Do Expenses Need to be “Proven” Before They Can Be Included in a Settlement?

Key Points:

• Compensation Often Requires Proof: Although it is important to establish fault in car accidents, you also need proof of related expenses to secure full compensation for damages.
• Tracking Expenses for Insurance: In our experience, insurance adjusters will ignore expenses incurred after an accident that don’t have proof. Although they attempt to be fair when estimating costs, not having proof of things like medical expenses might make your resulting insurance payout less than expected.
• Types of Expenses: It is fairly easy to connect visible costs like car repairs and tow expenses to an auto accident, meaning they can be quickly compensated. However, medical treatments operate as a hidden expense that is more difficult to prove with insurers and will require more extensive documentation.

When it’s clear that you are the victim of a car accident, you need to shift your focus to securing full compensation, which is in and of itself a different challenge from proving fault. Proving you are the victim requires wholly different documentation than showing the costs incurred to you by an accident. We have had a lot of experience with clients that come to us seeking help when their insurance compensation falls short of expectations, and, more often than not, this is due to insurers overlooking or dismissing expenses that haven’t been documented properly. Insurance companies may try to sidestep these expenses to reduce their costs, which is why it is crucial to prove additional expenses are tied up with the accident. Fair compensation isn’t just about establishing blame. It’s a battle to receive recognition and reimbursement for every expense you have faced. We believe that if the accident wasn’t your fault, it shouldn’t cost you a dime.

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Who Determines How Much Your Accident Costs?

At your insurance company, an insurance adjuster will be looking at the details of your accident to determine overall costs. This expert looks closely at every detail, from photos of the vehicles to photos of the injuries, to decide the financial impact. While their main goal is to protect the insurance company’s money, they are also tasked with evaluating claims fairly. However, tough negotiations around costs are often the name of the game because this determination ends up being the main factor in how much an insurance company ends up paying.

Some Accident Expenses Are Obvious, Others Are Not

Some accident expenses are immediately apparent, such as rental car expenses and auto body shop costs, which are usually recognized by insurance adjusters without dispute. These visible damages like a shattered windshield or the absence of a car are clear to see. When an insurance company has a relationship with a business that can provide the service to fix that damage, they go with it.

However, not all expenses are as obvious or visible. Costs like ongoing physical therapy, medical equipment, or lost wages can accumulate silently and become significant financial burdens. These hidden expenses require thorough documentation and extensive negotiation with insurance companies, which may be hesitant to acknowledge their full impact. The challenge lies in ensuring that every cost, whether visible or hidden, is fully recognized and compensated, highlighting the crucial role of uncovering these less apparent damages for your insurance adjuster.

Do Car Accident Expenses Have to Be Proven in Order to Be Compensated for Them?

Insurance companies are known to refuse to cover certain expenses that do not have a proven connection to a car accident, so it is crucial to have the documentation for these expenses to negotiate reimbursement into a settlement. If an insurance company initially rejects a certain expense, having well-documented, convincing evidence might help an insurer change their initial offer. Without proof, an insurance company will be unlikely to negotiate on specific expenses. In our experience, it is best to have solid evidence connecting expenses to the car accident in question to secure maximum payment.

An Example of How A Lawyer Can Get You The Compensation You Deserve Following a Car Accident

It’s quite common for someone to be rear-ended, not report any severe injuries at the scene of the accident, and then gradually experience increasing neck pain. This pain often stems from a type of silent injury known as whiplash. When accident victims file a claim with the insurance company of the at-fault driver, they might mention the injury, but without any bills or invoices, the insurance adjuster will proceed with an initial estimate. In the meantime, the victim consults a neurologist and a chiropractor to address and alleviate their spinal pain. After a few weeks, medical bills begin to accumulate, and the car accident victim is shocked to discover that the initial insurance settlement offer falls short of covering these medical expenses. At this point, a car accident lawyer typically gets involved to advocate for the victim and ensure proper compensation.

Once involved, the car accident lawyer collects all the bills and delves deeper, obtaining X-rays and witness statements from doctors who confirm clear damage to parts of the victim’s spinal cord. They even demonstrate how the severity of the accident could cause this type of injury. The lawyer outlines these costs in a demand letter and requests a higher settlement amount. After reviewing the evidence, the insurance company agrees. This scenario illustrates an ideal situation where a car accident lawyer steps in to substantiate the expenses.

Which Car Accident Expenses Do Not Require Proof for Compensation?

Some insurance companies will actually approve small expenses like Uber or Lyft fares or roadside assistance fees without requiring receipts or bills. However, make sure you keep track of them because as expenses increase, the likelihood of your insurance adjuster requiring proof also increases.

What Evidence is Key to Proving Your Car Accident Expenses?

Strengthen your claim for car accident expenses with these key pieces of evidence:

• Receipts and Invoices: Save any documentation related to car repairs or medical treatments to demonstrate all relevant costs to your claim.
• Medical Records: Your records showcasing treatments relating to your accident will help connect your medical bills to the specific car accident.
• Repair Estimates and Bills: Your bills from getting your car fixed will illustrate the extent of the damage and provide the financial impact of the car accident.
• Police Reports: These reports play a critical role by providing an official account of the accident, which helps connect your expenses to the incident.
• Photographic Evidence: Photos from the accident scene and of the damages are powerful as they visually document what happened and showcase the severity of the damage.
• Witness Statements: You can lend credibility to your claims if you have statements from anyone who witnessed your car accident.
• Expert Testimony: Complex cases may require the input of specialists to confirm the details of your car accident and showcase the reason behind certain expenses. Examples include accident reconstruction experts and medical professionals.

Collecting these types of evidence makes your claim more compelling and greatly improves your chances of a favorable outcome. Especially if communicated properly in a demand letter.