If you find yourself involved in an accident caused by someone else’s negligence, the insurance company for the at-fault driver may try to settle with you as quickly as possible. If an offer gets placed on the table it might feel like a relief, but it should be understood that these initial offers rarely will be sufficient to cover 100 percent of your losses. Concerning damages, car accident settlements typically cover medical bills, lost wages, pain and suffering, and other damages. But are they always fair?
The fact is, insurance companies only care about their profit margin and they will not always pay you the amount you should receive. If you don’t closely review the offer, there may be surprise charges.
Insurance Companies Are Not on Your Side
Insurance adjusters may seem friendly and sympathetic, but their real job is to help their employer save money. As an insurer, their job is to pay out as little as possible on your claim, and they do that by chasing fast, low-dollar settlements before you’re able to fully comprehend your damages.
That’s why it’s critical to take your time reading over an offer. Otherwise, if you settle too soon, you could have leftover hospital bills you owe or lost wages that remain unpaid. Remember, insurance companies are for-profit businesses, and they’re motivated to protect their profits — not to make you whole.
A Settlement Should Cover More Than Just Medical Bills
One of the most common things that accident victims do when they receive a settlement offer is focus only on the medical side. Medical bills are one significant aspect of your claim, but they aren’t the only financial loss you might experience.
A fair settlement should include compensation for:
- Future Medical Costs: If you need ongoing treatment, physical therapy, or future surgeries as a result of your injuries, be sure that your settlement meets these costs.
- Lost Wages: You deserve compensation if your injury caused you to miss work. If you can’t return to work at full capacity, your settlement should cover diminished earning potential, too.
- Pain and Suffering: Car accidents are not just costly; they can also have a ripple effect through an individual’s professional life, leading to lost wages or job opportunities. A reasonable settlement should reflect this.
- Property Damage: For accidents that caused damage to your vehicle, your settlement would include the vehicle’s repairs or replacement costs.
A settlement that only covers your current medical bills isn’t enough. You need to consider the full scope of your financial and emotional losses before accepting any offer.
Understanding Insurance Policy Limits
Although you may have significant damages, the insurance company of the person at another driver may limit what you receive in a settlement. A policy limit is the maximum payout your insurance provides. If your losses are greater than the at-fault party’s coverage, the insurance company doesn’t have to pay more than that limit.
However, if your damages are $100,000 and the at-fault driver’s policy gives only $50,000, you might receive that amount unless you seek other legal recourse to collect. Overcome this by:
- Suing the at-fault driver for greater compensation.
- Tap your underinsured motorist coverage (if you have it) to fill the gap.
Understanding what policy limits are and how they impact a claim can help you set realistic expectations about your settlement amount and clarify what to do next if the insurance payout isn’t enough. The insurance claim process but also for a lawsuit if that becomes necessary.
Why Hiring an Experienced Attorney Matters
Negotiating with an insurance company without help can be difficult, particularly if you’re injured and financially strained. Your lawyers understand that insurance companies pay out higher settlements and offer to those who are represented by counsel.
Our personal injury lawyers at The Black Law Company know how to work aggressively to make sure that you are not taken advantage of. We handle car accident settlements and know how to:
- Assess the true value of your claim
- Gather the necessary evidence to support your case
- Negotiate for a higher settlement
- Take legal action if needed
Insurance companies are protecting their interests with lawyers — you should have someone fighting for you as well.
Unrealistic Expectations Can Lead to Disappointment
After a car accident, you might feel overwhelmed and hopeful for a big payout. But you must go in with realistic expectations in negotiations. Your final settlement amount will depend on several factors, including:
- The severity of your injuries
- The total cost of medical treatment
- Whether you share any fault for the accident
- The at-fault party’s insurance policy limits
An attorney will help you set expectations that are realistic given the facts in your case.
The First Offer Is Rarely the Best One
Insurance companies are accustomed to making low-ball offers to claimants, hoping the claimant will just accept it before they realize they deserve more.
You’ll be told that the offer is “fair” or “all they can offer” or some variation; that’s a negotiating tactic. Many times, the first offer is not the last. You can and should negotiate for better. An experienced car accident attorney can negotiate lowball offers and pursue the right compensation for you.
Patience is what you need in these situations. As appealing as it may be to just accept the first offer and move on, negotiating could mean a much larger payout an offer, you can’t turn around and request more money — even if your medical bills are piling up.
What If the Settlement Offer Is Too Low?
While contacting a lawyer isn’t legally required, it’s highly advisable — especially if the insurance provider fails to provide a reasonable settlement. This action is enough to make the insurance company feel that it needs to come up with a higher settlement or risk losing in court.
Many cases settle before trial, but having a lawyer who is willing to litigate can make a real difference in settling. The Black Law Company aggressively advocates for our clients to ensure that they are properly compensated.
How to Know If Your Settlement Is Fair
If you’ve received a settlement offer, ask yourself:
- Does it cover all of your medical expenses, including future costs?
- Has it accounted for lost wages and any future loss of income?
- Does it include compensation for pain and suffering?
- Has your attorney reviewed it and given you their professional opinion?
If the answer to any of these questions is no, then the offer may not be fair, and you should consider negotiating for more.
Get the Settlement You Deserve With The Black Law Company
To bring yourself a settlement that lawfully compensates you for your injuries, you do not have to feel alone. The Black Law Company are skilled attorneys who advocate for the compensation of accident victims in Tampa, Florida.
Before you agree to an offer, call us today for a free consultation at 813 321 7380. We will assess your situation, walk you through your options, and help you decide the best course of action for you.
Don’t allow an insurance company to force you to take less than you deserve—let us fight for you.
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