There are usually two main options for compensation after a motor vehicle collision. Some people have to go to court. Many others can obtain compensation through insurance. Drivers should generally have liability coverage to comply with state statutes. They should carry both bodily injury protection and property damage protection. Those affected by a crash where another person is at fault may receive a settlement offer.
The insurance company may offer them a one-time payment for all of their expenses. Before accepting that settlement, asking the three questions below can be quite helpful.
How much coverage is available?
Many drivers only carry the minimum amount of insurance required by the state. Depending on the circumstances, that might mean as little as $25,000 of bodily injury coverage and another $25,000 for injury-related expenses. Many people carry much higher bodily injury coverage amounts in particular. If the offer is far below the applicable policy limits, that should be reason to evaluate it carefully.
Does the settlement cover all current outstanding costs?
There are three types of significant losses that people may have already accumulated by the time an insurance professional offers a settlement. They may have massive vehicle repair or replacement expenses. They may also have hospital bills from their medical care after they got hurt. Finally, they may have lost wages that accrued while they were undergoing care following the collision. Particularly when a settlement amount is below the policy limits, if it is less than the current losses an individual has sustained, then it may not be in their best interests to accept the settlement.
Is there anything left for future expenses?
Injuries do not simply disappear after initial treatment ends. People may have additional expenses in the future. Someone with an immobilized limb following surgery to set a spiral fracture may have significant physical therapy costs in the future, for example. A person who was able to repair their vehicle may have to consider the future diminished value of the vehicle when they need to sell it or trade it in to acquire their next vehicle. It can be very difficult for people already dealing with the stress of the collision to earnestly and effectively evaluate a settlement offer.
It may be even more challenging to try to counter a low settlement offer. Acquiring assistance when reviewing settlements and other options for compensation after a car crash can help people protect themselves. The right support makes it easier for people to limit the financial consequences of a recent car wreck.