After an accident, many people expect the insurance company to handle their claim fairly and provide compensation that covers their losses. Unfortunately, insurance companies are businesses focused on protecting their profits, not maximizing your settlement. One of the most common mistakes accident victims make is accepting the first settlement offer too quickly.
Though the idea of accepting the first offer might be very tempting to take into account, considering that the medical bills and lost earnings are already stacking up, accepting this offer will greatly influence the rest of your life financially speaking. Most often, the offer presented to you is way lower than what your case might be really worth.
It will be important for you to find out why you shouldn’t ever accept the first insurance settlement offer.
Insurance Companies Want to Settle Quickly
Usually, insurance adjusters reach out to those injured not long after the accident happened. In this case, the person injured can be in pain, confused, or unaware of the seriousness of his or her injuries.
Settlement is given quickly by the insurer since it wants to:
- Close the case quickly
- Reduce their financial liability
- Prevent you from hiring a lawyer
- Avoid future claims for additional damages
If you settle for the offer and sign the release, you will no longer be able to demand additional payments if your injuries get worse.
Early Offers Often Ignore Future Medical Costs
Some injuries can take months, years, or even a lifetime of treatment, rehabilitation, and further medical care. At the very beginning of the process, you may still be unaware of the total damages you have suffered from the incident.
Medical conditions that usually become apparent later are as follows:
- Chronic pain
- Back injuries
- Neck injuries
- Brain injuries
- Nerve damage
- Emotional trauma
The initial compensation offer is based on your present medical expenses, rather than any future medical costs that could occur.
You May Not Know the Full Value of Your Claim
Settlements by insurance companies are arrived at carefully, keeping in mind their best interest. But many injured parties are not always fully aware of the type of damages that could have been claimed from them.
An appropriate settlement would comprise:
- Medical bills
- Future treatment expenses
- Lost wages
- Reduced earning capacity
- Pain and suffering
- Emotional distress
- Property damage
- Rehabilitation costs
Most often than not, people underestimate the value of their claims without proper legal advice.
Insurance Adjusters Use Pressure Tactics
Adjusters are trained negotiators who can seem friendly and helpful, but their main intention is often to resolve your case by paying out as little as possible.
These are just some of the methods used:
- Offering quick cash settlements
- Telling you the offer is “final”
- Suggesting you do not need a lawyer
- Downplaying your injuries
- Pressuring you to settle quickly
This will attempt to persuade you into taking less than what you might be entitled to.
You Could Still Be Receiving Medical Treatment
Assuming that you are still under treatment, it is still too early for you to conclude negotiations about settlement. At this point, doctors would not know:
- Whether you will fully recover
- If surgery is needed
- How long treatment will continue
- Whether permanent disability exists
Settling at this stage means suffering financial losses.
Comparative Fault May Affect Your Claim
Sometimes insurance companies may attempt to lower settlements by blaming you for part of the accident’s cause. They do this based on statements you make, your medical records, or by misrepresenting the facts of your situation.
A good personal injury attorney can help protect you from this kind of blame.
A Lawyer Can Negotiate a Better Settlement
These types of lawyers understand the workings of an insurance company and how to negotiate fairly. A lawyer can:
- Review the settlement offer
- Calculate the full value of your damages
- Gather medical evidence
- Negotiate with insurance adjusters
- Protect your legal rights
- File a lawsuit if necessary
In many instances, personal injury clients that retain lawyers get higher settlements than those who do not use a lawyer.
You Only Have One Opportunity to Settle
When you accept the settlement deal, sign the release form, and end the case, you cannot go back and re-open the case even if you find that you have some problems medically or financially.
This is exactly why it is so crucial for you to be able to know everything about your damages.
Every Accident Case Is Different
However, each case is different. The settlement varies according to a number of things, including:
- Severity of injuries
- Medical treatment costs
- Lost income
- Long-term disability
- Pain and suffering
- Liability evidence
- Insurance policy limits
A lawyer will be able to advise you about this.
Legal Representation Gives You Peace of Mind
Interactions with insurance companies when you are recuperating from injuries could be quite challenging. By hiring an expert attorney, you will have all the time that you need to rest as your attorneys do the talking.
Legal professionals will also reduce the likelihood of any errors being made in the process.
Conclusion
Accepting the first insurance settlement offer may seem like a quick solution after an accident, but it can lead to serious financial consequences in the future. Insurance companies often make low initial offers before the full extent of injuries and damages is known. Before agreeing to any settlement, it is important to understand your legal rights, evaluate your medical condition fully, and consider speaking with an experienced personal injury lawyer.
If you are looking for trusted legal representation in San Francisco, Sulfab Law Office is here to help. Our experienced team handles personal injury claims, accident cases, insurance disputes, and settlement negotiations for injury victims throughout San Francisco. As a leading personal injury law firm, Sulfab Law Office is committed to fighting for the compensation and justice our clients deserve.