A car accident is a terrible experience for many individuals. You've been hurt, and now you have a lot of questions, like how you'll pay for medical care and what kind of compensation you can expect. Anger and resentment at the circumstances and those who caused them are possible. After a vehicle accident, many victims want to know if they are able to sue those at fault and, if so, for how much.
In some cases, the insurance company may unexpectedly offer quick compensation to vehicle accident victims. The insurance adjuster may say that it is because he or she wants to resolve the claim as quickly as possible to make sure that you will receive compensation.
Some victims of car accidents, unfortunately, take the offer and consider themselves lucky to have received anything at all. The issue arises when the compensation money has been depleted, leaving them with unmanageable medical expenses and other consequences.
Because of how cheap they are, these settlements always seem to run out rapidly. Some of the primary factors contributing to the low initial settlement offers are discussed below. We also detail the risks of accepting a poor settlement offer and the importance of discussing your case with a skilled PA car accident lawyer.
Reasons for Low Initial Settlement Offers
Insurance companies are businesses that require a profit to continue operations. They collect premium payments and invest them for financial gain. By paying out as little as possible, they retain the difference and generate annual profits in the billions of dollars.
As part of their strategy, they pay as little as possible for claims in order to keep their funds invested for as long as possible, thus optimizing their profits.
Frequently, Car Accident Victims Accept Lowball Settlements
Sadly, some victims accept these poor offers. Insurance companies are aware of this possibility, so why not try? If the injured party accepts the minimal offer, the insurance company's profits increase further. If no one ever accepted these offers, the insurance company would have no incentive to make them.
The majority of victims are unaware of the potential value of their claims. They may underestimate the value of their claims, assume their injuries are not that severe, or be unaware that even a "policy limit" offer may not be accurate. Insurers are also aware that victims may be frantic for compensation, so they expect you to accept whatever they offer.
Insurers are aware that some victims may feel it is too much trouble to negotiate or employ a Pennsylvania car accident attorney to assist them.
Insurers Do Not Believe You Will Hire a Car Accident Attorney
Many car accident victims choose not to hire an attorney. Insurance companies are aware of this, and they frequently presume that victims will not retain counsel. A victim is more likely to accept a lowball settlement offer if they do not employ an attorney. Some victims may not even make a counteroffer following the insurance company's initial offer.
Insurance companies do not want victims to hire attorneys, especially those who frequently litigate. When a car accident claim is litigated, a jury may award significantly more than the insurance company would pay out after negotiating with an attorney outside of court.
Without an attorney, the insurance company is not compelled to make a better offer that more precisely reflects the value of your damages. Because no jury will hold the insurance company accountable, they face no fear or threat.
The Insurance Company Casts Doubts Upon Your Credibility and Case Strength
When the insurance company believes that the victim is partially at fault or has a weak case, they may be more likely to make a lowball offer. If the insurance company believes you have a weak case, they do not feel much pressure.
There are numerous reasons why the insurance company might question the validity of your claim, including the following:
- Your statements that imply you are at fault or that your injuries are not that severe
- Social media posts you have made that undermine your case
- You have neglected to reschedule missed doctor's appointments
- Your account of the accident differs from those of other participants and witnesses
- You have pre existing injuries
Insurers May Lack Complete Knowledge of the Accident
Sometimes even the victim is unaware of certain evidence, let alone the insurance company. The insurance company may still be conducting an investigation into the collision. Additional evidence may assist in validating the extent of your damages and persuading the insurance company to increase its offer.
Examples of possible missing evidence include the following:
- Camera footage
- Missing medical records
- Evidence of poor maintenance
- GPS data
- Errors on police report
- Witness statements
Your PA Car Accident Claim May Have Significant Value
When an accident causes extensive damage, the claim amount can be quite high. This would cost the insurance company a substantial amount of money. They have an incentive to attempt to settle for the lowest possible amount.
Even though the initial offer for these claims is significantly less than the victim's damages, insurance companies are concerned with their bottom line. If your claim is worth a few thousand dollars or less, the insurance company may be more willing to compromise on the total amount of your damages. When a claim is worth tens of thousands of dollars or more, however, insurance companies would rather attempt to lowball the victim and hope he or she accepts the offer.
It is Crucial That You Hire a Qualified PA Legal Team
To keep money in their own pockets, insurance companies are infamous for intimidating and underpaying injury victims. Working with an experienced Pennsylvania car accident lawyer who anticipates and navigates insurance company intimidation tactics relieves victims and their loved ones of a tremendous burden as they recover from an accident.
Legal professionals who specialize in personal injury settlements are familiar with the processes and motivations of insurance companies as well as the extent of victims' financial, physical, and mental hardships. Allowing a Pennsylvania personal injury attorney to represent you and your family increases your likelihood of receiving a fair settlement.
Brandon J. Broderick is Prepared to Help You With Your PA Car Accident Claim
Frequently, those injured in an auto accident are unaware of the compensation to which they are entitled. Working with a lawyer who has extensive experience in car accidents can have a substantial influence on the outcome of your case. In certain instances, multiple parties may be at fault. Nonetheless, determining liability and the value of your claim is a complicated process. Why risk receiving unjust compensation if you have no recourse?
When you employ a personal injury attorney from Brandon J. Broderick, you can rely on a team that puts your needs first and fights for your best interests. We only collect payment for our services if we are successful in resolving your case. If we lose, you owe us nothing. Contact us today for a free consultation; we are ready to help you.