Legal Law Order General Types of Insurance Offers and How to Handle Them

Types of Insurance Offers and How to Handle Them

After being involved in an accident caused by another driver’s negligence, their insurance company might call you with an offer. The offer will factor in the losses you incurred from the accident, including medical expenses, damages, and lost wages. Before you accept the offer, it is advisable to seek help from a lawyer for an auto insurance claim. The professional will help you evaluate the amount of compensation you deserve and take you through the process of filing a claim. In the process, you may be given three types of offers by the insurance company. Your lawyer will help you deal with them the right way. Here are the types of insurance offers you might get.

  1. A Low Offer than What You Deserve

In most cases, the insurance company comes with a first offer that is usually lower than what you expected. This offer is not enough to cover your losses and damages. In fact, the insurance adjuster will try to talk you into accepting the low offer as your chance of getting compensation. Never take this offer in any way. It is vital to get the total cost of your injuries, car repair costs, and other losses to know how much your payment is worth. Work with your lawyer to calculate your total loss to see the offer you should expect from the insurer. Get all the information you can get from your doctor, mechanic, and employer about your situation, how much it has cost you, and how much it will cost in the future. This is vital, especially if you have suffered permanent injuries.

  1. The Total Loss Offer

If your car has been damaged, you will file a claim against the other driver’s insurance company. That means the company will be liable for the damages. In some instances, the insurance company may declare your car as totaled. Being totaled means the cost of repairing the damages will be more than the current market value of your vehicle. In some states, the loss will only need to be slightly higher than the vehicle’s value. A total loss might also apply if the car was stolen. The company will, therefore, pay you for the car’s total value minus the depreciation amount. If you disagree with the calculations, you will need to find proof that your vehicle is worthier than what the insurance company claims.

  1. The Betterment Clause Offer

If the repairs improve the value of your vehicle, you might be required to pay a fee. This policy is known as the betterment clause. For example, if the mechanic uses high-quality and new parts to repair the vehicle such that its value increases, you will need to pay the betterment fee. If the insurance company provides an offer that includes deducting the betterment fee, you can dispute and prove that the repairs will not increase the car’s value. You can confirm this by getting a statement from the mechanic or another auto expert.

Final Thoughts

If you disagree with these offers, you must review the negotiation until you agree. Your lawyer will help you negotiate and find the proof you need to dispute the proposition.

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