When you're injured in an accident caused by someone else, you may assume the responsible party will have a say in how their case unfolds. However, in most cases, it's the insurance company—not the individual—who is calling the shots. From hiring a defense attorney to deciding whether to settle or go to trial, insurance companies almost alwasy have full control over litigation.

Understanding how insurance companies operate during a lawsuit can help injured victims navigate the legal process and ensure they receive the compensation they deserve.

How Insurance Companies Handle Litigation

If a claim cannot be settled before the statute of limitations expires, or if the injured party is still receiving medical treatment and future damages are uncertain, filing a lawsuit may be necessary. Once litigation begins, the insurance company takes over the defense of the case.

1. The Insurance Company Hires a Defense Attorney

After a lawsuit is filed, the insurance provider of the at-fault party assigns the case to a defense lawyer. The insured individual typically has no say in this process—the insurance company selects and pays for the attorney.

• Panel Counsel vs. In-House Counsel
  • Some insurers hire outside attorneys (panel counsel) to represent policyholders.
  • Others use their own legal team (in-house counsel) to handle litigation.

Regardless of who represents the defendant, their priority is to protect the insurance company’s bottom line—not necessarily to act in the best interest of the insured individual.

2. Insurance Companies Decide Whether to Settle or Fight the Case

One of the biggest misconceptions about personal injury lawsuits is that the defendant has control over whether to settle or fight the case. In reality, that decision is entirely up to the insurance provider.

• Even if the at-fault party wants to settle, their insurance carrier may choose to push the case to trial if they believe it benefits them financially.
• The defense attorney represents the insurer’s interests and follows the strategy dictated by the insurance company—not necessarily what the defendant wants.

Example:
If an insurance company believes they can minimize payout by delaying the case or taking it to trial, they may refuse to settle—even if the defendant wants to resolve the matter quickly because they feel bad about negligently injuring another person, want to avoid the time and hassle of litigation, etc.

3. The Role of the Insurance Adjuster in Litigation

Once a claim enters litigation, a litigation insurance adjuster is usually assigned to oversee the case.  Generally speaking, this insurance adjuster will have more experience than the pre-litigation insurance adjuster. The new litigation adjuster:

• Reviews police reports, medical records, and witness statements
• Determines the maximum compensation they are willing to pay
• Consults with defense attorneys about litigation strategy
• Attends mediation and settlement discussions

Insurance adjusters usually make lowball settlement offers in the hopes that claimants will accept less than what their case is worth. This is especially true if the injured party does not have a lawyer, has a lawyer who does not specialize in personal injury cases, or has a lawyer who does not have a track record of success.  This is why working with an experienced car accident attorney who is successful is crucial in securing fair compensation.

Insurance Companies Control Trial Strategy

If a case proceeds to trial, the insurance company makes all key litigation decisions. The defense attorney, although technically representing the defendant, must act in accordance with the insurance company’s wishes.

At trial, juries are not allowed to know that an insurance company is behind the defense. This means:

• The defendant appears as though they are personally liable for paying damages, even though they are not.
• Jurors may sympathize with the defendant, believing they will have to personally cover the verdict, case costs or attorney fees.
• In reality, the insurance company is pulling the strings and covering all legal case costs and attorney fees, as well as any judgment up to its policy limits.

Why You Need an Experienced Auto Accident Attorney

Fighting against insurance companies whether in pre-litigation or in formal litigation is complex. These are billion-dollar corporations that use delay tactics, lowball offers, and aggressive litigation strategies to avoid paying claims.  They have a team of adjusters trained in the art of deception and bully tactics.

An experienced personal injury attorney can:

• Identify all available insurance policies to maximize recovery
• Push back against unfair settlement offers
• Ensure medical bills, lost wages, and pain and suffering are fully accounted for
• Enforce the injured party’s rights by taking the case to trial or arbitration if necessary

The insurance company has legal experts fighting for their best interests—you need a strong advocate fighting for yours.

Contact an Auto Accident Attorney Today

If you’ve been injured in a motor vehicle accident, don’t let the insurance company dictate your case. At DWC, we have decades of experience successfully fighting against insurance companies to get our clients the compensation they deserve.

Call us today for a free consultation: (541) 617-0555.

Let our team handle the insurance claims process to maximize your recovery, enabling you to focus on recovery.