Why Is It Best Not To Accept The First Settlement Offer From The Insurance Company?

If you suffered injuries in a car accident that was caused by someone else’s negligence, you might be thinking of filing a claim against the at-fault party. If this is the case, you need to know that the negligent party’s insurance company might try to take advantage of you; this means you need to be cautious. Being cautious entails, among other things, not being quick to accept the insurance company’s first settlement offer. Accepting this offer might be tempting, especially if you are struggling with huge medical bills and are unable to work, but there are several reasons why it’s best not to accept it. In this article, we discuss why it’s best not to take the first settlement offer from the insurance company.

The First Settlement Offer Rarely Takes Into Consideration a Claimant’s Long-term Needs

Sometimes, injuries can be more severe than a victim initially believes. An injury you think will take a few weeks to heal might end up taking months or years to recover, potentially leading to substantial future medical bills. Unfortunately, when insurance companies make an initial settlement offer, they do so without considering these potential future expenses.

Suppose you accept an initial settlement offer from an insurance company made before you have understood the full extent of your injuries. In that case, you might end up having to pay future medical expenses out-of-pocket. Some of the expenses you may end up paying out-of-pocket include, among others;

• Hospitalization
• Surgery
• Rehabilitative therapy
• Physical therapy

Apart from cheating yourself out of what you deserve as compensation for medical expenses, accepting an initial settlement offer from the at-fault party’s insurance company might mean cheating yourself out of what you deserve as compensation for lost wages, pain and suffering, and many others.

First Settlement Offers Are Usually a Starting Point for Negotiations

When the at-fault party’s insurance company presents its first settlement offer, you need to keep in mind that it is merely starting settlement negotiations. You can submit a counter-offer and the reality is that the insurance adjuster handling your case has the authority to offer you more than the initial amount. Therefore, do not be scared of rejecting the first settlement offer. Even if the insurance adjuster tells you they do not have the authority to offer you more, you should not be quick to take the first offer. Remember, this is just part of the insurance company’s strategy to get you to accept a low figure so it can save money.

Low Policy Limits

When trying to obtain compensation from a negligent party’s insurance company, the only time you might have to accept the first settlement offer is if the first offer is for the available policy limits. However, even in such a situation, an investigation will be necessary to determine all the available limits. In such a situation, you’ll need verification of the at-fault party’s coverage, especially if you have sufficient insurance and there’s a basis for a valid underinsured motorist claim.

Contact Us for Legal Help

Our Miami personal injury attorneys at The Pendas Law Firm can help you negotiate with the at-fault party’s insurance company. We can identify and see through the at-fault party’s strategies and help you obtain the maximum possible amount of compensation. Contact us today to schedule a consultation.

The Pendas Law Firm also represents clients in the Orlando, West Palm Beach, Bradenton, Daytona Beach, Jacksonville, Tampa, Ocala, Fort Myers, and Fort Lauderdale areas.