Handling insurance negotiations is stressful. Someone already coping with significant injuries may find it difficult to remain calm and focused during insurance negotiations. They can easily make mistakes that put them at a disadvantage and reduce how much they ultimately receive.
For example, those negotiating a settlement with a single, lump-sum payment frequently overlook certain expenses when estimating how much a collision may cost them. Such mistakes may result in them settling for far less than they actually deserve.
What costs do people frequently forget to include when negotiating an insurance settlement?
Future medical expenses
Obviously, people rely on insurance or the personal resources of the driver who caused the crash to cover their current medical expenses. However, people sometimes forget that they may have continued medical care needs for years after a significant injury. They may require thousands of dollars in additional support over the years. Physical therapy, pain management and care related to how injuries affect aging are all important considerations when estimating the medical cost of a crash injury.
Diminished vehicle value
People dealing with a damaged vehicle understand that the other driver is probably responsible for their actual repair costs. What they may overlook is the impact the collision has on the vehicle’s resale value. With online vehicle reports available to most buyers, a prior collision can diminish resale value on the secondary market or trade-in value at a dealership. Depending on the make and model of the vehicle, that diminished value could potentially be thousands of dollars.
Reduced earning potential
Seeking compensation for lost wages is commonplace. Fewer people recognize the potential loss related to their diminished earning potential. Missing work can have a chilling effect on someone’s career advancement that lasts for years. Injuries that cause functional limitations can affect job performance. Disfiguring scars can also reduce someone’s long-term earning potential in many careers. People have to think about not just the income they didn’t earn while in the hospital but also how a crash might affect their career advancement for years to come.
When injuries are serious enough to put someone in the hospital, a thorough review of financial losses is often necessary. Otherwise, people might settle for far less than the long-term financial impacts of a car crash warrant. Having assistance while calculating the economic consequences of a collision can be beneficial for those worried about limiting crash-related losses.