Many people worry about how long it will take to resolve an insurance claim after a car crash. They worry that they will go months without being able to afford repairs on their vehicle or remain overextended financially because they’ve covered crash-related medical costs themselves.
They may be unable to work and feel worried about paying for treatment for their injuries. When an insurance professional reaches out and offers a settlement, it may seem like a blessing. Receiving a lump-sum payment often means that an individual affected by a car crash will be able to quickly catch up on their bills and move on with their life without needing to continue filing paperwork with the insurance company for every new expense that arises.
However, a settlement almost always absolves the insurance provider of future liability, which means it will be the only payment someone receives from that company. People, therefore, need to consider the two factors below very carefully to determine whether a particular settlement offer is reasonable or not.
Total expenses
Both current and future expenses will require funds from someone’s insurance settlement. Therefore, they need to have a long-term idea of what the crash will cost them and their immediate family members. Some expenses are easy to establish, as people will have invoices from the hospital and the mechanic who fix their vehicle. Other expenses and losses, like future lost wages and the diminished resale value of the vehicle, will be harder to establish conclusively when negotiating a claim. Although it can be a challenge, it is crucial to put together a realistic working estimate of what the crash will cost if someone hopes to negotiate for an appropriate amount of compensation following a wreck.
Policy limits
The coverage of the driver who was responsible for the crash directly determines what amount of compensation the claimant can receive. Insurance companies will never pay more than the policy limits established when a policyholder purchased their coverage, even if the total cost of the crash far exceeds the bodily injury and property damage liability protection available.
When someone realizes that their total costs are higher than what insurance will pay, they may need to reject a settlement to negotiate a better one or consider alternate means of pursuing compensation, such as a lawsuit against the driver who caused the wreck. Seeking legal guidance to review the details of one’s circumstances following a collision with another driver may make it easier to respond appropriately to a settlement offer from their insurance provider.
