Obtaining car insurance compensation after a crash can be a headache. Frequently, the process may take multiple months. The party affected by the crash may have to repeatedly submit invoices to the insurance company to obtain compensation.
Waiting for a response and for funds can be quite stressful and also frustrating. Especially when people cannot work because of car crash injuries, they rely on insurance to cover crucial expenses. Sometimes, insurance providers make a settlement offer that could provide lump sum compensation for all of the coverable losses generated by a crash.
People who receive settlement offers need to review them carefully to ensure the insurance company doesn’t take advantage of them. Asking the three questions below can help determine if a settlement offer is reasonable or not.
What are the policy limits?
The first question to ask when determining if a settlement is reasonable relates to the policy limits that apply. No matter how expensive crash costs become, insurance companies never pay more than the applicable policy limits. Establishing how much coverage the other driver actually had is a key aspect of any settlement evaluation. If the settlement offered is the same amount as the policy limit, no amount of negotiation is likely to improve the offer.
What expenses already require payment?
People involved in car crashes may have numerous different bills they need to cover. They may have a tow company invoice from getting their vehicle to the shop and repair invoices as well. They may also have bills for the emergency medical care that they required. People may also need to consider any leave from work they had to take to undergo treatment or recover from their injuries. If the settlement offer does not fully cover all of the current expenses related to the crash, then it is likely too low.
What future costs may arise?
Expenses don’t end in the first day or two after a crash. They may continue accruing for weeks or even years in cases involving more serious injuries. People need to consider the cost of necessary future medical care, any long-term impacts or injuries may have on their earning potential and even the diminished resale value of their vehicles. Those costs that arise in the future are not eligible for compensation if someone has previously negotiated a settlement with the insurance provider. The settlement has to cover both current expenses and future costs as well.
Many times, people have a hard time performing a thorough evaluation of their expenses and the settlement offer provided by a insurance company. They may have an even more difficult time negotiating with insurance professionals. Having support throughout a complex car crash insurance claim may make it easier for injured people to get the compensation they deserve. Insurance companies often count on people accepting a settlement offer without reviewing it carefully first.