Dealing with the aftermath of a car accident can be hard. It is easy to feel overwhelmed by the event. This is especially the case if you are recovering from your injuries, dealing with lost income, managing vehicle repairs, and trying to navigate an insurance claim all on your own.
Then comes discussions with the adverse driver’s insurer. Oftentimes, they makes a settlement offer, and in some cases early on. While you might be tempted to take the money and move on, consider the scope and depth of your injuries. If you are unsure about how to value your injuries in terms of a settlement offer, it is best to retain seasoned counsel. However, if you were injured in a car accident, taking the first settlement offer you receive from the insurance company right away might not be in your best interest. Below is a look at why you should approach such a situation cautiously and what to do before making any decisions.
Low First Settlement Offers
Insurance companies are businesses like any other. Their goal is to maximize profits. One way of doing this is by offering quick settlements soon after an accident. Since you are dealing with a lot immediately after a car accident, an offer from the insurance company might seem like a dream come true. However, the first settlement offer from an insurance company rarely reflects the actual value of your claim. Insurance companies know that accident victims may be desperate to get a check soon after an accident. Therefore, they make a low offer, hoping a desperate, uninformed victim will accept it.
Insurer make low initial settlement offers strategically to minimize payouts. Insurance companies typically base their initial settlement offers on limited information, such as visible property damage and early medical records. They don’t consider future medical needs. Insurance adjusters frequently downplay or exclude compensation for pain and suffering and may calculate your lost wages inaccurately. Initial settlement offers are usually generated using general formulas that may not take into account your unique situation.
You May Not Understand the Full Extent of Your Injuries Yet
You May Not Understand the Full Extent of Your Injuries Yet
Following a car accident, it takes time to understand the full extent of your damages. By the time the insurance company makes an initial offer, you may not fully understand the long-term impact of the accident on your health and finances. Accept a settlement offer before fully understanding scope of damages, risks leaving money on the table. After accepting a settlement, you basically waive your right to future compensation, even if your condition worsens or needs ongoing care.
It’s advisable to wait until you reach maximum medical improvement (MMI) before accepting a settlement offer. This is the stage when your condition has stabilized, and future treatment needs are clear.
Consult an Attorney Before Accepting an Offer
Before accepting a settlement offer, it is wise to consult a car accident attorney. An experienced attorney can evaluate the fairness of the offer based on your unique circumstances. They can review the settlement, calculate the full extent of your damages, and negotiate with the insurance company on your behalf. An attorney with experience handling car accident cases will fight for the maximum compensation possible and won’t settle for less than you deserve.
What Does a Fair Offer Cover?
A fair settlement should cover all your economic and non-economic damages. Determine claim value requires an accurate understanding of the accident’s impactnow and in the future.
Contact The Stone Law Office to schedule a consultation with one of our attorneys experienced in helping car accident victims determine fault.
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