The Law Offices of Ossie Brown
P 225-424-7388

How can you tell if an insurance offer is too low after a crash?

Most people find themselves facing serious financial concerns in the days immediately following a serious motor vehicle crash. Major injuries often mean that you can't return to work. Even if you have short-term or temporary disability insurance available, you will likely have to miss several days of work before those benefits start.

It could be weeks before you receive any sort of check from the insurance company. There are also medical expenses to consider along with the expense related to the repair or replacement of your vehicle. You may find yourself with extremely low cash reserves or even living on credit in the days that follow a major collision.

Unfortunately, insurance companies may look to take advantage of people experiencing financial strain after a collision. That is why you need to be cautious about any initial settlement offer you receive in the wake of a major crash.

Insurance companies want to make money, not give it away

You may feel a sense of loyalty toward your insurance company. Consumers often think that because they pay their premiums on time and have used the same insurance company for years that the insurance company will look out for their best interest.

Unfortunately, insurance companies are typically profit-based businesses. They are more than happy to take your premium payments, but they are less enthusiastic about paying out benefits after a big crash. Chances are good that your insurance company will ask you to wait for payment until after they subrogate the claim to the other driver's insurance company.

In that situation, any settlement offer you receive is likely to come from the other driver's insurance company, which you may have no direct relationship with. Insurers understand the financial difficulty that comes after a crash, and they know that you are likely in need of quick income.

They will capitalize on this need by offering you far less than your claim is actually worth. Too many people jump at the chance to sign a settlement agreement after a crash without thoroughly evaluating their costs.

Take the time to count up your losses

As previously discussed, motor vehicle crashes can give rise to a number of different financial strains for your family's income. You should be diligent in adding up estimates and existing costs to determine what the overall financial impact of the crash will be.

Include vehicle repair costs, medical expenses and lost wages in that calculation. Look at all of your current expenses, as well as likely future expenses.

If the settlement doesn't cover all of that amount, it may be time to consider refusing the settlement offer and either sending over a counter offer or pursuing legal action to recover your losses after a crash.

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The Law Offices of Ossie Brown
123 Saint Ferdinand Street
Baton Rouge, LA 70802

Phone: 225-424-7388
Fax: 225-334-7824
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