I often hear people talk about how expensive insurance is. They tell me that insurance costs a lot of money. They blame it on “frivolous lawsuits.” They complain about how these cases cost the insurance company so much money that it affects everyone.
Well, I just tried a case against an insurance company. And they spent $10,000 to defend a case that would have settled for $6,000. Yes, they spent more on a case then the case was worth. And that does not even include paying their attorney.
Let me see if I get this right: let’s spend more money defending a case than the case is actually worth? Does that make sense? Anyone else run a business like this?
The next time the insurance companies tell you about the high cost of insurance, ask them how much they spend defending legitimate cases! As I have said before, if they would make fair and reasonable offers on cases, they would be making more money.