The economy plays a role in our everyday life. It can affect your employment and your wages, which, in turn, can affect your family’s life. Just like everything else, civil settlements can also be affected by the economy. How might you ask? Well, we are going to explain that to you.
How does the economy affect personal injury settlements?
The economy can affect a personal injury settlements in a variety of ways. A bad economy can cause extra tension in settlement cases and cause them to hang around longer than usual. A good economy might result in the plaintiff receiving more money than they were expecting. The reason for this is that insurance companies make investments in order to generate revenue. When their investments are down, they are going to pinch every penny. The inverse occurs when the economy is up. Here are a few ways the economy might play games with your settlement rewards:
- As the economy decreases, the settlement reward decreases
- For a number of reasons, a weak economy, will lead to a lower settlement payout. For example, a settlement that might be worth $15,000 might decrease to $10,000.
- Cases are less likely to go to trial
- A weak economy affects everyone, even the courts. A small to mid size case is less likely to be brought to trial because a judge will not want to waste money on the case. In addition, some courts may close more often or cut staff in an effort to save money during his time. This will make it harder to get a trial date.
- The person suing
- There are two likely scenarios that can happen when a person is filing a lawsuit in a weak economy. One scenario is that the person will want too much money. This person will hold out as long as possible. The other scenario is that a person will settle too quickly. Settling to quickly can lead to a lesser reward for the person suing.
- Insurance companies are difficult
- As previously mentioned, sometimes the insurance company will hold out hope for the economy to rebound. Another factor might be that the company was forced to make cuts. This can affect how long your claim takes to process.
- Court costs
- We mentioned before how a weak economy affects the court system. Not only will it be harder to secure a trial for a small to mid level case, court fees will increase. Court fees are payments for documents like a notice of appeal or a motion.
- The number of fake cases increases
- In a weak economy, people will do anything for money. Some might even try to report a false claim and exaggerate their symptoms.
While a weak economy might lower the reward of a settlement, it does not mean that your medical expenses or lost wages will not be recuperated. If you suffer a catastrophic injury, your case has a greater chance of going to trial and receiving a maximum value reward. Even in a weak economy, if you suffer an injury due to another individual’s wrongdoing, you should contact an experienced personal injury attorney.