There are two primary options for financial compensation after a car crash. Many people cover their expenses by filing insurance claims. Drivers generally have an obligation to carry liability coverage that can pay for the cost of others if they are the party at fault for a crash.
If the driver doesn’t have insurance or if their policy isn’t large enough, possibly because they carry the least insurance they can, then the other people involved in the crash can file a personal injury lawsuit. They can take legal action against the other driver or even third parties with a degree of liability for the incident.
Many people hope to secure the compensation they need through insurance claims instead of through litigation. Property damage and bodily injury liability coverage can both help cover the costs of a wreck. If the insurance company offers a settlement, many people are quick to accept. They may not realize that they may leave themselves at a disadvantage by accepting the first settlement offer.
Settling ends the claims process
Insurance professionals are quick to offer settlements because they protect the company. When the claimant agrees to a settlement, they release the insurance company from ongoing liability. Even if they have significant future costs, they usually cannot request additional compensation.
The first settlement offer could be far lower than the total costs generated by the crash and the maximum amount of coverage available. The goal of the insurance professionals is often to limit the company’s losses. A low settlement offer gives the company room to negotiate.
People reviewing settlement offers need to think about their total losses and potential future expenses. Ongoing medical costs and lost earning potential can both contribute substantially to the overall expenses generated by a collision. People desperate to pay their hospital bills may not realize that settling puts them at risk of receiving insufficient compensation. They may need help estimating their costs and communicating with the insurance company.
In scenarios where the coverage available is lower than the estimated crash costs, it may be necessary to look into the possibility of a civil lawsuit. Seeking compensation after a car crash with a skilled legal team can help people cover their expenses and move on with their lives. Those who have received settlement offers may need support evaluating the offers and countering them, and that’s okay.