# How are those insurance settlements that injury lawyers advertise possible? **URL:** \ **Category:** Factual Questions\ **Created:** [May 5, 2026, 2:58pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805 "2026-05-05T14:58:42Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Drum\_God](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/drum_god/32/44_2.png) [@Drum\_God](https://boards.straightdope.com/u/Drum_God)\ **Post date:** [May 5, 2026, 2:58pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/1 "2026-05-05T14:58:42Z")
I’m sure you’ve seen the TV commercials and other advertisements from personal injury law firms that claim to get huge settlements for victims of events like a vehicle crash. But, how do they get such huge settlements? I don’t mean the tactics they employ, but the actual cash payouts don’t seem typically possible. I own (and insure) three vehicles. I don’t remember the limits of liability, but it is in the tens of thousands of dollars, not tens of millions. It exceeds the minimum required by the State of Texas, but it isn’t huge. If I crash into someone, there is a limit to how much my insurance company will pay the injured party(-ies). So, if I were ordered to pay out millions in restitution for the crash, there simply isn’t any money there. The insurance company will only go so far and my personal wealth is certainly not in the millions. Now, I also drive a commercial vehicle (a motorcoach). It is 45 feet long, weighs about twelve tons, and carries 56 passengers, plus me. My company’s liability policy, I would assume, has a much greater limit of liability than my personal policy since the mayhem the bus can cause is vastly greater than my ordinary car. I would imagine their per-incident limit is in the millions, but if divided among all the passengers and people outside the bus who may be impacted, surely those millions don’t go forever. So, are the settlements merely numbers, but no money is actually collected, since the settlement exceeds the money available? ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [May 5, 2026, 3:19pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/2 "2026-05-05T15:19:10Z")
I wonder the same thing. In some of these commercials, the client says that the insurance company offered them some small amount (say $10,000) but once they hired the personal injury firm, they received a much larger amount (say $500,000). The difference seems hard to believe. ---
**Author:** ![Raza](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/raza/32/213_2.png) [@Raza](https://boards.straightdope.com/u/Raza)\ **Post date:** [May 5, 2026, 3:20pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/3 "2026-05-05T15:20:15Z")
I think you OP nailed it: they are going after commercial insurance. And they will involve as many defendants as possible. Also: generally speaking, if the plaintiff asks for your limit of liability coverage (say, $2m) and the carrier refuses and it goes to trial, the carrier is on the hook for the award regardless of the policy limit (it’s more complex but that’s the risk involved) -– former data guy at a commercial insurance carrier ---
**Author:** ![Procrustus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/procrustus/32/2994_2.png) [@Procrustus](https://boards.straightdope.com/u/Procrustus)\ **Post date:** [May 5, 2026, 3:23pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/4 "2026-05-05T15:23:37Z")
In many cases, you can only recover the amount of insurance, which in my state can be as low as $25,000. Often, it’s tragic that there can be no meaningful recovery when someone dies or has serious injuries. (I’ll waive my fee in such cases) But there can be cases against the State, or a corporate defendant (with or without a lot of insurance) where a good lawyer can indeed collect millions for their client. ---
**Author:** ![Jackmannii](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jackmannii/32/311_2.png) [@Jackmannii](https://boards.straightdope.com/u/Jackmannii)\ **Post date:** [May 5, 2026, 3:28pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/5 "2026-05-05T15:28:04Z")
There are lawyers who advertise their alleged success suing over [Big Truck](https://www.kentuckycourage.com/truck-accident-attorneys/big-rig-truck-accident/) injuries. There must be substantial $$ available. It’s a “specialty”, like [Strangulation Lawyers](https://markshermanlaw.com/fairfield-criminal/assault-lawyer/strangulation/) and [Munchausen by Proxy Lawyers](https://www.michiganparentdefense.com/cps-defense/munchausen-syndrome/). I see billboards promoting Big Truck Lawyers along major roads in my area. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [May 5, 2026, 3:30pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/6 "2026-05-05T15:30:07Z")
I see other advertising for firms specializing suing Uber and Lyft drivers. And there are the ones who aim at motorcycle riders. ---
**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\ **Post date:** [May 5, 2026, 4:08pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/7 "2026-05-05T16:08:50Z")
Let’s not forget that while a jury may award big bucks, those awards are often reduced on appeal. ---
**Author:** ![md-2000](https://avatars.discourse-cdn.com/v4/letter/m/9d8465/32.png) [@md-2000](https://boards.straightdope.com/u/md-2000)\ **Post date:** [May 5, 2026, 4:59pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/8 "2026-05-05T16:59:41Z")
Not sure how accurate this is, but I read an item once about the “joint and severally liable” judgements. It was referring to medical malpractice, but said the reason the lawyer drags in the doctor, the hospital, and the insurance company if it turns out the nurse was at fault - because if the judgement is $1M, and the nurse is judged 95% repsonsible but can’t pay, then the hospital or doctor, 5% liable, must pay the remaining balance, not 5% of the judgement. I imagine this translates as - if the car manufacturer, or the repair shop where brakes were fixed, or the city that put up the stop sign and streetlights, can in any way be dragged into the lawsuit - then they have the pockets to make up any personal insurance shortfall… So it works on the _Danegeld Principle_ - “which ones among you will pay us how much to get left off the lawsuit?” And today we can drag in the phone maker and the social media companies for being deliberately addictive for the driver… ---
**Author:** ![Joey\_P](https://avatars.discourse-cdn.com/v4/letter/j/919ad9/32.png) [@Joey\_P](https://boards.straightdope.com/u/Joey_P)\ **Post date:** [May 5, 2026, 5:32pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/9 "2026-05-05T17:32:40Z")
> [@Kent\_Clark](#): > > Let’s not forget that while a jury may award big bucks, those awards are often reduced on appeal. And that’s what I’ve always wondered about those commercials. My assumption is that the numbers reported are either the amount the jury awarded, regardless of whether or not the defendant was able to pay it and/or it was the amount the jury awarded, before an appeal or a judge or the state or whoever steps in and lowers it to the ‘correct’ amount. IIRC from something I watched (Hot Coffee, maybe), many of these awards are far higher than allowed and are automatically lowered to be in line. Next time you see one of those commercials, I’d be curious if they claim the amount is how much they received or how much they were awarded. Also, assuming the people in your local commercials for your local law firms are using their real names, you can probably search for the case online and see what it says there. And now that I think about it, all of this, the settlement being reduced, appeals, public court records etc, is (I assume) moot if you settle out of court. ---
**Author:** ![CoolHandCox](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/coolhandcox/32/16233_2.png) [@CoolHandCox](https://boards.straightdope.com/u/CoolHandCox)\ **Post date:** [May 5, 2026, 5:36pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/10 "2026-05-05T17:36:23Z")
If “huge” is $10,000,000+ then it’s going to usually be a company. Usually a large company commercial vehicle/18-wheeler. They’d have a $1million primary policy + 5, 10, 25m excess/umbrella coverage on top of the primary. You’ll never just have a single policy in play. On the flipside, those huge settlements would unlikely ever be against just an _individual_\*'s\* insurance coverage. Normal folks don’t have high policy limits. If it’s in the State of Texas specifically, you can get insurance on the hook for the total amount even if it exceeds the policy limits. For example, assume a clear liability and massive injury (paralyzed, etc), and only a simple $30k non-commercial policy. If the insurance company denies that claim, and the jury awards $10mil, then insurance has to cover the whole amount even though it’s past their policy limits. It’s unfair to the policy holder who likely very much wanted his insurance company to pay out the policy to limit their personal exposure over the limits. It happens. ---
**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\ **Post date:** [May 5, 2026, 5:37pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/11 "2026-05-05T17:37:06Z")
> [@Joey\_P](#): > > Next time you see one of those commercials, I’d be curious if they claim the amount is how much they received or how much they were awarded. I see a lot of ads (and billboards) for personal-injury attornies; as far as I can remember, they _never_ specify, but I would assume that it’s the amount of the award (i.e., the biggest number possible). Their entire goal is to get potential claimants in the door. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [May 5, 2026, 5:42pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/12 "2026-05-05T17:42:33Z")
> [@CoolHandCox](#): > > If “huge” is $10,000,000+ then it’s going to usually be a company. Usually a large company commercial vehicle/18-wheeler. They’d have a $1million primary policy + 5, 10, 25m excess/umbrella coverage on top of the primary. You’ll never just have a single policy in play. On the flipside, those huge settlements would unlikely ever be against just an _individual_\*'s\* insurance coverage. Normal folks don’t have high policy limits. And I imagine that if you’re getting one of those huge verdicts, you don’t just have minor injuries. I expect they’re not paying out seven- and eight-figure sums for broken bones and bruises. Instead, I expect that the victims would have to have traumatic brain injuries, paralysis, amputations or even have died of their injuries to justify such sums. ---
**Author:** ![Jas09](https://avatars.discourse-cdn.com/v4/letter/j/d07c76/32.png) [@Jas09](https://boards.straightdope.com/u/Jas09)\ **Post date:** [May 5, 2026, 5:45pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/13 "2026-05-05T17:45:44Z")
> [@md-2000](#): > > Not sure how accurate this is, but I read an item once about the “joint and severally liable” judgements. Not all states have this, or have various limitations on it, for exactly the reason you point out - it encourages lawyers to add anybody possible to the case to get the deeper pockets to pay the most of the judgement when the primary negligent party can’t afford to pay it. In Missouri, for example, if you are found to be over 50% responsible then you are liable for the whole judgement (“jointly and severally”) but if you are under 50% you are only responsible for the portion attributed to you. IANAL - this is just my reading of the law and various law articles, and second-hand information from my spouses work in the medical industry where lawsuits are just a fact of life. ---
**Author:** ![CoolHandCox](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/coolhandcox/32/16233_2.png) [@CoolHandCox](https://boards.straightdope.com/u/CoolHandCox)\ **Post date:** [May 5, 2026, 7:05pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/14 "2026-05-05T19:05:12Z")
> [@Drum\_God](#): > > So, are the settlements merely numbers, but no money is actually collected, since the settlement exceeds the money available? Just to address this question specifically, the wording matters here. I can’t really think of a situation where a matter would _settle_ but there not be enough money to cover the settlement. A settlement is a pre-trial agreement, by all the parties, to resolve the matter. The parties enter a new agreement and are contractually obligating themselves to pay it - if the paying party has insurance, they always pay once a case settles. So if it’s saying “settlement” in the personal injury ad, it means that amount of money was actually paid. _It’s possible w/o insurance you might not get paid, but that would be rare (eg, settlement pays out over time and the company/person goes bankrupt, etc.). But insurance fights like hell, but always pay out once a case settles._ If the ad says “awarded” or “verdict” or something other than settlement, it’s unclear whether that specific amount of money was _actually_ paid or not. Likely not. ---
**Author:** ![Procrustus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/procrustus/32/2994_2.png) [@Procrustus](https://boards.straightdope.com/u/Procrustus)\ **Post date:** [May 5, 2026, 8:39pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/15 "2026-05-05T20:39:35Z")
> [@CoolHandCox](#): > > The parties enter a new agreement and are contractually obligating themselves to pay it - if the paying party has insurance, they always pay once a case settles. So if it’s saying “settlement” in the personal injury ad, it means that amount of money was actually paid. this is true. But the insurance company has to authorize the settlement. They’re completely involved. BTW, I make my living this way. AME. Also, don’t ever hire an attorney based on a billboard ad. ---
**Author:** ![Railer13](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/railer13/32/9742_2.png) [@Railer13](https://boards.straightdope.com/u/Railer13)\ **Post date:** [May 5, 2026, 10:27pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/16 "2026-05-05T22:27:27Z")
Based on the sheer numbers of commercials that I see on local TV, these bastards must be doing something right. There are probably a dozen firms that dominate the advertising during the local news hours. And that’s just in the Wichita market. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [May 5, 2026, 11:02pm UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/17 "2026-05-05T23:02:22Z")
My impression is that it’s a volume business, so these firms need as many cases as possible. ---
**Author:** ![Kent\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kent_clark/32/105_2.png) [@Kent\_Clark](https://boards.straightdope.com/u/Kent_Clark)\ **Post date:** [May 6, 2026, 12:52am UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/18 "2026-05-06T00:52:39Z")
> [@Railer13](#): > > Based on the sheer numbers of commercials that I see on local TV, these bastards must be doing something right. Maybe hard times are befalling even the personal injury lawyers. According to one commercial, some law firms are raising their fees to 40% of the ultimate payment, rather than the traditional 30-33 percent. ---
**Author:** ![Procrustus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/procrustus/32/2994_2.png) [@Procrustus](https://boards.straightdope.com/u/Procrustus)\ **Post date:** [May 6, 2026, 12:56am UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/19 "2026-05-06T00:56:13Z")
> [@Dewey\_Finn](#): > > My impression is that it’s a volume business, so these firms need as many cases as possible. Those firms do. And therefore, by and large, they are not set up to get maximum value on complicated cases. (and most “big” cases have complications) > [@Kent\_Clark](#): > > According to one commercial, some law firms are raising their fees to 40% of the ultimate payment, rather than the traditional 30-33 percent. Not necessarily “hard times,” but yes, 40% is becoming more common. (and I’ve seen higher) ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [May 6, 2026, 12:56am UTC](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805/20 "2026-05-06T00:56:23Z")
> [@Railer13](#): > > Based on the sheer numbers of commercials that I see on local TV, these bastards must be doing something right. Or it could be they need to drum up more business. [Next page](https://boards.straightdope.com/t/how-are-those-insurance-settlements-that-injury-lawyers-advertise-possible/1029805.md?page=2)