There are numerous frustrating days ahead for those involved in major car crashes. They either need to wait for their vehicles to undergo repairs or start hunting for replacement vehicles. They may spend several days in the hospital getting treatment and longer than that away from work as they recover.
They also have to file an insurance claim and try to get compensation for those expenses. Typically, the policy of the driver at fault for the crash pays for the costs of the other people involved. Sometimes, those costs slowly accrue over several weeks, leading to a very lengthy claims negotiation process.
Many drivers dislike the idea of needing to repeatedly communicate with insurance professionals and submit invoice after invoice for compensation. A lump-sum settlement can seem very attractive in that situation. However, drivers may need to be skeptical of settlement offers because they may leave them without the right to recover more compensation later.
How settlements work
Insurance companies look at the losses reported by the party making the claim. They then offer a settlement based on the potential expenses generated by the wreck. The goal of the company is usually to offer enough to make the settlement appealing but less than the maximum amount available.
Particularly when there are still ongoing repairs underway or long-term medical challenges ahead, the settlement may seem more generous than it actually is. The insurance company ends its financial liability once the party making the claim signs a settlement agreement or accepts settlement funds. Even if they have additional losses in the future, they are likely not eligible for additional compensation.
The party making the claim needs to be very careful when evaluating the settlement offer. If the offer is significantly lower than the policy limits or less than the estimated costs for their medical care, then the settlement may not be in their best interests. Those already dealing with the stress of a car crash and significant injuries may find it difficult to read through insurance paperwork and settlement offers.
Getting help when evaluating a car crash insurance settlement offer can be beneficial for those with injuries, lost wages and property damage losses in the wake of a crash that they didn’t cause. Countering a settlement or taking the matter to civil court can sometimes lead to a more appropriate amount of compensation for those harmed by the negligence or misconduct of another party.