Car crashes create immediate bills that seem to just keep piling up as the days pass. While you may initially only have a tow truck bill and an estimate from the repair shop, more bills will inevitably arrive in the mail.
You may eventually have thousands of dollars in medical bills and even more in lost wages. You could also have thousands of dollars of lost equity due to owning a repaired vehicle with diminished resale value. Securing an appropriate insurance settlement for your costs can be more challenging than you realize.
Although federal and state laws do require that insurance providers behave in good faith when responding to claims, they are frequently aggressive about minimizing their costs and may offer settlements that leave people with big bills that they have no way to pay. Before you accept a settlement, you need to review two separate considerations.
What the policy could pay
Obviously, there are limits to what insurance will cover. Specifically, there is a policy limit that establishes the maximum amount you could possibly hope to receive.
Most insurance companies will aggressively attempt to pay less than the policy limit after a car crash. You need to understand how much coverage is available both on the other driver’s policy and your own to maximize how much compensation you receive.
What the crash will actually cost you
It can be difficult to estimate future lost wages and medical expenses, but doing so will be a very important step for someone negotiating an insurance settlement. You may need to do some digital research or communicate with an attorney familiar with the kind of injuries you have suffered to estimate your lifetime costs. Some people quickly realize that even the maximum amount available through the policy will leave them with uncovered expenses.
When you have a rough estimate, you then are in a better position to counter the initial settlement offer provided by the insurance company. Many people find that negotiating a settlement is beyond their capabilities, and they rely on professional support to get the payments they need following a car crash.
Understanding the risks involved with an insurance settlement can help you protect yourself after a motor vehicle collision.