David A. Goldstein Co., L.P.A. | Attorneys At Law

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Why insurance companies prefer to settle after semi-truck wrecks

On Behalf of | May 22, 2024 | Personal Injury

Someone involved in a semi-truck collision likely faces a variety of serious challenges immediately after the crash. Obviously, they have to address their immediate safety and check anyone in their vehicle for signs of injury. Yet, they also have to navigate the legal and financial aftermath of their circumstances. Someone anticipating the worst-case scenario may imagine a situation in which an insurance company denies or delays their claim. While they know that the semi-truck operator was at fault for the wreck, they may have a difficult time asserting themselves.

When an insurance company responds with a settlement offer, those recovering from a semi-truck collision often eagerly accept. What they may not realize is that most insurance companies settle quickly because doing so is beneficial for them and possibly less beneficial for the person filing the claim. Why do the companies that provide commercial vehicle insurance often try to get people to settle right after a crash?

To minimize company liability

The most common reason to push for a settlement is to limit the financial losses that the insurance carrier suffers because of the crash. Settlement agreements typically include provisions absolving the insurance company of any future losses. Even if someone’s medical condition worsens or their vehicle turns out to be unrepairable, they usually cannot ask for more compensation once they have signed a settlement agreement or accepted settlement funds. The amount of insurance on a commercial truck is far higher than the coverage carried by the average driver.

The Federal Motor Carrier Safety Administration (FMCSA) mandates a minimum of $750,000 in liability coverage for any commercial truck that weighs 10,001 pounds or more. Some trucks carrying hazardous materials may have even higher insurance obligations. With so much money in play, the insurance company has quite a bit at risk. A settlement helps eliminate the possibility of future losses and typically involves resolving the claim for less than the maximum amount of compensation potentially available.

Insurance professionals use a range of tactics and tricks to convince people that a settlement is beneficial or to get them to accept less than they deserve. Most people coping with the stress of a disabled vehicle and serious injuries may not be in a position to properly handle those insurance company shenanigans. Partnering with a personal injury attorney may help people negotiate with insurance providers after a semi-truck collision. Those who understand the risks inherent in settling a semi-truck crash claim can potentially secure better compensation than those who settle quickly without proper support.