People who feel panicked or stressed are at risk of making poor choices. Stress compromises rational decision-making capabilities. Individuals involved in motor vehicle collisions may not handle the aftermath appropriately if they do not have a pre-existing plan.
There are countless errors possible when responding to a car crash, especially if people hope to hold the other driver accountable. Some errors are far more common than others. Typically, people rely on insurance as their first line of protection after a collision occurs. Being aware of one of the most common mistakes people make during collision insurance claims can help limit the likelihood of major financial losses.
First settlement offers may not be fair
The law requires that drivers carry liability insurance coverage. People who focus on legal compliance, rather than personal protection, should have $20,000 in property damage liability coverage. They should also carry $25,000 in bodily injury coverage in case they cause a crash where one person gets hurt. The minimum coverage amount doubles to $50,000 if a single incident injures two or more people.
Many drivers carry substantially more than the minimum amount of coverage. They want to protect themselves from liability, not just meet the basic legal standards to drive. Insurance professionals responding to sizable claims generally try to offer less than the maximum amount of coverage available.
The first settlement offer is often a starting point for negotiations, rather than a firm offer based on the absolute limits of coverage and likely losses of the party filing the claim. People who simply accept the first settlement offer do receive money promptly in most cases.
However, they may accept far less than they deserve given the provable consequences of the wreck. Additionally, once they accept the settlement, they generally are not in the position to ask the insurance company for additional compensation, regardless of the gap between the settlement they accepted and their actual losses.
Before accepting an insurance settlement, reviewing the coverage available and estimating likely expenses can help people negotiate. Retaining legal support when dealing with an insurance company or looking into other options for compensation, including a personal injury lawsuit, can help people limit the hardship caused by a car crash.