If you were unfortunate enough to find yourself in a car accident, you might be perplexed as to why the settlement amount from your insurance company is far from what you were expecting; not even enough for you to replace your damaged vehicle. Insurance companies determine car accident compensation based on a number of factors, including the nature of property damage, whether personal injury is involved and policy limits in place.
If you are only claiming property damage, then your car accident compensation will cover costs pertaining to repairs or replacing parts. In case these costs exceed the value of the vehicle itself, then your car will be deemed a “total loss” and you will be paid for the loss of your car. However, they factor in depreciation and the amount you receive is usually insufficient to purchase a replacement car. If you were also injured in the accident and are filing a personal injury claim, the amount your insurance company awards you will be determined separately. It usually covers your medical bills and income loss, and is based on your medical reports, which also determine how much you will be awarded for “pain and suffering”.
If your doctor informs you that you may require future treatment, it is important to obtain an estimate, so that you can seek compensation accordingly as part of your card accident compensation. As you only get one shot at a settlement in the sense that once you agree to a settlement from your insurance company, you cannot go back to them in the future and claim further compensation. Once you submit your claim and agree to the settlement, you waive the right to claiming compensation for the same accident in the future. Therefore, it is important to present to them current as well as potential future costs, so that you can receive an all-inclusive settlement.
At times insurance companies refuse to pay the amount you claim, even if it is well within your policy limit, because they believe your case does not warrant a larger amount. If this is the case, then a lawyer can file a lawsuit for you against the other party for negligence. It is essential that you are aware of when the time allowed by a statute of limitations expires, as your lawsuit needs to be filed before then or you will end up forfeiting your rights.