After a car accident, one of the things you have to do is notify your insurance provider. The other driver will also notify his or her insurer. You may think that what will naturally follow is each company compensating you for the accident, especially when it is not your fault.
However much this makes sense, it is not a definite reality. Insurance companies do not want to give up profits and will do whatever they can, sometimes even illegally, to keep their money. They know outright denials of your claim can lead to an immediate lawsuit, so they may just offer you a settlement instead. You may think it is a fair amount, but you should not accept it for the following reasons:
The amount is not high enough
Insurers are professionals at appearing generous while really being greedy. They will offer what seems like a lot of money to you but is not the full amount you are eligible to receive under the circumstances. Agreeing to the settlement ends your opportunity to seek more compensation. Talk to a personal injury attorney for an estimate of what your case could be worth.
It is too soon to value your case
The longer the claim takes, the more insurance companies usually have to pay due to more information coming to light. The full extent of your injuries and their lasting consequences on your health and lifestyle may not be apparent yet. Additional evidence on the details of the accident may come forth with further investigation. There is no magic formula an insurer can use to determine what your case is worth.
Insurance companies are businesses
As mentioned before, insurance companies care about how much money they make. That is not to say that all providers are evil, but that they are businesses, not charities, and operate as such. They are going to do what is in their best interests, not yours, no matter how loyal and responsible of a customer you have been.