How are offers of compromises determined?
Say I was in a car accident & I sue the other motorist — before any serious settlement negotiations even start, an offer of compromise is typically written up by the plantiff.
If I hypothetically hope for say 20k, should that be my "offer of compromise" or should it be something way bigger? Is there a general rule among insurance companies that plantiffs typically want "half of what their offer is" — meaning if I want 20k then I should ask for 40k ??
Also in my state, there's a "interest % rate" that's attatched to any verdict amount at trial.
So if I ask for 20k & win at trial 50k, then an interest rate would be applied to that 50k… meaning I could end up with like 60k.
So is it in one's best interest to ask for a smaller offer, an offer you think is fair, or a huge offer that you know you won't get.
Thanks in advance
Plantiffs' offer of Compromise?
byu/Sudden-Degree9839 inInsurance
Posted by Sudden-Degree9839
1 Comment
Every claim is different. There’s no set rule.
Each claim is evaluated based on its facts and an experienced claim handler gets approval for a settlement offer based on severity of the loss and potential exposure within the policy limits.
If you ask for 40k and the policy limits are 15k, then you’re not getting what you asked for.