Why Insurance Rates Are So High

I tried to settle a case against Fred Loya Insurance Company this week. It is a simple case that should be settled. Fred Loya's insured rear-ended my client's vehicle. There is no dispute as to who is at fault. My client was hurt. A board-certified radiologist found that she has a herniated disc, and a board-certified neurosurgeon says that she needs additional, invasive treatment, such an epidural block or, if that fails, spine surgery. The medical bills thus far are over $18,500, and Fred Loya's insured only has a $25,000 policy.

We offered to settle the case for the $25,000 policy limits. Fred Loya's response: They offered $3,500.00, less than one-fifth of my client's medical bills. There are no reason for these games.

I will make Fred Loya pay on this case, but to do so I will have to file a lawsuit, putting Fred Loya's insured through the stress of being served with legal papers, being interrogated under oath, and going through a trial. Fred Loya will end up spending more on lawyers fees, depositions, experts, and other costs than it would have spent to settle the case.

So when you wonder why your insurance premiums are so high, ask why these companies spend so much money forcing their own customers to be sued, rather than just treating people fairly be paying reasonable compensation early on.