Many people expect or hope for a settlement from an insurance company after a crash. When another driver causes a collision, the people affected by the wreck hope to receive compensation for vehicle damage, medical expenses and any wages they may have lost because of the wreck.
Not every crash scenario automatically leads to an insurance settlement. The person in need of compensation may have an uphill battle after the crash. They might even need to take their issues to civil court. The process of pursuing compensation in such cases can be far longer than people anticipate initially.
Why do insurance companies sometimes refuse to settle claims after a crash?
Uncertainty about fault or losses
It is quite common for the party to blame for a crash to deny the mistakes that they made. They want to avoid personal financial responsibility by claiming they aren’t to blame for the collision. An insurance company is unlikely to settle in a scenario where there are still questions about whether the policyholder they insured is to blame for the wreck.
In scenarios where an insurance company questions the costs reported to repair a vehicle, the injuries vehicle occupants claim to have or the validity of lost wage claims, insurance companies may avoid settling until there are more details available.
As a negotiation tactic
Some insurance companies hold off on settling or otherwise working with a claimant because they want to minimize what the company pays. While they may not be able to justify denying the claim entirely, they may hope to limit what they pay by manipulating the process. Refusing to settle and dragging out the claims process can be a tactic intended to frustrate someone in need of compensation. The hope is that they may accept less than they deserve or abandon the claim altogether.
An uninsured motorist
Not every driver follows state law and carries the insurance that they should. Uninsured drivers can cause crashes and might provide outdated policy information to the other party. When someone tries to file a claim against an inactive insurance policy, the insurance provider obviously doesn’t offer a settlement.
It may be necessary to secure support when negotiating an insurance claim or considering a personal injury lawsuit due to a lack of insurance compensation. Realizing that settlements aren’t always easy to obtain may inspire people to seek guidance when pursuing economic justice after a car wreck.
