What to Expect When Settling With the At-Fault Driver’s Insurance
Liability Is Rarely Accepted Right Away
One of the most common misconceptions I see is the belief that if fault is clear, the insurance company will immediately accept responsibility. In reality, most insurance companies will not accept liability until they complete their own investigation, regardless of how obvious the crash may seem.
That investigation can take weeks. During this time, the insurer typically collects:
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The official crash report
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A recorded statement from the claimant (you)
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A recorded statement from their insured driver
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Statements from any witnesses
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Photos, videos, and sometimes scene inspections
Until this process is complete, the insurance company often refuses to move forward with repairs, rental vehicles, or settlement discussions. This delay is frustrating, but it is standard practice.
Property Damage: Repairs or Total Loss
Once liability is accepted, the insurance company will turn its attention to your vehicle damage. At that point, the carrier must determine whether your vehicle is repairable or a total loss.
If Your Vehicle Is Repairable
If the vehicle can be repaired, you have important rights:
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You get to choose the collision repair center—not the insurance company.
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The insurer must pay for reasonable repairs to restore the vehicle.
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You are entitled to a rental vehicle while repairs are being completed.
Once repairs are finished, the property damage claim does not necessarily end there.
Diminished Value Claims
After a vehicle is repaired, it is no longer worth what it was before the crash. Even a perfectly repaired car now has a wreck history, which lowers its market value. This loss is known as diminished value.
Diminished value is typically:
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A small percentage of the total repair cost
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Paid after repairs are completed
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Covered under the at-fault driver’s liability property damage coverage
If you have a lienholder on the vehicle, diminished value payments are often made payable to both you and the lienholder. In most cases, the claimant endorses the check and sends it to the lienholder, helping pay the vehicle off sooner than expected.
If Your Vehicle Is a Total Loss
If the vehicle is deemed a total loss, the process is different. The insurance company will evaluate your car’s Actual Cash Value (ACV)—what it was worth immediately before the crash.
To determine ACV, insurers typically:
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Search by VIN
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Compare make, model, year, mileage, and condition
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Look for similar vehicles in the market
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Account for prior damage or previous accidents
It is important to understand what the insurance company does not owe you. They do not have to buy you a new car, upgrade your vehicle, or cover replacement costs. Their legal obligation is limited to paying the fair market value of your vehicle before the crash.
There is also no diminished value claim when a vehicle is declared a total loss.
Bodily Injury Claims: Where the Real Risk Lies
Property damage claims—repairs, total loss, and diminished value—are paid under the defendant’s liability property damage coverage. However, bodily injury claims are entirely separate and are often where people make irreversible mistakes.
The at-fault driver’s bodily injury coverage is intended to compensate you for:
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Past and future medical expenses
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Lost wages
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Loss of earning capacity
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Pain and suffering
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Other non-economic damages
Shortly after the property damage claim begins—or sometimes even before it is resolved—you can expect a bodily injury adjuster to reach out.
The Early Settlement Trap
Insurance adjusters are trained to settle bodily injury claims as quickly and cheaply as possible. It is extremely common for them to offer what sounds like easy money—$5,000 to $10,000—shortly after the crash.
We have seen this scenario countless times:
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Someone needs cash quickly
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The offer sounds reasonable
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They accept the settlement
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Weeks or months later, they discover they need $30,000 or more in medical treatment
Here is the critical problem: once you settle, you are done forever.
Insurance companies require a signed release as part of any settlement. Sometimes, even depositing a check with language such as “full and final settlement” printed on it can legally close your case. After that, you cannot collect another dollar, no matter how severe your injuries become or how much medical care you ultimately need.
Why We Recommend Waiting
Our best recommendation to injured individuals is to put the bodily injury claim on hold for at least three months after the crash.
During that time:
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Get evaluated by medical professionals
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Listen to your body
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Do not ignore pain, stiffness, numbness, or headaches
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Allow enough time for injuries to fully reveal themselves
Many serious injuries—especially soft tissue injuries, disc herniations, and nerve damage—do not fully manifest in the first few days after a collision.
Paying for Medical Care Without Settling Too Soon
One of the biggest reasons people accept early, low settlements is fear of medical bills. If you have health insurance, use it. If you do not, a board-certified personal injury attorney can help.
At our firm, we routinely issue Letters of Protection (LOPs) to medical providers. These letters allow you to receive necessary treatment without paying upfront, with providers agreeing to be paid from the eventual settlement.
What the at-fault driver’s insurance company will not do is pay for ongoing treatment upfront unless you agree to settle your claim—and that settlement amount is rarely enough to cover the care you will actually need.
Final Thoughts
After more than five decades representing accident victims, my advice is simple: patience protects you. Insurance companies are not in a hurry to do what is right, and quick money often leads to long-term regret.
Understanding how liability investigations work, knowing your rights regarding vehicle repairs and diminished value, and resisting pressure to settle bodily injury claims too early can make a life-changing difference in your recovery—both physically and financially.
If you are unsure about your next steps, speaking with an experienced, board-certified personal injury attorney before signing anything may be the most important decision you make after a crash.
