Some car crash insurance claims take weeks or months to complete. The claimant in need of compensation has to repeatedly submit documentation as new costs arise. They may receive piecemeal payments for medical expenses, vehicle repair costs and other financial matters associated with the collision.
Other times, insurance professionals try to resolve the matter fully as quickly as possible. They propose a lump-sum settlement. The claimant receives one payment to cover all of their costs. They don’t have to continue negotiating and communicating with the insurance company. Settlements can be relatively quick and can reduce the stress on those dealing with the financial aftermath of a collision.
For many people, settlements may seem like an attractive option. People involved in commercial truck collisions might receive a settlement offer from the company insuring the semi-truck. Understanding why a company wants to settle may help people be more realistic when evaluating compensation offers following a commercial vehicle crash.
Settlements end company liability
Generally speaking, insurance professionals prefer to settle for less than the policy limits and may try to settle for less than the total cost of the crash if they can. In a commercial collision scenario, settling may seem particularly important because of the size of the policy.
Semi-trucks typically need to have at least $750,000 of liability coverage or even more than that in special circumstances. The insurance company could lose quite a bit if the affected parties seek the full value of their losses related to property damage and injuries.
Particularly in scenarios where people sustain life-altering or fatal injuries, the combined cost of medical care and lost earning potential can eat into the insurance company’s profit margins. Convincing people to settle early for what seems like a reasonable amount is an ideal way for an insurance company to avoid allegations of operating in bad faith or violating the law. At the same time, the company can minimize its losses at the expense of those harmed by insured parties.
Those seeking compensation after semi-truck collisions may need help countering a settlement offer and looking into their legal rights, and that’s okay. Pursuing a personal injury lawsuit is sometimes the best way to obtain appropriate compensation after a crash caused by a semi-truck.