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Should you settle your insurance claim after a car crash?

On Behalf of | Oct 26, 2022 | Personal Injury

Car crashes occur daily in Indiana, and most of them are relatively minor. They cause property damage or short-term injuries. Of course, other crashes could be far worse than the average collision in Indiana. Some people have to buy new vehicles because a crash causes such severe damage that theirs is no longer safe to drive. Others may have injuries that require trauma care after the crash and may lead to a leave of absence from their employment and thus a drop in their income.

The worse an injury is, the more likely it is to cause significant financial hardship. Once your vehicle repair or medical bills start accumulating, you will likely feel anxious to get money from the insurance company. The adjuster could offer a settlement. The amount will vary depending on the situation and coverage available, but the average car insurance settlement is around $20,000.

Should you settle your claim for a one-time payment to get the process over with quickly?

Settlements often benefit the company more than the claimant

One of the reasons that insurance adjusters offer settlements after car crashes is so that the company won’t have to keep making payments on a claim even if the costs continue to rise. Typically, a settlement agreement after a car crash absolves the insurance company of future financial responsibility, which can save the business a lot of money.

If you settle for a third of what the policy might pay and then you continue to have new bills, you won’t be able to go back and ask the insurance company for more. Although you could pursue a bad faith insurance claim in extreme cases, doing so can be a lengthy and frustrating process. It is likely a better option to counter the settlement offer with a more reasonable figure or reject the offer outright.

You need to know what the crash will cost you

Before you cash a check from the insurance company or agree to a certain amount of compensation, you need to know conclusively what the crash will cost you. Many individuals benefit from professional help when determining the cost of a crash or when negotiating with an insurance company to secure a more reasonable settlement amount.

Understanding your rights, including the right to appropriate compensation, can help you better handle your interactions with an insurance company after a car crash.