People recovering from a major car crash often have a long road ahead of them. Even treatable injuries like broken bones lead to months of limited function. Injured people often need to take time away from work, and they may end up struggling to cover their costs in the meantime.
When it is clear that another driver was at fault for the crash, an injured person can pursue an insurance claim. Insurance compensation can replace lost wages, pay for medical care and help repair or replace a vehicle. Frequently, the claims process lasts for months as people submit invoices to insurance professionals and wait for payments.
In some cases, the process is much faster because the insurance company offers a lump-sum settlement. Enthusiasm about a faster claims process can lead to people accepting a settlement that might not be reasonable given their losses. The following are some of the warning signs that a settlement is too low.
The amount is below policy limits
Particularly in cases involving significant injuries and lost income, the total amount of insurance coverage available might be lower than the losses generated by the crash. In such cases, injured parties may receive the maximum amount of compensation available based on the policy limits. If the settlement offer is clearly lower than the maximum amount of coverage available, that is a warning sign of an unfair settlement.
The offer only reflects current expenses
Sometimes, a settlement offer seems reasonable initially. The injured party may look at their current medical bills and repair invoices. The amount offered may match the sum of those expenses. While that may seem reasonable at first, the potential for ongoing expenses is an important consideration. From the diminished resale value of the vehicle and future medical expenses to long-term losses caused by reduced earning potential, there are future expenses that can drastically alter the financial impact of a collision.
The insurance professional refuses to communicate
One of the more common negotiation tactics utilized by insurance professionals involves stonewalling. They limit communications or refuse to respond to inquiries made by claimants. The goal is to frustrate the other party into giving up and accepting whatever terms the insurance company offers. In cases where an insurance professional isn’t responsive to questions about what seems like a low settlement or where they refuse to negotiate, there may be reason to worry about them trying to manipulate the claims process.
People who have assistance when seeking insurance compensation after a significant car crash may have a better chance of obtaining a favorable outcome than those who manage the entire process on their own behalf. Recognizing the warning signs of an insufficient settlement can help people understand when they might be in particular need of support.