After being involved in an accident of any kind, one of the top ways to recover compensation is by filing a claim with the insurance company. Depending on where you live, this may be a claim with your personal insurer or the liable party’s insurance provider. In any case, many victims are shocked to receive a settlement offer from the insurance company.
However, do not be fooled. If your settlement offer came in quickly, it may not be enough to cover your losses in full. Before you accept an insurance company’s first settlement offer, it may be in your best interests to speak with your personal injury attorney and start considering your lawsuit loan options for financial relief while your lawyer negotiates with the insurance adjuster handling your claim.
You Should Never Accept an Insurance Company’s First Offer
It is usually never a good idea to accept a first settlement offer from the insurance company. Unless you have already reviewed this offer with your attorney, it is important that you do not accept the insurance company’s initial offer. It is more common than you might think for insurance companies to take advantage of claimants.
Many insurance adjusters are looking for every opportunity they can to reduce your settlement. If you receive a settlement offer from the insurance company quickly, it is safe to assume they recognized the true value of your plane and are hoping to convince you to settle for less. If the insurance company can tempt you with quick cash, it can reduce their financial payouts.
Since insurance agencies are profit-driven and rely on bringing in more through insurance premiums than they pay out in claims, it should come as no surprise that the insurance company is looking for opportunities to reduce what they are required to pay out in your claim.
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Understanding the True Value of Your Damages
Main injury victims negotiating with insurance companies believe the insurance adjuster is on their side. However, now you know that this is not the case. Insurance companies prioritize their financial interests above all else.
Insurance company it is crucial that you understand the true value of your claim. When you file a personal injury lawsuit, there are many types of damages that you may be entitled to. These are commonly referred to as compensatory damages, which can be further categorized as economic or non-economic.
Recoverable Economic Damages
Economic damages include every financial loss or out-of-pocket expense. Some examples of these could include:
- Vehicle repair expenses
- Medical bills
- Costs of medical devices
- Your ambulance bills
- Lost income
- Loss of benefits from your employer
- Loss of household services
- Personal property damages
Recoverable Non-Economic Damages
Non-economic damages describe how your entire life has been affected physically, emotionally, psychologically, and everything in between. Some examples of potentially recoverable non-economic damages include:
- Physical pain
- Chronic suffering
- Permanent disability
- Embarrassing skin scars
- Psychological distress
- Shame and indignity
Insurance companies rarely pay out compensation for non-economic damages. However, if they are hoping to make you a quick offer, it is important to understand how much compensation you are entitled to versus the insurance company’s legal obligations. The types and amounts of coverage purchased by the policyholder will determine how much the insurance company is obligated to compensate you.
Factors that Could Impact Your Settlement
Multiple factors could have an impact on your settlement with the insurance company. Not only could they impact the amount of compensation you recover, but they could also influence how long it might take for your settlement to come in.
If you are partially responsible for causing the accident you were involved in, chances are your settlement will be reduced. Depending on how much fault you share, you could even be prohibited from compensation. In modified comparative negligence states, if you are partially at fault for the accident, as long as your portion of fault does not exceed 49% or 51% (depending on the state you live in), you can still recover compensation at a reduced rate.
Your settlement may be reduced to account for your portion of culpability. However, if you live in a state that follows pure contributory negligence laws, you will be prohibited from filing a lawsuit in civil court if you are partially at fault.
The amount of coverage the policyholder has will also have an influence on how much you can be awarded through your insurance claim. Insurance companies are not legally required to compensate injury victims for the total value of their damages.
However, they are obligated to cover a victim’s losses up to the maximum limits of their policyholder’s policy. For this reason, it should come as no surprise if you attempt to file a claim with the liable party’s insurance company and discover they do not have enough coverage to meet your needs.
What to Do While You Wait for Your Settlement Funds to Come In
While you wait for your attorney to continue negotiating with the insurance company, it may be difficult for you to continue to make ends meet. This is particularly true if you are currently out of work due to disabling injuries. Fortunately, when you contact Silver Dollar Financial, we can help you obtain a portion of your anticipated settlement ahead of time.
You can think of pre-settlement legal funding as a type of cash advance. When you are working with an attorney and have an anticipated settlement through a civil lawsuit or insurance claim, you may be eligible for legal funding. Taking out a lawsuit loan is not the same as taking out a personal loan where your income, credit score, and ability to pay back the loan matter.
When you take out a lawsuit loan, your creditworthiness is irrelevant as our loans are non-recourse and can only be repaired with your settlement time. This way, you do not have to continue struggling financially while your attorney demands the insurance company handle your claim fairly.
Apply Now for Pre-Settlement Funding
Contact Our Loan Specialists for Help Today
While your personal injury lawyer negotiates with the insurance company, you may continue to struggle to cover the bills and get out of debt. Fortunately, with help from a lawsuit loan provider, you can get the financial support you need when you need it most.
Connect with our loan specialists at Silver Dollar Financial to find out how much we could authorize in pre-settlement legal funding. Complete our online contact form, call our office, or apply now to get money in your bank account in a matter of hours.