Settling an auto insurance claim prevents an injured party from needing to litigate and possibly not being awarded any compensation. Settlements, however, often require extensive negotiation before the offer will be enticing enough to accept. Below is advice on when to accept or demand more in an auto insurance settlement offer.
The Amount Covers Your Expenses
Auto accident settlements are intended to put the injured party in the position he or she was in before the accident. Settlements are not to be used to make a party wealthy. If the offer pays for all incurred costs, you should seriously consider accepting.
The Amount Covers Anticipated Future Expenses
Many times, injured parties will need future medical care for their injuries. A good offer will include compensation for these expenses if the party requested them in their claim. If the offer includes funds for future expenses, you should consider accepting.
The Amount Is Broken Down
A good settlement offer will be broken down to specifically identify the values given and awarded to each item for which compensation was requested. This may or may not appear in a list in the settlement offer; at the very least it should be in the paragraph of the offer. Sometimes, this breakdown will be delivered only upon request. If this breakdown is not included in your offer, inquire into its availability.
The Offer is Really Low
An offer that is so low that it will only pay for a small portion of expenses should be handled carefully. Most likely, this offer does not take into account the full extent of your damages and injuries. A settlement offer is binding; if the offer is not enough to cover the minimal amount you need to become whole once again, consider demanding more compensation.
The Offer Does Not Cover a Type of Expense
A settlement offer that does not compensate you for a portion of your expenses should be seriously considered prior to acceptance. Because settlements are final, accepting an offer that does not compensate you for a specific type of expense may prevent you from later seeking compensation for that cost. The breakdown of expenses will assist you in determining whether the offer does not cover a specific cost.
Getting Legal Help
If you have received a settlement offer and do not know whether you should accept it, seek legal advice. An attorney will review the facts of your case, the amounts of your expenses and the amount of the offer and advise you on whether to accept it or demand more money.
