Motor vehicle collisions tend to inspire significant financial stress. People who may not have caused a crash still have to worry about the long-term consequences of the wreck. They may have multiple major expenses to cover, with more bills piling up every day.
Sometimes, people are so desperate for compensation after a crash that they accept the first settlement offer that does not provide them with adequate financial support. A settlement offer typically represents the only compensation possible from the insurance company after a crash.
It is therefore of the utmost importance that those evaluating a settlement offer ensure that the amount provided is adequate given the extent of the losses they experienced. The three potential future expenses below are important to consider when evaluating whether a settlement offer is reasonable.
Diminished vehicle resale value
Property damage expenses can contribute substantially to the overall financial impact that crash has on the people involved. It can cost tens of thousands of dollars to replace a vehicle. People can burn through most of the available property damage coverage to simply repair a damaged vehicle. People also have to consider the possibility of the resale value of the vehicle declining because of the crash history. They need to be able to recoup the difference between what they could have sold or traded the vehicle in for previously and the amount it may currently command on the open market.
Future medical expenses
Many times, crash injuries cause long-term challenges for the people hurt. They may have not just a stack of medical bills but a lifetime of extra support and care needs to address. People need to discuss the care they may require in the future with their doctor to determine how much that treatment may cost and whether a settlement is enough to cover those expenses. Particularly when people have catastrophic injuries or the injured party is a child, future care costs can be a crucial consideration.
Lost earning potential
People involved in crashes may have lost wages while they were in the hospital after the wreck. They can easily determine what wages they lost by being unable to work. They may also need help calculating the impact of their injuries on their earning potential. Missing weeks of work and coping with debilitating conditions can significantly reduce an individual’s long-term earning potential. They may have a harder time advancing their career after an injury, especially if they have visible scars or long-term functional limitations.
A car crash settlement should cover current and future crash costs, as an individual cannot go back and ask for more after absolving an insurance company of liability. Understanding expenses that may continue to accumulate can help people evaluate any settlement that an insurance professional offers.
