After a car crash, an insurance settlement might be the only financial relief that an injured person receives. While many people are eager to settle as quickly as possible, it is still important to ensure that the settlement amount is appropriate given the losses caused by the crash.
Those feeling pressured by insurance companies and mounting expenses sometimes make the mistake of accepting less than they deserve when settling a claim. They may then have uncovered losses. Validating all three of the financial figures below before accepting a settlement can protect people from compensation shortfalls.
1. Policy limits
An insurance company never pays more than the insured amount. The policy limits that apply to the coverage determine the maximum amount of compensation possible.
2. Current and future medical expenses
Simply adding up unpaid medical bills does not provide an accurate total for the medical expenses generated by a crash. Injured parties may also need assistance as they estimate their future medical expenses, which may need to include increased long-term care costs in their golden years.
3. Lost wages and earning potential
Injuries can impact a person’s income and employment by forcing them to take time off to recover. Those with lasting functional limitations may need to move into lower-paid jobs or may not be able to continue pursuing the best advancement opportunities for their professions.
Individuals who recognize that a settlement offer is well below their total losses and the available coverage may be in a position where more negotiation is necessary. Working with a personal injury attorney during car crash insurance negotiations can help people avoid unfavorably low settlements.
