Understanding Your Car Insurance Claim Settlement

stress of car accidents and insurance claims Unfortunately you were recently involved in an auto accident.  A week later you receive a settlement check from your insurance company and you are shocked and appalled at the settlement amount.  Your car is worth so much more than the estimate.  You wonder where on earth the insurance company get’s their numbers from.

For Damaged Vehicles, they consider the amount to repair or replace the damaged part of your auto.  So if the rear bumper is damaged, they pay the amount to replace the rear bumper.  They are allowed to use aftermarket parts but you can also request original manufacturer equipment.   If your vehicle has significant damage and the cost of repairs exceed the market value they may consider your vehicle a total loss.  In that instance, they pay the actual cash value of the vehicle with depreciation.  Most people are not satisfied with their total loss settlement.  Especially if you have owed the car for a long time and have taken good care of it then disappointment sets in.

For Injuries the settlement can be more complicated to tabulate.  Several factors are involved which includes:

  • Your Hospital Bills
  • Follow up doctor charges
  • Any physical therapy
  • Lost Wages
  • Your percentage at fault

Additional compensation can be negotiated for ongoing treatment, disfiguration or scaring and long term pain.  Consult your Personal Injury Attorney if your injuries are serious enough to have lifelong ramifications.  Remember, once you settle with Insurance Company you can’t go back and request more funds.  That is why serious injuries can take years to settle as most people wait until they have a full understanding of what the long term holds for them.

Please contact me for more information on claims handling.

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