Auto insurance companies collect premiums to provide coverage to their customers for losses in an accident. They expect premiums to be paid promptly, yet sometimes when accident victims need help after an accident, the insurance companies take their time about paying. Or they offer very small settlement amounts.
Accident victims are left to scratch their heads and wonder “how did they come up with that number?”
The answer is there is no set formula. Every company uses different methods, but one thing that is consistent is that they will initially offer as low a number as possible. They are in business to make money.
Insurance companies do not have one precise method for calculating settlement offers that is applied to every case. Each accident is unique, but one thing is consistent: Insurance companies have a financial incentive to pay less and maximize their profits. Insurance companies will often attempt to entice or pressure injured parties to accept an offer that does not fully cover the victim’s medical bills, lost wages, rehabilitation, and pain and suffering. Many companies use their own formula to determine their initial settlement offer and they don’t disclose how they arrive at a number. Once the company has arrived at an amount for personal injury, lost income caused by the injury is then added to the number, but it is often inadequate.
South Florida Accident Attorney
Victims of automobile, truck, and motorcycle accidents are cajoled into working with their insurance company without any outside advice, and this can be a very costly mistake. As experienced accident attorneys, we have learned that there is usually lots of room for negotiation with insurance companies, and we have been doing it for over 20 years.
Get the Insurance Settlement you Deserve
If you have been involved in an accident, you may be contacted almost immediately with an offer to settle. We urge people to take a moment and have the facts and their policy reviewed to make sure the offer is fair. Most of our cases work on a contingency basis, which means you don’t pay until the case is closed. Give us a call at 954-356-0006 and we can have a discussion about making sure you come out with the maximum amount of money to which you are entitled.