One may want to file an insurance claim after getting injured in a car accident. However, getting this compensation might not be as easy as it should be.
It is common knowledge that the first offer made by the insurance company is always the lowest. However, only a few know the reasons behind this behavior. Once you understand the reasons, you will be able to dodge their tactics and get your money with the help of a Lehi, UT car accident lawyer.
Reasons why insurance companies offer low settlements
- Insurance companies only care about their profit.
Make sure you get one thing straight when dealing with insurance companies: they do not work in your favor. Believe it or not, insurance companies do not want the best for you or have your best interests at heart. As long as they pay you less money than you deserve, they get to keep the rest in their pockets.
- Insurance companies rely on computer software.
Many insurance companies use a computer-generated method of calculating your damages. This software may not always generate the amount that you deserve because they are designed to work in favor of the company’s interests, not yours. Moreover, the software uses data from similar claims to calculate your compensation, which may not always be accurate as every car accident case differs from another.
- People often accept the first offer made by them.
One significant reason why insurance companies offer low settlements is that people often take them. Not everyone can fight the temptation of accepting the money as they are often in desperate situations. If your injuries affect your life, you may want to accept the first offer and end the hassle. However, this may cost you in the long run as this amount is often not enough to cover all your damages.
- Insurance companies do not expect you to hire a lawyer.
One popular tactic of the insurance companies is to use your lack of legal knowledge against you. When you do not have an attorney by your side, you are bound to make mistakes and underestimate the value of your damages. However, if you have an attorney, they will probably try to avoid going to court and thus, offer a larger settlement.
- Insurance companies snatch your right to sue them.
Suppose they offer you a settlement, and you accept it. Later, you realize that the amount is not enough to cover your damages and demand for more. Now, even if they refuse to pay you, you will be unable to sue them as you have already signed the first offer agreement.