Expenses can accumulate rapidly after a motor vehicle collision. People may have immediate expenses related to towing and repairing their vehicles. They may also have replacement transportation costs.
Injuries are another source of financial pressure. Ambulance rides, emergency care at a hospital and treatment for traumatic injuries can cost tens of thousands of dollars. Then there are the lost wages of the injured person to consider. The worse a person’s injuries are, the longer they may be unable to work their usual job.
That can create mounting financial pressure with devastating consequences. Those struggling to pay their bills after a serious car crash may make the mistake of prematurely accepting an insurance settlement. They may then regret that decision because it leaves them struggling financially.
Why settlements are a risk
Insurance companies want to generate profits, just like any other business. They achieve that goal by taking in more in policy premiums than they pay in claims. Insurance professionals often offer settlements that are well below the policy limits that apply. In other words, the settlement amount is less than the maximum amount of compensation a person might theoretically be able to receive.
The settlement amount may also be substantially lower than the total amount of losses sustained by a person with serious car crash injuries. The settlement represents the only compensation they may ever receive from the insurance company. It has to cover their current and future medical expenses and their lost wages, as well as their property damage losses.
Even if those who accept settlements have proof of major additional expenses in the future, they typically cannot request any supplemental compensation from the insurance company after accepting a settlement.
How to avoid the settlement trap
Those trying to cover their losses after a car crash may need help evaluating the policy of the driver at fault for the collision. They also need assistance estimating their losses, including future lost income and medical expenses. Even communicating with an insurance company can be a challenge for those dealing with injuries and financial pressure.
A personal injury attorney can handle all of those challenges on behalf of their clients. They can identify common insurance tactics and help their clients respond effectively to settlements that are too low. An attorney can also recognize when an insurance company is not addressing a claim in good faith and litigation might be necessary to fully cover all of the expenses generated by a wreck.
Securing guidance before agreeing to a settlement or providing a recorded statement to insurance professionals can help people ensure their optimal financial recovery after a car crash. Those who are aware of the risks can more effectively avoid the pitfalls of manipulative insurance tactics accordingly.