It’s normal for people to worry about paying their bills right after a car crash. Even if you only miss one day of work to deal with your car and get medical care, your budget is going to take a hit. The more serious the injuries are, the longer you will go without income while also building up a big stack of hospital bills.
Hearing back from the insurance company covering the driver who caused the crash could make you feel like the tides have started to turn. Now you have the option of negotiating a settlement and getting caught up on all of your bills. Before you leap at that opportunity, you should familiarize yourself with the two primary risks involved in accepting a settlement.
The earlier it is, the less you know about your costs
You may have an idea of what your injuries will cost, but until you fully recover and return to work, you can’t be certain about the extent of the impact that the crash-related injuries you suffered will have on your finances.
A broken arm, for example, might eventually lead to someone developing a nerve disorder like Complex Regional Pain Syndrome (CRPS). Although such extreme outcomes are rare, you won’t know right away what the impact of your injuries will be. The earlier in the process you accept the settlement, the greater the risk that the settlement won’t fully cover your costs.
The insurance company is off the hook once you agree to the settlement
The insurance company that wrote the policy for the driver who caused the crash will need to compensate you for your losses up to the maximum amount of coverage available for the policy.
Offering a settlement lets the insurance company control its costs and keep them under the maximum amount possible for the claim. If you discover that you have additional costs in the future, you will not be able to go back to the insurance company and ask for more money.
Before you accept the settlement, you need to look closely at your financial circumstances and injuries to determine whether additional negotiations are necessary. First offers are rarely best offers when it comes to insurance compensation after a serious car crash.