Financial worries are relatively common after car crashes. People fear becoming unable to pay their bills if injuries prevent them from working. They may not have enough money in their savings accounts to pay to repair their vehicle or buy a new one.
Those who are not at fault for a crash often expect to obtain support for their expenses. Specifically, they hope to receive compensation from the other driver’s insurance policy. Fault-based insurance rules typically help ensure that those who are not at fault for crashes do not have to cover the costs of the wreck. However, waiting to hear back from insurance companies can be a nerve-wracking experience.
Sometimes, people have to submit every invoice and hospital bill separately. Other times, they can potentially negotiate a settlement. Settlements can be very appealing for those dealing with major car crash expenses. They also appeal to insurance companies because they end the business’s financial liability.
How can those offered a settlement determine whether the amount offered is appropriate?
Consider current and future expenses
The first step when evaluating a settlement offer is to have a rough idea of what the crash may cost. People may already have thousands of dollars in bills from the hospital where they received treatment and the mechanic working on their vehicle. They may also have future expenses to consider, such as ongoing treatment costs and the future diminished resale value of their vehicle. Those who have a rough idea of the total cost of the crash can quickly determine whether a settlement is reasonable based on their losses.
Review the policy limits
Another key consideration when reviewing the settlement offer is how much insurance coverage is actually available. Insurance companies never pay more than the policy limits a driver set when acquiring their policy. It is, therefore, crucial to know how much coverage is available for both property damage expenses and injury-related losses, including lost wages. If the settlement offer is not at the policy limit, there may still be room for negotiation.
Consult with a professional
One of the biggest mistakes those dealing with insurance make is to accept a settlement before reviewing the offer in full. Many people decide to partner with an attorney while handling insurance negotiations. Lawyers can review policy paperwork and settlement offers. They may also have experience estimating crash costs, which can be very useful for those unsure of how accurate their estimates might be.
Maximizing a car crash insurance settlement is often crucial for those who didn’t cause the wreck. Those who rush through the insurance settlement process because they need money may end up receiving less than what they require and may face financial challenges in the future as a result.