Policy Limits

On August 8, 2009, our client was involved in a motor vehicle accident. The facts of the accident aren’t important because the gentleman who struck our client readily admitted that the accident was his fault. Our client suffered an injury to her right arm that ultimately led to an open surgical procedure designed to repair tendon, ligament, and bone damage. To this day, more than a year after the accident, she continues to suffer from pain and limitation in the use of her arm.

Progressive Insurance Company insured the “at-fault” driver. Progressive contacted our client with an offer of settlement. They offered $2,000. Seriously. The offer didn’t even begin to cover the medical expenses incurred in the case.

Still, Progressive was unmoved. They wouldn’t increase the offer. Instead, even after the offer had been rejected, they continued to send reminders. OFFER PENDING, their reminders would say.

We made it clear to them: Your policy limits are what we’ll accept and nothing less. Still, they persisted. They continued to offer the $2,000.

Frustrated and unwilling to play their game further, we drew a line in the sand. We’d tried to be reasonable. We’d expressed our willingness to accept the policy limits. We’d made it clear that we would accept nothing less. Now, we told them that they had 30 days to pay their limits or we’d file suit against their insured and we would no longer accept the policy limits. We promised that if they forced us to file a lawsuit, we would take the case to verdict and enforce the judgment against their insured’s personal assets.

Progressive crumbled. They immediately increased their offer. We rejected the increased offer and reminded them that the clock was ticking. Before the 30 days were up, Progressive agreed to pay their policy limits.

It’s a shame that insurance companies behave this way. What’s worse is that people who represent themselves have no way of calling their bluff. Even some lawyers are unable to call the bluff because the insurance companies know that many lawyers won’t bother to try a case.

Awarded: Policy Limits