Should I Accept the First Offer the Insurance Company Offers Me?
When you have been injured in an accident, the last thing you want to deal with is an unfair settlement offer from the insurance company. But how do you know if their first offer is a lowball attempt to shortchange you or if it is actually reasonable compensation for your damages?
Why You Should Be Cautious About First Offers
Unfortunately, insurance companies are not in the business of paying out top dollar on every claim. In fact, their goal is to settle for as little as possible in order to protect their bottom line. They may present an initial offer soon after the accident, before the full extent of your losses is known, hoping you will accept a quick payout and sign away your rights.
But here is why their first offer is rarely their best offer:
The Full Impact Is Still Unknown
In the immediate aftermath of an accident, it is impossible to know how long your recovery will take, what future medical care you will need, and how much work you will ultimately miss. Once you accept a settlement, you generally cannot go back for more money later if your condition worsens or new injury-related expenses arise. Wait until you have reached maximum medical improvement before considering settling.
They Are Trying to Minimize Your Claim
Insurance adjusters are trained to downplay the severity of injuries and losses in order to reduce payouts. They may argue that your injuries were pre-existing or are not as serious as you claim. Or they might try to shift some of the fault for the accident onto you. Do not let them bully you into undervaluing your case.
What to Do When the First Offer is Insufficient
So, if you receive a settlement offer that seems too low, what should your next steps be?
Review the Offer Carefully
Read through the details of the offer and look for any missing damages, inaccurate statements, or unfair allocations of fault. Compare it to your own understanding of your total losses. Consider it a starting point for further negotiations rather than a take-it-or-leave-it proposition.
Respond With a Counteroffer
If you believe the first offer is inadequate, send the adjuster a written response detailing the reasons why and make your own demand for fair compensation. Include evidence to support your counteroffer, like medical records, bills, proof of lost income, and photos of your injuries and property damage. Show that you know how to value your claim and will not be short-changed.
Hire an Experienced Personal Injury Attorney
The best way to even the playing field with the insurance company and fight for the settlement you deserve is to have a knowledgeable advocate on your side. A personal injury lawyer can gather evidence, build your case, handle all communications with the insurer, and advise you on when their offer is fair or if you should continue to negotiate or file a lawsuit.
Do Not Be Pressured Into Settling Too Soon
Be patient and prepare for a process of back-and-forth negotiations. Also, you should strongly consider consulting with an experienced personal injury attorney before settling to ensure you are getting the maximum compensation possible. Get in touch with our team at Kosnett Law Firm today.
