Many people fear the idea of filing large insurance claims after a crash. They may have heard horror stories about insurance adjusters denying reasonable claims or dragging out the claims process for months. People worry about not having access to the coverage that they require to pay for medical bills or repair their vehicles.
If a representative of the insurance company responds quickly and offers a settlement, people might eagerly accept. They need funds as soon as possible, and a settlement often means getting a check or a bank deposit within days. People may fail to handle settlement offers with the skepticism they truly require because they assume the insurance company made the offer with their best interests at heart. What those involved in car crashes often fail to understand is that the insurance company wants them to accept a settlement quickly for its own protection. Insurance companies do not pay claims on an ongoing piecemeal basis. They usually make one offer of a lump sum to cover all damages, both known and unknown, in a claim. An insurance company makes money by paying the least amount of money it can on any claim. The quicker they settle a claim the quicker they are no longer responsible for an injured person’s injuries and damages. Once settled, the claim is finished forever, regardless of any other expenses the injured person incurred whether past, present or future.
Settlements typically end insurance company liability
Insurance companies usually try to minimize how much they pay out on sizable claims whenever possible. Someone with a large claim after a car crash can continue submitting individual bills, estimate of future causally related bills, and wage loss along with an estimated value of pain and suffering until the compensation they claim reaches the policy limits for the driver at fault for the crash.
Policy limits represents an absolute maximum value an insurance company will pay on any claim, . Most settlements fall far below the applicable policy limits. .However, on a serious injury claim, the insurance company will try to settle the claim for as little as possible to save money on the claim. The insurance company seeks to end liability by arranging a settlement. Someone who signs a settlement agreement, release, or cashes a settlement check typically absolves the insurance company of future financial responsibility. They will not be able to get additional compensation even though they have major expenses.
People should be very cautious when evaluating settlement offers. If an offer is well below policy limits and the injured person has suffered a significant permanent injury, they may need to look carefully at their bills and expenses, both past and future, along with any permanent injury including pain and suffering. A settlement offer by an insurance company is a negotiable offer. If the injured person is not satisfied with the insurance company’s final offer they need not accept it and should consult with an experienced personal injury attorney.
