In the stressful period immediately following a car accident, if another party was at fault, you may be surprised to receive a settlement offer from their insurance company in the weeks following the accident.
Be aware, though, once you sign off on an insurance settlement, you cannot renegotiate your settlement or pursue a lawsuit and court settlement. A car accident attorney can help you avoid these common ways of undercutting car accident insurance payouts.
A Lowball Offer is Made
In the weeks and months following a car accident, you may be in a state of confusion and, if off work, under financial pressure. And that's exactly what the insurance company wants. The quick settlement offer is oftentimes below the insurance amount you are entitled to.
The fair insurance offer is close to the judgment value. You could wait for a judge to rule on the settlement amount. Most cases settle out of court, saving you legal fees. An experienced car accident lawyer will thoroughly assess the details of your case and compare it to current settlement cases to help you arrive at a fair settlement.
Future Health Needs Are Not Fully Covered
If you have been injured in an accident, the claim should not be settled until you are recovered. Notably, if you have been seriously injured, your long-term health situation may not been known for some time.
You could be off work for longer than imagined, have a prolonged illness, or experience complications during your recovery. Night terrors after your accident could develop into a chronic mental health issue. For all these reasons, future medical bills and lost wages are not yet known.
Benefits and Fault Are Underestimated
The insurer's offer oftentimes leaves gaps in the coverage. A quick settlement offer could leave out some types of coverage. In addition to replacing your car, auto accident insurance covers:
- medical expenses
- wages
- mortgage payments/rent
The policy may also cover:
- third party claims
- mental and emotional stress
- death benefits (bereavement, funeral costs)
The insurer will try to establish a fault percentage in its client's favor. If the fault is shared 50/50, for example, your payout could be halved. An accident lawyer will weigh the evidence to estimate what a judge would likely rule if the case were to go to court.
Before settling a claim, be aware that the insurance company will make more offers, each time offering incrementally more money. And also keep in mind that your car accident attorney can negotiate a partial settlement in stages. The car damage and rental, for example, can be settled early.
