Accidents are unpredictable. You may be cautious, but it is possible a reckless stranger appears and disrupts your peaceful life with injuries. Automatically, the responsibility lies on the stranger. However, demanding a compensation can get complicated. Here is what you need to know about personal injury insurance claim settlements.
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What is Personal Injury Insurance?
In insurance term, personal injury case is related to personal injury protection (PIP). It deals with a healthcare compensation for the policy holder, the third-party and anyone that is involved. There are several scenarios that can be included as a personal injury case, such as wrongful deaths, assault, defamation, medical malpractice and so on.
However, the most common one is automobile accidents. Apparently, it has been recorded that there are numerous of them happened in a year, and therefore many may demand for compensation. For example, your car is driving at a normal high speed. Suddenly, a car unintentionally hits the back of your car due to sleepiness.
In consequence, the car’s boot get damaged, and the driver demands a compensation. The case may happen vice versa; regardless, it will be less heavier if there is an insurance that shields you. But how does the claim work exactly? The process is rarely exposed, but there are personal injury insurance claim settlements that you need to be aware of.
How Do the Settlements Work?
Settlements are quite challenging to reach if both parties involve are still shocked emotionally. It is the reason why a middleperson’s presence is necessary, such as the court or an attorney. The settlements then can be justified more objectively because they will be according to the law, and they work quite simply.
The plaintiff will usually file a personal injury lawsuit at the court and demand a compensation, whereas the defendant, the one is accused for accidents, may offer the amount that is willing to be fulfilled. Although the process can be tricky, the verdict will be agreed by both parties and seen by the judge in charge.
However, the amount of compensation can end quite differently from what has been expected. It can be lesser or higher. It is why an attorney’s attendance on your side might be a wise action, especially if you are unfamiliar with such case.
How Much is The Compensation Usually Given?
The amount of personal injury insurance claim settlements depends on the severity of the incident. A car accident that causes broken arm is not going to be different to the one that involves death. However, a study has recoded some information the average of compensation as of 2005.
For example, the data shows that approximately half of the plaintiffs have received up to $24,000, whereas $16,000 gets awarded in automobile accidents recorded. Another case, such as medical malpractice, has compensated a larger amount, which is $679,000; and flawed medicine case gives for around $748,000.
How To Settle Claim with Your Insurance Company?
Demanding on compensation to a at-fault person is different to settling your claim to your insurance company. Generally, the settlements do not require any filing a personal injury lawsuit. However, there are several recommended steps if you are involved in an automobile accident to maximise your insurance recovery.
1. Gather Information to Support Your Claim
Your insurance must question the details of your automobile accident. Thus, you are required to share any information, such as time of occurrence, location of accident, exact date of the happening, people that are involved and the injuries existed. Additionally, you can submit a copy of the accident report from police.
Furthermore, you may also ask several details from the third-party driver involved. Afterwards, your insurance company will definitely hear and assist you to proceed the personal injury claim.
2. File The Claim
Personal injury insurance claim settlements usually have limited time. Usually, some companies restrict claim settlements under 24 hours. It is why, as soon as the accident happens, it is recommended to contact the insurance company of the at-fault’s driver. If you are hindered to visit, online submission is sometimes available.
Whichever the ways may be of filing your claim, remember to put information as detailed as possible to make the process smoother. After submission and waiting for a response, the adjuster is going to send you a letter called Reservation of Rights or ROR. By accepting this, it means your case is being investigated.
3. Outline Damages and Your Demand
After receiving ROR, there is an opportunity to send a demand letter. Its content must include a lot of variables happened during the accident, such as the chronology and evidences. Through those, you may put your argument so that your compensation demand will be accepted.
Additionally, you may include the calculation of your medical cost and non-medical one. Non-medical one is to console you emotionally. Make sure all is being counted well so that the compensation will be as reasonable as possible. Furthermore, it is recommended to submit the demand letter after your recovery.
By then, you can focus on the argument and calculation for a greater settlement.
4. Review First Settlement Offer
Personal injury insurance claim settlements can be quite challenging after the submission of your demand letter. The reason is because insurance companies may be included as profit-driven institutions. It is possible that they intentionally extend the period of waiting regardless their finished investigation.
If you are patient enough, the first offer will then be extended. However, the offered compensation can be lower, especially if the insurance company involved is positive that you will lose in court. When this happens, you must review the offer very carefully before signing a waiver. If not, you will be unable to demand as you might deserve.
Ready to File Your Claim?
Personal injury insurance claim settlements’ process is both challenging and smooth. If you are familiar in dealing with insurance companies and automobile accidents, you may know what to do. However, it is possible to receive a compensation with a lower amount that you deserve. Hence why, do not hesitate to call for an attorney to assist.