What Factors Do You Need to Consider Before You Accept an Insurance Settlement?

When you get injured in a car accident in Pennsylvania, the best-case scenario is quickly receiving an insurance settlement that allows you to start moving on with your life. But before you accept an insurance settlement, you need to be very careful to ensure that it is in your best interests. This means that you should consult with an experienced Allentown car accident lawyer who can help you understand the true value of your claim.

Why do you need to be careful? There are three key considerations:

• Once you accept an insurance settlement after a car accident, your claim is over. You can’t go back and ask for more.
• The financial and non-financial costs associated with accident-related injuries can be substantial, and in many cases, accident victims can face costs for years to come.
• The insurance companies are not on your side. If you received a quick settlement offer after filing your claim, it is almost certainly for less than you deserve.

What You Need to Know Before You Accept an Insurance Settlement for a Car Accident

With these considerations in mind, what do you need to do in order to make an informed decision? Here are some key factors to take into account before settling an insurance claim for a car accident in Pennsylvania:

1. How Much is the Accident Going to Cost You Out-of-Pocket?

If you have an insurance claim for injuries you sustained in a car accident, you are entitled to just compensation for all of your present and future costs resulting from the collision. As a result, before you accept a settlement, you need to know not only how much the accident has already cost you out of pocket, but how much it is going to cost you out-of-pocket as well.

This means that you need to have a clear and comprehensive understanding of:

• Your future treatment needs related to the accident (including physical and psychological therapy);
• How long you will be unable to work as a result of the accident; and,
• Any other out-of-pocket costs you will be forced to incur due to the collision.

If you haven’t fully assessed the long-term costs of your injuries, you don’t know how much you are entitled to recover—and this means that you are not in a position to make an informed decision about whether to accept a settlement.

2. How Much Are You Entitled to Receive for Your Non-Financial Losses?

If you are entitled to just compensation for your financial losses, you are entitled to just compensation for your non-financial losses as well. This includes your present and future pain and suffering, emotional distress, and loss of enjoyment of life. If you have permanent scars from the accident, if you have a disability, or if you have lost certain bodily functions, these are non-financial losses for which you can (and should) seek just compensation as well.

Determining what constitutes “just” compensation for your non-financial losses requires an in-depth understanding of your injuries’ long-term effects. It also requires an in-depth understanding of Pennsylvania law. As a result, practically speaking, gaining a clear understanding of the full value of your insurance claim requires working with an experienced Allentown car accident lawyer who has your best interests in mind.

3. Is the Insurance Company Factoring Partial Fault Into Its Settlement Offer?

In many cases, insurance companies try to limit their liability for car accidents by claiming victims are partially responsible for their own injuries. In Pennsylvania, insurance companies can reduce their payouts to accident victims who are 50 percent or less at fault for their injuries, and they can deny payouts to accident victims whose share of liability is 51 percent or more.

If the insurance company is accusing you of being partially at fault, this is a critical fact you need to know. In this scenario, you also need to independently assess whether you were partially at fault—you should not take the insurance company at its word. Here too, ensuring you make informed decisions involves working with an experienced Allentown car accident lawyer who can conduct an independent investigation and provide an unbiased assessment of liability.

4. What Else Is the Insurance Company Using to Calculate Its Settlement Offer?

Along with determining whether the insurance company is factoring partial fault into its settlement offer, you also need to consider what else the insurance company is using to calculate its proposed settlement. Have you provided the insurance company with:

• Documentation of your long-term medical needs?
• Documentation of your income and employment history?
• Documentation of your pain, suffering, and other non-financial losses?

If your answer to any of these questions is “No,” then the insurance company has no way of knowing how much you deserve to recover. As a result, it has no way of calculating a fair settlement offer, and it is not going to err on the side of paying too much.

5. Are You Sure You Aren’t Leaving Money On the Table?

Ultimately, if you are facing losses due to a car accident in Pennsylvania, you need to ensure that you are not leaving any money on the table. As we discussed above, the financial and non-financial losses associated with accident-related injuries can be substantial—and they are often far more substantial than accident victims realize.

An experienced Allentown car accident lawyer can accurately calculate the value of your claim for you, and then your lawyer can negotiate for a fair settlement on your behalf. You do not have to handle your insurance claim on your own, and you do not have to pay anything out-of-pocket to hire an experienced lawyer to help you.  

Schedule a Free Consultation with an Allentown Car Accident Lawyer Today

Were you injured in a car accident in Pennsylvania? If so, we strongly encourage you to contact us before you accept an insurance settlement. To discuss your claim with an experienced Allentown car accident lawyer in confidence, call us at 888-777-7098 or tell us how we can get in touch online today.