How to Evaluate a Car Insurance Settlement Offer

offer, which outlines the adjuster’s findings and clarifies what you’ll receive as a payout.

The problem is that there’s a lot of complexity in this superficially simple document, so you can’t just blindly go into examining it without a bit of prep. To that end, here’s a quick overview of how you can adequately evaluate the offer and determine if it’s up to scratch or worth countering.

Grasping the Basics

The purpose of the letter is to distil the offer into its constituent parts and provide evidence as to why the adjuster has arrived at the final sum. As such, it typically covers calculations for the costs incurred as a result of the incident to which the claim relates. This usually factors in everything from the expenses associated with repairing a vehicle after a crash to any medical bills that arise from the injuries suffered.

It’s reasonable to be intimidated by this level of detail and complexity, which is why consulting a local expert can help. For instance, if your collision occurred in OK, an Oklahoma City car accident attorney can explain the language used, ensure all damages are accounted for, and identify any lowball tactics in the offer. Their insight is particularly valuable for understanding state-specific laws or insurance practices that could influence the outcome.

Recognizing Existing & Ongoing Medical Costs

One reason to question a car insurance settlement offer comes down to how it measures medical costs. Even if you have insurance with a reputable provider it’s important to be thorough here.

Crucially, you can’t only take the bills you’ve already paid or are in the process of paying into account. In addition to things like emergency room charges and prescription medications, you must account for ongoing costs that may be incurred indefinitely, such as therapy sessions and long-term care that your healthcare provider deems necessary as part of your recovery and continued good health.

On top of this, you need to request detailed documentation from your doctors to support these expenses, and keep track of all receipts, invoices, and appointment records to ensure nothing is overlooked. Even if you’re among the 80% of drivers with comprehensive cover, actually taking advantage of what your policy includes when you need to make a claim requires going the extra mile.

Fault Percentages Explained

Another potentially confusing concept in a car insurance settlement offer is the fault percentage. In short, it determines the proportion by which the payout you’re eligible for may be reduced by the insurer depending on the degree to which you’re deemed responsible for the accident.

In the case that you’re found to be 20% at fault, that’s the deduction you’ll see taken off your originally assessed total. The good news is that insurers must clearly outline how they’ve reached this decision, and you have the opportunity to argue against their findings, using evidence to back up any claims and picking out inaccuracies in the assertions made by the adjuster along the way.

Bear in mind that there are differences between how fault percentages are handled depending on the state you live in, so it’s always a good idea to get legal advice local to you if things aren’t cut and dry here.

Deciding When to Counter or Walk Away

A low initial settlement offer isn’t unusual. Carefully compare it to your calculated damages, including medical expenses, lost wages, vehicle costs, and non-economic harm. If the offer falls short, consider countering with documented evidence to support your demand.

Know when to walk away. If the insurer refuses to negotiate or significantly undervalues your claim, filing a lawsuit may be your next step. It’s worth restating that consulting legal professionals can guide your decision.

Final Thoughts

Evaluating a car insurance settlement offer requires careful review of damages, costs, and fault. Breaking down each component ensures you’re not shortchanged.

When in doubt, consult local legal experts to strengthen your position. A well-informed approach helps you make decisions confidently, whether to settle, counter, or explore other legal options.