If you’re hurt in a car accident, you may need to recover compensation for your losses, including your medical bills. You can do this by filing an insurance claim.
When you’re the victim of a car accident or a similar personal injury case, you have to realize that the insurance company is not working for you. They’re working against you and for their own financial gain. That’s one of the big reasons to hire an attorney to represent you in these cases.
If you’re in an accident that’s the fault of another driver, the insurance company will try to make a fast offer to settle the claim. If you have an attorney, the attorney will know how to deal with this and make sure that you don’t accept something that’s too low.
So why does the insurance company want to settle quickly?
If they can get you to settle and sign a release, you’re then giving away your right to future compensation. Your claim is over if you sign a general release, and sometimes that can be a very good thing from the perspective of the insurance company.
An insurance company knows an accident victim is going to be anxious to receive compensation as medical bills and other expenses are flooding in. Insurance companies also know that accident victims tend to have no idea the value of their case or what they’re settling for if they aren’t working with a legal professional.
Rarely is it a good idea to accept a fast settlement, despite what the insurer might be trying to push you toward.
While it can seem like the simplest, fastest way to get a resolution, avoid the temptation to agree to an early settlement.
The following are some things to know along the way.
Put Limits on Conversations
When you’re first speaking with an insurance adjuster, which you’ll usually do by phone, you need to be clear that you’re setting boundaries on the conversation, and you won’t be talking about much with them at least at first.
The adjuster needs to know that you’ll be investigating the accident. You’ll also need to have completed your medical treatment and have reached a maximum point of recovery.
Until that point, let the adjuster know you won’t be talking about anything related to how the accident happened, the severity or extent of your injuries, or what a settlement amount should be.
Tell the adjuster to communicate with you in writing until the point you actually begin negotiations, unless you need to talk logistics like getting your car repaired.
The more often an insurance adjuster contacts you, then the more likely they’re trying to get you to settle quickly.
Until you understand more about the accident and the extent of your injuries, you aren’t even going to have any accurate information to share with them, so there’s no need to speak.
Insurance adjusters can also be skilled at getting you to say something they could use against you as an admission of fault on your part or that limits the severity of your injuries. The less you talk, the fewer the opportunities to say something detrimental to your case.
Reviewing the First Settlement Offer
After you’re in an accident, you should contact the insurance company of the at-fault driver right away. The purpose of filing a claim is to let them know that you’re injured by a driver they insure and that you plan to seek damages. You’ll probably be able to submit a personal injury claim online.
After you file a claim, you wait for a response. That’s when you actually begin working with a claims adjuster, who will send you a Reservation of Rights letter.
The letter acknowledges the receipt of the claim and lets you know an adjuster will be investigating.
Once you receive the Reservation of Rights letter, you can submit a demand letter. A demand letter is something you should wait until you’ve fully recovered to submit. You could also wait until you’ve made significant progress in your recovery because you’ll be better able to identify costs and losses related to the accident.
A demand letter should include an explanation of what happened, evidence supporting your argument, and your demands for compensation. You should be detailed about your injuries and resulting costs.
Itemize the costs related to your medical care, property damage, lost wages, disability, and anything else relevant.
These added up are your economic damages. Then, you can assess your non-economic damages.
Non-economic damages are to compensate for emotional trauma and pain and suffering.
Once the insurance company receives your demand letter, they’re required to respond, but there isn’t any particular time limit they have to do so within.
While they may take their time and then have excuses for doing so, in reality, they’re probably just trying to make you impatient to accept whatever offer they send.
Insurance companies are driven by profit, as is the case with any business. Their goal is to minimize any payout they’re giving you. They’ll respond to your demand letter with an offer that’s well below what you’re asking for in almost all cases.
Insurance companies come up with a first offer by looking at your claim and thinking about what future litigation could look like for them.
They think about what a jury might do, and if they don’t think you’d win a court case, their offer will probably be very low.
The insurance company may try to pressure you into accepting a low initial offer, saying that it will expire soon. They may also try to make it seem like you’re lucky to get any offer. If you accept, you do lose the right to pursue any additional compensation.
You can see how it feels like a trap to deal with an insurance company. A lawyer can help you navigate the situation, which is tricky if you aren’t experienced in dealing with insurance adjusters. Their best interest is to get you to settle fast and for the lowest possible amount.