the plaintiff’s attorney must put in. - Car insurance helps achieve closure.
Not only is a trial avoided, but a potential appeal is prevented as well. It might take several years to get a case to trial. A request could also add another few years to the case’s lifespan.
Conclusion
The highlight is that settlement is often the most efficient way to dispose of a car accident lawsuit. Consequently, car insurance is a medium of such. It saves time, money, and opportunity costs. Car insurance laws protect not only the policyholder but also others.
At Brad Spurgeon Insurance Agency Inc., we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (409) 945-4746 or Click Here to request a free quote.