Exploring Car Accident Claims and Insurance Reserves

Yet another reason to speak with a local injury attorney before making any statements to the insurance company is the reserve amount set for your claim.  Insurance companies are obligated to reserve an amount of money on every injury claim stemming from a car accident that they have open.

The reserve amount is an amount earmarked on the insurance company’s balance sheet for the future payment of that specific claim.  You want the reserve amount on your insurance claim to be set appropriately.  If the reserve amount is set too low, it will make negotiating your injury claim down the road much more difficult.

The adjuster will not have set aside enough money for the claim and thus will not have sufficient authority when it comes to negotiation.  It is important for your attorney to provide information regarding the potential nature and extent of your injuries early on to educate the adjuster and make sure the reserve is set correctly.

In addition to medical documentation such as hospital discharge summaries and medical bill itemizations, any statements you make to the insurance company immediately following the accident can/will affect the reserve that is set for your claim, which is why it is important to speak with an attorney beforehand.

Related Pages

How Long Do I Have to File My Personal Injury Claim?

Top 5 Questions & Answers about Car Accident Injuries

Injured in Car Accident—Who Actually Pays for Everything?