After a car accident, there’s a good chance you’ll be offered a settlement by an insurance company, whether it’s from your own or the other person’s policy. It can be tempting to accept this offer, especially if the amount seems like a lot of money. In reality, however, whatever an insurance company offers you is going to be mere peanuts compared to what you deserve.
Here’s why you should never accept the first settlement offer from an insurance company.
You may be able to get better compensation with a lawyer
The benefit of a lawsuit is that your case could be worth so much more than the insurance company is willing to pay. For example, if you go through the insurance adjuster directly, you’ll only get compensated for medical bills. In a lawsuit, there’s a chance you can get other forms of compensation. If you are hurt in a car accident and have to take a couple months off work, you might be entitled to recover lost wages and lost future wages. If your injuries are serious or permanent, there’s a chance you could recover loss of enjoyment of life or pain and suffering, among other claims.
What’s possible depends on the specifics of your case, but you have more options in a lawsuit, so you should never accept an insurance company’s settlement offer without first talking to a lawyer.
The first offer is almost always extremely low
Insurance companies are for-profit organizations that stay profitable by paying out small settlements. It’s unfortunate, but that’s just how the game works. Anytime you get a settlement offer, it’s going to be low. It doesn’t matter how injured you are – the offer will be relatively low compared to what you should get.
In addition to being cautious about accepting the first offer, you should also be wary about trying to negotiate a higher settlement. Insurance companies are always protecting their profits, and their goal is to pay you as little as possible. You could work really hard and use your best negotiation skills, only to have your numbers rejected or reduced in counteroffer after counteroffer. The amount of time and energy needed to negotiate with an insurance adjuster is too much. And at the end of the day, there’s a cap on your case that the adjuster can’t go above. Even if you successfully get them to offer you the maximum, it’s still going to be less than what you deserve.
Accepting an offer eliminates your right to sue
Once you accept an offer from an insurance adjuster, you can’t sue the other person for your injuries. At first, you might not think it matters. Why not just skip the court and get your money directly?
The minute you accept a settlement offer, you lose the right to sue. You might not think you want to file a lawsuit now, but it’s a good idea to talk to a lawyer before making that decision. Your case might be worth far more than you think, and filing a lawsuit doesn’t necessarily need to be an ordeal.
With a skilled, experienced attorney fighting for you, all you’ll need to do is show up to court and follow directions. You’ll need to provide your lawyer with your medical records and all information pertaining to your case, but that’s the easy part. They’ll handle the legal maze.
If you make the wrong decision and realize you were given a lowball settlement, there will be no recourse, and you’ll be stuck with little to no compensation.
Lawsuits are usually the better option to recover compensation
The whole insurance game is stacked against you as an injured person. You pay your monthly premiums, but there’s no guarantee you’ll get paid what your claim is worth. The insurance company is in complete control over what they’re going to give you, and even the best negotiators can’t win more than the case limit.
Before accepting any kind of settlement offer, contact an attorney to review your case. It’s easier to accept a settlement and be done with it, but what’s easier now might not be in your best interests for the future.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.