Few enjoy dealing with insurance companies, especially after an accident caused by another party. However, you may need to communicate with your or another insurance company after a car accident, slip and fall, or other accident caused by another person or entity. Learn more in this article about how insurance companies negotiate settlements. You can always have a personal injury attorney review your case to determine eligibility for compensation.
What Is An Insurance Settlement?
An insurance settlement is an agreement between the plaintiff and defendant in a claim to settle the matter with a payment to prevent a lawsuit. Consumers are most familiar with insurance settlements involving a car accident or property claim, such as from a storm or fire. Most accidents and incidents with insurance claims usually result in a settlement out of court between the parties. It’s generally preferable for the parties to agree to end the matter with a financial settlement without litigation. Lawsuits are expensive, time-consuming, and expensive.How An Insurance Settlement Works
Suppose another driver runs a red light and hits your vehicle in a busy intersection. Your car is totaled, and you have a ruptured disc in your lumbar spine. You have approximately $30,000 in medical bills and lost earnings. Below are the typical steps in an auto accident insurance claim. You should always have a personal injury lawyer represent you when another party causes your accident and injury:File An Insurance Claim
After a car accident caused by another party, you need to file a car accident claim. You should call your car insurance company immediately to report the accident. Some of the damages you can have from a car accident include:- Medical bills
- Lost earnings
- Pain and suffering
- Disability
- Mental anguish
- Lost the ability to enjoy life
- Lost earning capacity
Accident Investigation
The liable party’s insurance company will investigate the crash when you file a claim. Be wary when they do so: The insurance company can try to blame you for the accident. Insurance companies want to minimize their payout. Have your car accident attorney keep the pressure on and ensure the insurance company doesn’t blame you. Your auto accident lawyer will do their own accident investigation. They will review the available evidence to conclude who caused the accident and how.Demand Letter
Next, your auto accident attorney will determine what your damages are. This involves understanding your current and future medical needs, lost earnings, potential lost earning capacity, and degree of pain and suffering. Their estimate will be based on the case evidence. They will send the insurance company a demand letter. It contains all information about the accident, who caused it, and your damages. It will demand a sum to end the case without filing a personal injury lawsuit. The liable insurance company will review the demand letter and make a decision.Insurance Company Decision
The liable insurance company will approve or deny the claim after a few weeks or months. If the insurance company denies the claim, your auto accident attorney will appeal the decision. It may accept liability but offer less than you deserve for compensation. This is when hiring a car accident attorney is so essential.Seeking A Fair Insurance Settlement
The insurance company will likely offer less than you deserve for your injuries and damages. A skilled car accident attorney will negotiate for the most money based on the evidence of your losses. For example, they may use your medical reports and doctor’s statements to show the severity of your injuries and limitations. Your personal injury attorney will continue negotiating with the insurance company until they make their final offer. It’s up to you whether to accept or move on to a personal injury lawsuit. Listening to your attorney’s experienced advice in this critical matter is recommended.File A Personal Injury Lawsuit
Most insurance claims with injuries end with an out-of-court settlement. It’s usually to the benefit of all parties to end the matter with a financial settlement. You get money in your hands faster and avoid going to court. However, the insurance company may deny liability or offer too little. In these situations, your personal injury attorney may recommend filing a lawsuit and going to court. Your attorney will prepare the case for trial and attempt to convince the jury to agree with you. Going to trial is risky because juries are unpredictable, but your attorney will recommend it if they think you will win.Why Does A Car Accident Insurance Settlement Take So Long?
Any insurance settlement may take longer than we would like. This can be especially true when you have a serious injury after a car or other type of accident caused by another person. Common reasons for insurance settlement delays include:Ongoing Medical Treatments
Your attorney will recommend completing your medical treatments and recovering as much as possible before entering a settlement discussion. You may take weeks or months to reach maximum medical improvement or MMI. This may be frustrating, but it’s critical to understand all of your future medical needs before agreeing to settle your case.Liability Disputes
You say that the other driver caused the car accident. They say you caused it. Any disagreement over fault can lengthen the auto accident settlement process. Your attorney and other stakeholders may review police reports, eyewitness statements, surveillance videos, photos and videos of the crash scene, and other evidence. This process can add months to the settlement process. Always get a personal injury attorney involved as early as possible to ensure you aren’t unfairly blamed for the accident.Case Complexity
A case involving a severe injury, multiple liable parties, or significant property damage can be more difficult to settle. For example, a brain injury claim after a truck accident can take a year or more to settle because of the high dollar values involved. Always have a personal injury attorney negotiate the best settlement for you. They understand what your claim is worth and how to deal effectively with a hostile insurance company.Insurance Company Delays
Some insurance companies may delay the claims process to encourage you to settle for less. Never fall for it. Rely on your auto accident attorney to keep the pressure on the insurance company for a fair, fast settlement.Negotiations Take Time
Getting the most for your accident claim may take longer than you like. There can be several offers and counteroffers in a serious accident claim, which can take months. A skilled personal injury attorney will keep you updated on the settlement negotiations.How Do You Get An Insurance Settlement?
Suppose your attorney negotiates a car accident settlement for $30,000 for your injuries, property damage, and lost earnings. The settlement payment will usually be made to your personal injury attorney’s office. The attorney will deduct their contingency fee for their services - usually between 33 percent and 40 percent. Also, they will deduct any legal expenses, such as court filing fees, expert witness fees, etc. Then, the law office will write you a check or wire you the rest.Common Insurance Settlement Mistakes
Everyone wants to get their auto accident settlement quickly and move on. However, insurance companies seldom move at the speed we prefer. Make sure that you don’t make the mistakes below during the insurance claim process:Settling Too Fast
You suffered an injury in a crash and can’t work, so the first insurance settlement offer may tempt you. The insurance company banks on you jumping on the initial low offer. That’s why an insurance adjuster may call you hours after the accident. A common tactic is to call and offer to ‘pay your medical bills.’ The insurance adjuster knows that most accident victims think that’s all they should receive after another party causes an accident and injury. You can agree, not realizing that you are entitled to more. The insurance adjuster wants you to settle before talking to an attorney.Not Reporting Every Injury
Insurance companies hope that you don’t report all accident injuries. The fewer injuries you mention, the less money the insurance company needs to pay. Ensure you get immediate medical treatment and report every injury, ache, and pain after the accident. They will use it against you if you delay medical care or forget to report injuries.Gaps In Treatment
The insurance company wants you to delay going to the doctor for a month. Or, you go to the doctor and don’t follow the treatment plan. Doing these things will damage your claim. Always get prompt treatment and strictly follow the doctor’s treatment plan.Not Documenting The Case
Taking photos and videos after a car accident is often helpful to your attorney. Getting the accident vehicle positions and damages before they are moved can help determine liability. If you are too injured, ask someone nearby to take photos and video with their cell phone. Also, carefully document your expenses from the accident and how you feel. Writing down or recording a video journal can be important for determining your pain and suffering compensation.Admitting Fault
People tend to talk too much after a serious car accident. You might even say that you caused the accident when you didn’t. Don’t talk about blame after the crash. Instead, call the police and a car accident lawyer. Your attorney will have an easier time obtaining compensation for you if they don’t need to ‘clean up’ the detrimental things you said after the accident.Signing Legal Documents Without An Attorney Present
Never sign any insurance settlement or other legal paperwork without consulting an attorney. You only have one chance to demand fair payment for your losses. Once you sign a settlement document, you cannot undo it. Hiring a personal injury attorney will help you avoid common mistakes. It’s always best to hire a personal injury attorney as soon as possible so they can work on your case right away. Your attorney will fight for your rights and ensure you receive the most money for your injuries. Plus, the attorney will assess the case and only take it if they think it will result in compensation.How Much Will Your Insurance Settlement Be?
Estimating an insurance settlement without knowing the underlying facts is never easy. Some serious accident claims are worth $10,000. Others are worth $10 million. The following factors will influence your settlement:- Injury severity: People with severe injuries get larger settlements than those with minor injuries. Brain injuries are worth more than broken bones, and broken bones are worth more than sprains and strains.
- Medical expenses: A major injury with $100,000 in medical bills is worth more than a claim with $10,000 in medical bills.
- Lost earnings: People permanently disabled from an accident will receive more money for lost earnings and earning capacity.
- Pain and suffering: A severe injury with immense pain and suffering is worth more than a less severe injury.