While most people go years or even decades without ever experiencing a crash, all it takes is one encounter with hazardous conditions to break someone’s lucky streak. They may then face major expenses related to their injuries and the damage to their vehicle.
After a collision, most people expect to receive reasonable compensation from an insurance policy. After all, Kentucky requires liability coverage for people to legally drive. The person at fault for the crash should provide coverage for the other people involved. Combine mandatory insurance with huge advertising budgets maintained by insurance companies, and that is a perfect recipe for a poorly-handled claim.
Many people do not know their rights when dealing with insurance companies. They simply expect to receive a reasonable and fair settlement. However, there is a very good reason that insurance companies want people to settle their claims when car crashes cause significant injuries and property damage.
Settlements end company liability
The bigger someone’s insurance policy is, the more the company may have to pay to affected individuals after a collision. Policy limits determine the maximum amount of compensation available, and insurance providers typically hope to pay far less than the limit on the policy. When someone with a valid claim agrees to a settlement, the insurance provider typically ends its legal and financial liability for the incident. Someone who settles might accept far less than the maximum amount of compensation available and far less than they require.
Settlement offers require careful review
While a first settlement offer is probably not the best option available for someone hurt in a car crash, it may be possible to negotiate a more reasonable settlement amount. People have to have a reasonable idea of their current and future losses. Looking at not just medical bills but estimated future costs is crucial to accurately estimating the costs of a crash.
Only those who understand what a crash might cost them are truly in a position to negotiate or appropriate compensation. People who are familiar with the risks of settling a car crash claim can more effectively pursue compensation after a wreck than those who just trust an insurance company to act in good faith. Choosing to negotiate a first settlement offer instead of accepting it immediately is often a beneficial decision for someone hurt in a crash.