Many people are immediately aware of the financial impact of a crash as soon as it occurs. They know it may cost thousands to repair their vehicles and even more to get medical care. Many people feel anxious about the need to negotiate with insurance companies.
The idea of seeking compensation on a rolling basis for expenses as they arise can seem like an interminable responsibility after a wreck. Compared to an open-ended claims process, an insurance settlement might seem like an expedient solution.
The party making the claim negotiates with the insurance company for a single payment to cover all of their collision expenses. Settlements are efficient, but insurance companies offer them for a reason. Many people settle car crash insurance claims without considering certain expenses and then have few options available to them later.
A settlement is a one-time payment
When people affected by car wrecks settle their claims, they effectively give up the right to request compensation later. The insurance company pays one amount and no longer has liability for any future expenses. A settlement has to cover not just the current bills and invoices generated by the crash but future losses as well. It is necessary to look beyond immediate expenses to identify costs that could cause issues later.
People have to consider how a record of a crash might diminish what their car is worth when they sell it or use it as a trade-in later. They also have to consider the long-term support needs for their injuries. They may continue to require medication or other medical care for years to come. Continued symptoms after an initial diagnosis could also have a major impact on earnings potential. Some people have to change their jobs. Others may lose out on advancement opportunities. They have to consider how their functional limitations affect their long-term earning potential.
It can be difficult for people thinking about the consequences of car crash injuries to set a value on the long-term economic impact of the collision. It can be even more challenging to validate that figure when negotiating with an insurance company. Those seeking compensation through insurance after a motor vehicle collision may need help, and that’s okay.
An attorney can review policy documents, estimate losses and oversee negotiations. They can also provide insight into alternate options for compensation, such as personal injury lawsuits. Thinking about future losses can help people avoid scenarios in which they settle car insurance claims for far less than the value of their overall damage.