Getting insurance compensation after a car crash can be a frustrating process. In many cases, those involved in collisions have to submit new invoices and billing statements as expenses continue accruing.
When compared with the process of seeking compensation on an individual expense basis, a settlement can seem very appealing. The party seeking insurance compensation receives a single lump-sum payment to cover all of their medical expenses, property damage losses and lost income.
Receiving notice of a potential settlement offer can feel like a small victory for those already coping with the aftermath of a car wreck. Plaintiffs often leap at the chance to cover their costs. Unfortunately, their enthusiasm may end up depriving them of the full amount of compensation that they deserve.
Initial settlement offers are often low
A settlement may not be enough to help an injured person cover their medical bills, replace their lost wages and repair their vehicle. Insurance professionals understand that people are often desperate for financial support if they cannot work after a car crash. They also recognize that some people hire lawyers and intend to negotiate to secure as much compensation as they can.
Therefore, initial settlement offers tend to be somewhat low. Regardless of whether a driver carries a robust policy or the minimum coverage required by law, the settlement amount may be lower than the maximum amount of compensation available. There needs to be room for compromise during the negotiation process.
Making an offer below the total estimated cost of the crash and the policy limits is standard practice. The goal of the insurance professional is typically to reduce what the company pays and therefore protect its profit margins.
If people accept a first settlement offer, the company usually has no ongoing liability regardless of how many additional expenses may arise. Those pursuing car insurance compensation after a crash often need support when they estimate their expenses. They may also require assistance as they review and negotiate settlement offers.
Recognizing that a settlement may not fully cover car crash expenses can help people temper their enthusiasm and respond appropriately to an offer. Those with the right expectations and assistance can potentially optimize their financial recovery after a collision.