Insurance companies are built on denying and delaying insurance claims. When they do this, they get to keep money and protect their bottom line. They may also believe it is necessary because it leaves them the money they need to pay out really big, serious claims – and they will argue your case is not one of those.
Our lawyers understand that you should almost always deny the first offer. Insurance companies typically keep this offer low to save themselves money, and it might not even be reflective of your damages. It often takes negotiations, and maybe a lawsuit, to get them to bring up the total damages in a fair settlement.
Before you accept any settlement offers from a car insurance company, you should consult with our Dallas car accident lawyers at The Queenan Law Firm by calling (817) 476-1797.
Why is the First Offer from Insurance So Bad?
Insurance companies make the first offer bad, typically on purpose, for a few reasons:
They Hope You Just Take it Without Much Thought
If you take a settlement, the case is over. As part of accepting the settlement, you sign papers saying you will stop any further claims, plus courts will consider the matter literally settled.
They hope you will just take the money and run, and then it is over – and they only paid a smaller amount if they kept the offer low.
They’re Not Thinking About Damages
When calculating an insurance offer, our car accident lawyers will take into account the damages you suffered and try to get all of the damages paid. Insurance companies often take a different approach and calculate initial offers as a “nuisance offer.”
Instead of even taking into account your damages, they will look at how much they think they can pay to get you to accept and stop the case. This may include looking at how much it would cost to fight the average case, then paying a bit less than that.
How Insurance Companies Undervalue Claims
When contacting the insurance company for the driver who caused the car accident, you should be prepared for the motives and tactics the company may have to discredit your claim.
They Want to Pay Less
First and foremost, insurance companies do not want the expense of paying your damages at all. They will do everything they can to cut areas of payment, reduce the valuation of your damages, and otherwise reduce payments.
Tactics
Insurance companies typically turn to these tactics, and others, to drive down costs and delay payment:
- Fail to share vital information with the victim or their representative
- Take an excessive amount of time to process your case
- Use arbitrary reasons to deny or delay your claim
Texas Modified Comparative Fault Rule
The insurance company can also try to reduce how much they pay by banking on you being partially at fault. In an accident case, fault can be assigned to each party involved, including the victim.
If your fault is up to 50%, you can still get paid the defendant’s share of the damages; your total damages are just reduced by your percentage of fault. If you are over 50% at fault, you are cut off from making a claim at all.
Factors that Affect Car Accident Settlement Amounts
To make sure that you are awarded adequate compensation from a car insurance company, there are several factors that should be considered. These factors could increase the amount of money owed to a victim for serious injuries and property damage.
The Severity of the Victim’s Injuries
A victim could emerge from a car crash with bone fractures, head injuries, lacerations, and many other types of injuries. Upon having these injuries examined by a medical practitioner, the victim may find that they may need surgery or other expensive procedures to fully recover. As a result, the victim should thoroughly document their injuries to be used when making a counteroffer to a car insurance company.
Medical Bills
The actual cost of treating your injuries is a huge factor in your damages and settlement amount. You need every dollar covered; you should not have to pay for any of it.
This includes the cost of hospital stays and surgeries, as well as X-rays, physical therapy, and other ongoing care needs into the future for serious injuries.
Loss of Wages
If a victim was severely injured during a crash, they may have to take a few weeks or possibly months from work until they could properly perform their job. Some people with severe injuries will never get back to work at their full capacity.
Lost wages account for past losses, future reduction in wages, and permanent disability. We essentially compare your pre-injury expected wages through retirement to your post-injury expected wages and claim the difference.
Property Damage
As mentioned, the offer should also consider property damage the victim faces. If a victim’s car was totaled during the crash, this would likely substantially increase the damages owed to the victim.
Pain and Suffering
One of the biggest factors is how much pain and suffering you faced. Some of this is accounted for in the general severity of your injuries, but pain and suffering accounts for specific factors, such as
- Physical pain
- Mental anguish
- Emotional distress
- Lost function
- Lost ability
- Embarrassment
- Scarring and disfigurement
- And more.
FAQs for Dealing with Car Insurance in a Car Accident Case
Should You Talk to Insurance on Your Own?
No! Always work with a lawyer. The insurance company will try to talk you into taking low-ball offers or say that this is all you are going to get, so you should settle now.
Often, this is very wrong, and our lawyers can negotiate the claim for you. There are also plenty of traps to fall into while talking to insurance, so just let our lawyers handle it for you.
Can You Settle for More than Policy Limits?
Insurance companies will usually not offer a settlement for more than the policy limit, since that is all they will pay. However, if the damages in your case are above policy limits, you can arrange a settlement where the defendant agrees to pay out of pocket for the rest of the damages.
If the total damages are more than policy limits, the insurance company might want to go to court, hoping the jury will limit damages to the policy limit.
What if the Defendant’s Insurance is Too Low?
If the defendant only has state minimum insurance or it is otherwise too low, you may have underinsured motorist coverage on your own insurance (as part of UM/UIM coverage) that you can use.
This can pay for damages above and beyond what the defendant’s policy covers, potentially helping you get more money if you settle for policy limits.
Do You Have to Settle?
No! If the insurance company’s offers are too low, you can take them to court. Then, we can negotiate a settlement with the pressure of a trial on the horizon, potentially pushing them to raise the offer.
However, if you want to go to trial, that choice is yours, not your lawyer’s, and not the insurance company’s.
How Long Do You Have to File?
Insurance claims should be filed as soon as you can file them to avoid delays. You technically have up to the statute of limitations to get your case filed in court – which is 2 years in many states, including Texas.
Insurance will typically not settle claims after the statute of limitations passes unless your case is already in court by that point.
Call Our Car Accident Lawyers Today
For help with your potential case, call the Abilene, TX car accident lawyers at The Queenan Law Firm at (817) 476-1797 right away.