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Get the Insurance Company to Set Up a High Reserve Account

You may be wondering what a reserve account is and what you can do to make it higher. This is the account your insurance company uses to pay your claim. This amount is meant to cover all your costs and is set up as soon as you file your claim. At this point, the claims adjuster has little information about the accident and the injuries you sustained. Therefore, the reserve account may be small. This is not good news if you sustained serious injuries that could total hundreds of thousands of dollars.

If your reserve account is small, the insurance company will pressure you to settle for a low amount, since it won’t have enough money set aside to pay your claim. You don’t want this to happen. You want the insurance company to start off with a larger reserve so you don’t have to worry about negotiating a settlement.

Fortunately, there are things you can do to influence the amount of money the insurance company puts in your reserve account. Read on to understand how reserves work and what you can do, as well as how this is one of the best kept secrets to settling your car accident injury claim.

How Are Reserves Calculated?

Reserves are typically up to 12 percent of an insurance company’s revenue. Insurance companies gather extensive data to estimate how much a typical claim may cost. Data may be organized by claim type, size and other factors.

Underwriters also use probability to determine accident risk. They might also assess any open claims at the end of a fiscal year to determine the amount of an average claim. Therefore, if your claim is more complex than the average accident claim, you’re going to end up with a small reserve. That’s why you need to work to increase it.

What You Can Do

Insurance adjusters can update the reserve amount as they learn more about your case, so give them the information they need. As soon as you see your doctor, contact the insurance company with any updates, such as new injuries or necessary medical procedures. Give the adjuster information about your occupation and wage loss as well so they have an idea of how much lost income you will have by the time you return to work.

Working with Insurance Claims

Once you file your claim, insurance companies will want to have the reserve pretty much set within six months. Therefore, it’s important to update the insurer along the way.  You don’t want to surprise the insurer with a demand letter for $1 million a year later.

Working with the insurance company to raise your reserve can help you receive the compensation you deserve. Of course, it is also encouraged that you contact an attorney first to help with this process. To be sure, a talented attorney will be able to assist you throughout each step of your claim and ensure you recover the compensation that you deserve.

Read about the other secrets:

  1. Conduct a complete investigation.
  2. Get photographs of all important elements in your case.
  3. Don’t release your medical records to the other party’s insurance company.
  4. Get the insurance company to set up a high reserve account.
  5. Keep the adjuster informed about the seriousness of your injuries.
  6. Don’t let the insurance adjuster pressure you into settling your case.
  7. Keep a day-by-day diary of your injuries.
  8. Know all your damages.
  9. Keep all bills and receipts related to your accident.
  10. Know all your injuries.
  11. Know your sources for insurance coverage.
  12. Stay under your doctor’s care until your doctor releases you.
  13. File your lawsuit right away.
  14. Ask a qualified trial lawyer to evaluate your case.
  15. If you decide to hire a lawyer, choose a trial attorney who isn’t afraid to go to court.