What Happens When Insurance Settlements Fall Short of Recovery Costs?

Anyone can become the victim of a personal injury accident, from a vehicle collision to a slip and fall to a product malfunction. It’s within your rights to receive compensation for any bodily damage or harm done to your property. However, even after receiving insurance settlements, some people still struggle afterward, especially if they lose the ability to work. 

Read on to understand why some of these burdens may take place and how professional legal help can guide you through the process and increase compensation.

What Can Cause Financial Burdens After Insurance Payout?

If you got the short end of the stick with your settlement payout, it may not account for future costs of ongoing care or medication, which can quickly eat up your funds. Some people may still have to catch up from lost wages resulting from weeks or months of recovery, and may be unable to return to work full-time, if at all.

They may also have unseen out-of-pocket expenses, which may include somebody seeking therapy to help with trauma from the accident. Medical debt may increase due to unpaid balances after your healthcare provider places a medical lien on your payout to cover previous treatments exceeding health insurance limitations. If you’re on Medicare or Medicaid, they require mandatory repayment for injury-related expenses they’ve covered. 

You may require more than one surgery, physical therapy, and medication years after that settlement check clears. If someone has a permanent disability, it may also reduce their earning capacity, which can help lost wages escalate. With the rising cost of inflation and daily living, even the most responsible person can fall behind on rent, mortgages, car payments, etc.

How Can an Attorney Help?

One of the best things you can do after an accident is contact a local personal injury law firm immediately. Legal representation means you have someone speaking on your behalf who understands how cases like yours usually turn out. 

You’re much more likely to get a better settlement with your lawyer communicating with the insurance companies for you. 

Sadly, insurers are often known for trying to lowball claimants, but a trained attorney who is used to handling these cases can get a higher settlement, a faster response, and understand how to calculate future expenses that a quick payout you’re getting on your own won’t account for. Your attorney may consider the ongoing cost of living and care resulting from the situation and would include that in a settlement request.

Can I Get More Money After a Settlement?

That depends on whether you signed anything yet. If you verbally agreed to a settlement, but didn’t actually sign the final release form, you still have enough room for your attorney to negotiate a payout increase. 

Ensure your lawyer has as much information as possible to predict future medical expenses and wage concerns. However, if you’ve already signed the release, that means the settlement case is closed, even with a lawyer.

If medical bills are an issue, you may be able to negotiate with your medical provider or hospital for a discount based on low income, or for paying an amount in full. They may also set you up on a payment plan.

Depending on the type of accident you had, for example, a car accident, your attorney may be able to file another claim with your auto insurer. 

The best way to ensure that you get the sentiment you deserve is  to proactively seek legal advice the minute something happens. That way, you can avoid becoming short-changed and being unable to afford medical expenses and the temporary or permanent life changes brought about by the accident.