Car Accident Settlement: How to Maximize from Your Insurance Company

Usually, if another driver hits you, you may file a claim to receive a car accident settlement for the damages. The at-fault driver’s insurance provider will cover the damage expenses in such an instance. However, most insurance companies practice several strategies to reduce a victim’s settlement, giving them little to no money.

Suppose you are involved in a car accident and want to understand how to maximize your payout. In that case, this article will help you determine some tactics insurance companies employ to reduce your settlement.

When Do Insurance Companies Pay for the Damages of a Crash?

People usually obtain insurance policies for financial security in case of an accident. In fact, in California, drivers must possess the minimum insurance requirements of the following before having the right to operate a vehicle:

$15,000 for one victim’s harm or untimely death.
$30,000 for multiple victim injuries or tragic deaths.
$5,000 for harm to property.

However, insurance providers don’t always cover your damage expenses in a car accident. Your right to compensation for the damages typically depends on the terms of your policy. This is especially true if you are at fault for the collision.

On the other hand, you may receive compensation for the damages if the auto crash results from another driver’s wrongful actions or negligence. In such a case, you can file a personal injury claim against the at-fault party if you can successfully prove that the collision results from the other driver’s actions.

In personal injury, you must demonstrate the following elements of negligence to have the right to a car accident settlement:

It was the driver’s duty to ensure everyone’s safety.
They did not perform this obligation.
It was this duty breach that led to the accident.
The accident resulted in injuries and other damages.

Remember that when proving negligence, the at-fault party’s insurance provider will typically ask for evidence to confirm their client’s liability. This is why you must collect evidence at the accident scene, such as:

Photos taken at the accident scene
Footage captured by dash or surveillance cameras
Statements from witnesses
Police report
Medical documents, such as hospital bills and diagnosis
Receipts showing vehicle repair costs

Can I Still Receive a Car Accident Settlement Hit by an Uninsured or Hit-and-Run Driver?

Victims often have the right to compensation if they can successfully file a claim and prove another driver’s liability in a car crash; what about hit-and-run crashes?

Let’s say the negligent motorist tries to leave the scene. In that scenario, the driver’s vehicle plate number or a witness’s physical description of the motorist can help the authorities track them down. You have the right to file a case against the driver if located.

However, what happens if police can’t locate them or an uninsured driver hits you? Receiving accident settlements for car accidents involving uninsured or hit-and-run drivers that can’t be searched can still be a viable outcome. In such instances, your insurance company may compensate you for the collision. You can use several insurance plans, including MedPay, health insurance, and uninsured motorist coverage, to cover your damage expenses.

How To Maximize Car Accident Settlements from Insurance Companies

Let’s say you successfully prove the other driver’s negligence in an auto crash. Despite having the right to compensation, did you know that insurance providers can still reduce your car accident settlement?

For example, the insurance company quickly offered a settlement when you presented evidence. You might think this is good as it instantly covers your damage costs. However, remember that an initial car accident settlement offer hardly compensates for the total damages you sustain. If you incur permanent leg injuries in the crash, the insurance provider probably did not include the expenses for your future treatments and rehabilitation in the initial offer.

This is why it is crucial to understand and learn the simple ways to help you maximize your car accident settlement.

Understand Your Policy and Coverage

Understanding your policy and coverage is a simple yet effective way to maximize your settlement, mainly if you use your policy.

Learn your insurance’s precise terms, conditions, and coverage limitations, including liability, collision, comprehensive, and uninsured or underinsured motorist coverage. Understand any limitations or exclusions in your policy that might impact your claim.

Additionally, you need to be aware of the steps involved in submitting a claim, including the paperwork and the timelines involved. When filing a car accident claim against another driver, note that you can only do so within two years after the auto crash.

Knowing what your policy covers can help ensure that you are claiming all the benefits you are entitled to.

Ensure You Are Getting the Appropriate Treatment

Receiving proper medical treatment is not only crucial for your health but also for justifying your claim. Always do the following to protect your well-being and legal rights:

Seek medical attention immediately after the accident, even if you don’t feel seriously injured. Some injuries may not manifest symptoms right away.
Continue with all recommended follow-up appointments and treatments.
Obtain detailed medical records and expenses to back up your claim. This includes diagnosis, treatment plans, and any long-term care needs.

Remember that if you miss any of the treatments needed for your recovery and the insurance provider discovers this, they may question the cause or severity of your injuries. As a result, you may receive a reduced car accident settlement or, worse, have your case dismissed.

Avoid Common Loopholes

Insurance companies may not always prioritize your best interests. They often offer quick, inadequate settlements and have loopholes that can reduce your car accident compensation.

Network Coverage: Treatments outside an insurance company’s network may not be fully covered, resulting in higher out-of-pocket expenses and smaller settlements. To avoid unanticipated charges, always check that your treatments are in-network.
Facility Coverage: Like network coverage, insurance may only cover certain facilities. If you require specialist therapy that is not accessible at these places, you may incur more significant costs, lowering your payout. You must ensure your treatment center is in-network to prevent extra charges.
Location-Based Costs: Services in high-cost areas may be more expensive than those in lower-cost locations, even if they are the same. Always consider how location-based costs affect your coverage to maximize your payout.
Balance billing: Balance billing occurs when a provider charges you the difference between their fee and the insurance coverage. This is especially true when using out-of-network services, which can result in unanticipated charges that diminish your settlement. Be aware of potential balance bills.
Symptomatic vs. Disease Therapies: Certain insurance plans only cover symptomatic treatments and not more comprehensive disease-targeted therapies. This can lead to higher out-of-pocket expenses, decreasing your settlement’s efficacy.
Preventative vs. Diagnostic Services: Insurance may cover preventative services rather than diagnostic tests. For example, your initial check-up may be covered, but they may refuse to pay for the costs if you need further tests.
Non-Insurance Plans: Limited coverage or discount plans provide less coverage than traditional insurance. These policies may leave you with hefty out-of-pocket payments following an accident.

Understanding these factors and proactively checking your coverage can help maximize your car accident settlement, especially if you use your insurance policy.

Hire a Car Accident Lawyer

In reality, you can file a claim independently in minor accidents. However, having a car accident lawyer can significantly increase your chances of obtaining a maximized compensation.

For example, a distracted driver hit you. Unfortunately, you apologized at the scene, causing the insurance provider to blame you. In such a case, you might lose your case even if the other party’s negligence is apparent.

Another scenario is thinking a minor crash doesn’t require a lawyer. If you accept an initial settlement from the other driver’s insurance and later discover late-appearing injuries, you can’t reopen the claim once the settlement is finalized.

Whether the collision is minor or severe, hiring a skilled California auto accident attorney is essential for effectively handling car accident claims and maximizing payouts.

What Damages Can I Claim for a Car Accident?

Accident settlements for car accidents depend on several factors, including the severity of injuries and their impact on the victim’s life. Both tangible and intangible losses are considered when determining the settlement amount.

Economic damages are quantifiable financial losses supported by receipts and evidence, including:

Medical expenses
Property damage
Lost wages
Future income loss
Out-of-pocket costs

Non-economic damages include intangible losses resulting from the collision, such as:

Pain and suffering
Emotional distress
Loss of companionship
Diminished quality of life
Post-Traumatic Stress Disorder (PTSD)

Additionally, punitive damages may be awarded by the court in cases of extreme recklessness, intentional misconduct, or malice by the liable party.

While economic damages are documented with tangible evidence, assessing non-monetary losses requires the expertise of a California auto accident attorney. They can evaluate these intangible losses, maximize compensation, and determine eligibility for punitive damages.

Do I Need the Help of a California Auto Accident Attorney to Claim for Damages?

While it is true that you can file a claim independently, what happens if your injuries hinder you from obtaining evidence at the scene? How will you prove your case?

A California car accident attorney can strengthen your claim by gathering crucial evidence to prove the other party’s negligence. They perform several vital tasks to support your case, including:

Analyze the details of your situation to develop an effective legal strategy.
Collect essential evidence such as medical records, accident reports, witness statements, and relevant documentation.
Ensure all legal procedures and paperwork are handled correctly to avoid potential setbacks.
Advocate for a settlement that fairly compensates you for injuries and damages.
Safeguard your legal rights throughout the process, defending against insurance company tactics to reduce payouts.

The Law Offices of Larry H. Parker features a team of highly skilled California auto accident attorneys. If you’ve been injured in a car accident, our expertise and successful track record in traffic crash claims demonstrate our commitment to advocating for our clients’ rights.

To explore the best legal options for your case, schedule a free consultation with us at 800-333-0000.

What Our Clients Say About Us

While many personal injury attorneys can manage your case, our dedication to diligently advocating on your behalf sets us apart. We go above and beyond to ensure our personal injury lawyers are thoroughly prepared to build a strong claim, as evidenced by our satisfied clients.

“I had my first bad wreck in March 2015, and I literally found these guys through Yelp. I can’t complain about my experience with this firm, as they were very responsive to any questions or concerns I had. At one point, I even considered dropping the lawyer so that I could get a higher settlement, and the lawyer was even willing to go that route if I really wanted to and was very encouraging.

Pat, Oscar, and Becky were extremely helpful throughout the process. It’s the end of September, and I just got the release for my settlement. In less than three months, they got my claim pretty much worked out, so I’m a very happy client.

I recommend these guys to anyone looking for a good car accident lawyer.” Brian P.

Frequently Asked Questions

Accidents may be upsetting and complicated, leaving everyone involved with questions about their rights, obligations, and legal alternatives. Understanding the aftermath of an accident is critical for safeguarding your rights and getting proper compensation, regardless of whether you are the driver, passenger, or pedestrian.

If you have further questions, we answered some of the most often-asked concerns about road accidents.

Work Cited

“Auto Insurance Requirements – California DMV.” California DMV. Accessed 13 June 2024.