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The risk of settling your case for too little

On Behalf of | Mar 8, 2023 | Personal Injury

A lot of people feel comforted by the fact that they have insurance. After all, the companies that provide these policies are there to protect you, right? Wrong. These insurance providers are out to make money. As a result, their desire to increase profits can directly contradict your best interests, especially when your claim is significant, since the easiest way for insurance companies to make money is to pay as little as possible during the claims process or outright deny claims altogether.

Therefore, even though you might be tempted to resolve your insurance claim once your insurance provider offers you a claim settlement, you shouldn’t act too quickly. Instead, you need to take some time to fully analyze your situation to determine if you can recover more. After all, there are significant risks to being short-changed during the claims process.

The risks of an inadequate settlement

Settling any sort of personal injury or insurance claim can jeopardize your future. Here’s what could happen if you end up with an unfairly low settlement:

  • You’re left on the hook for medical expenses: Sure, a settlement can help cover your medical care for some time, but if your settlement doesn’t take into account your ongoing need for care and treatment, then you’re going to be left paying those costs out of your own pocket. In other words, your desire to quickly wrap up the legal process after your accident could leave you on the hook for tens of thousands of dollars.
  • You might not be able to make ends meet: Remember that any kind of settlement that you enter into, whether with your insurance company or the driver who caused your accident, should also address your lost wages and your anticipated lost income and lost earnings capacity. A settlement that short-changes you might make it hard for you to eventually cover your day-to-day expenses, which includes paying your housing expenses, utilities, and grocery bills.
  • You might be riddled with uncertainty: Without financial stability, you could find yourself stressed out about your financial uncertainty. This can impact nearly every aspect of your life, even causing strain in your existing relationships, especially when you don’t have the money that you need to cover your basic necessities.

What can you do to protect yourself?

Even though dealing with the insurance company can be stressful and overwhelming, you don’t have to let them take advantage of you during the settlement process. Instead, you can prepare yourself for the process by calculating your losses and being prepared to make counter offers until you reach an amount that’s acceptable. If that doesn’t work, then you may want to consider additional legal action. Before you do so, though, make sure you have an understanding of the legal process and how to competently navigate it in a way that’s advantageous to you.

Do you need help getting a handle on your case?

There are a lot of moving parts to your case as you try to find a path toward recovering the compensation that you need. And navigating the process can be complicated and confusing. With the stakes so high, you’ll want to make sure that you have the assistance that you need on your side.

You can find this help from a legal professional who is skilled in handling personal injury cases. With one of these advocates on your side, you could better position yourself to achieve the outcome that you need to protect your short-term and long-term interests.