Car accidents can be life-changing in a matter of seconds. Besides the physical and emotional impact, victims also face a significant financial burden arising from lost income, medical expenses, vehicle repairs, life adjustments, and related out-of-pocket costs. With mounting bills and a disrupted livelihood, many car accident victims resort to filing a car accident claim with insurers for compensation.
While filing a compensatory claim is a vital step in financial recovery, understanding how insurance companies determine their payouts is equally essential. The truth is, they aim to pay as little as possible, thus maximizing profits.
In this guide, our Montgomery County car accident lawyers break down how insurance companies value claims, giving you a snippet of what to expect in the process. You can also arrange a complimentary case evaluation to discuss your case in detail.
How Insurers Calculate Car Accident Claims
The first and most crucial factor insurance adjusters consider in claim valuation is liability. In Texas, the comparative negligence rule dictates that anyone whose fault exceeds 50% is not eligible for damages. If you are 50% or less responsible for the crash, compensation is reduced by your degree of liability.
Insurers also assess the types and extent of damages suffered by claimants. They are either economic or non-economic. While they may be quick to downplay intangible losses, an experienced attorney can retain experts to support your case for maximum compensation. The more damage you suffer, the higher your settlement should be.
Insurance Coverage Limitations
Besides liability and damages, another vital consideration in valuing car accident claims in Montgomery County is insurance coverage. No matter how extensive your losses are, you are only eligible to recover up to the policy limits of applicable insurance policies.
If your damages exceed available coverage, you may have to pursue alternative options such as filing a lawsuit or seeking coverage from your insurer through the Underinsured/Uninsured Motorist Coverage or Personal Injury Protection.
How Insurers Minimize Car Accident Claim Payouts
Insurance companies are businesses, and as such, their primary focus is on maximizing profits. They employ various bad-faith insurance tactics to achieve this.
Pushing Lowball Settlement Offers
One of the most common tactics is offering a settlement quickly before you realize the full impact of the crash. They may also push you to give recorded statements or sign documents, hoping that you make mistakes or sentiments that could be used against you.
Delaying Settlements
Another tactic that insurance companies use to minimize car accident claims is delaying settlement, so you give up and accept their terms. They hinge on the financial pressure that comes with medical treatment, rehabilitation, vehicle repair, lost income, and loss of income-earning ability.
Putting Undue Liability on You
Liability may also be shifted by exploiting the comparative negligence rule, which bars personal injury victims from pursuing compensation when their fault is greater than 50%.
Misrepresenting Terms
In some cases, insurers also misrepresent insurance policy terms to their advantage. For example, they may suggest that some damages aren’t covered, yet they are.
Their ultimate goal is to frustrate and pressure you into accepting lowball offers that don’t reflect the actual value of your car accident claim. That’s why having a seasoned personal injury lawyer is necessary to avoid these and other traps insurers set to minimize and deny claims.
Should I Accept the Insurer’s Settlement Offer?
The decision to settle a car accident case with insurance companies should be made after careful consideration and review of the terms. Unfortunately, you cannot do this alone, especially while recovering from injuries or getting your life back on track.
Insurers will try to settle quickly before you realize the full extent of damages resulting from the crash. For this reason, these early offers are rarely in your best interests.
Consult a Car Accident Attorney First
That’s why hiring an auto wreck attorney is important. They will calculate the actual value of your claim, assess applicable policies, and evaluate the offers made to you. If they seem rushed, vague, or too low, your legal team will aggressively negotiate a better deal and pursue legal action in court if a fair settlement cannot be reached.
Therefore, it’s recommended not to accept any offers until you speak with a qualified car accident lawyer in Montgomery County.
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Talk to a Montgomery County Car Accident Lawyer Before You Settle
If you have been injured in a car accident, don’t accept the insurer’s settlement offer without consulting an attorney. Insurance adjusters are trained to maximize profits at your expense, so their offers are rarely the true worth of your case. A skilled car accident lawyer can fight for the full compensation you deserve.
Contact us today to discuss your case with our team.
Call or text (832) 346-9585 or complete a Free Case Evaluation form
