Why Do Insurance Companies Want To Settle Personal Injury Claims Quickly?
If you have suffered injuries due to the negligence of another party and have filed an insurance claim, chances are, the insurance company will make you a quick settlement offer. It is pretty common for insurance companies to want to settle personal injury claims quickly. As a personal injury claimant, you need to understand why insurance companies push for quick settlements. That way, you can make informed decisions about your case. Below are some of the main reasons insurance companies make quick settlement offers.
- Minimizing Payouts
One of the main reasons insurance companies push for quick settlements is to minimize payout. It takes time for the full extent of injuries and damages, including medical expenses, lost wages, lost earning capacity, and pain and suffering, to become apparent. By settling a personal injury claim quickly, an insurance company can get away with paying a lower settlement that does not account for the full impact of the injury. The insurance company knows that you cannot request more compensation later once you sign a release. This means that if additional damages arise, such as future medical expenses, the insurance company is no longer responsible.
- Preventing Plaintiffs From Seeking Legal Guidance
Another common reason why insurance companies strive to settle personal injury cases as quickly as possible is to prevent plaintiffs from seeking legal guidance. Insurance companies know that claimants with legal representation tend to receive higher compensation. By offering a quick settlement offer, the insurance company hopes to get you to settle before you have had a chance to consult with an attorney, who might advise you to hold out for a substantial offer. The insurance company hopes to get you to settle before you can hire an attorney who knows their tactics.
- Avoiding a Lawsuit or Trial
When an insurance company offers you a quick settlement offer, it wants to avoid a lawsuit or going to court. Insurance companies usually want to avoid getting involved in lawsuits and lengthy trials. Litigating a personal injury case can be expensive. Additionally, lawsuits are uncertain. The at-fault party’s insurance company knows a jury may award you more money than anticipated. Court cases can also damage an insurance company’s reputation, leading to the loss of business.
As personal injury attorneys, we always explain to our clients that once they accept a settlement offer from an at-fault party’s insurance company and sign a release form drawn up by the insurance company, they give up their right to pursue any future compensation. In other words, once you sign a release form, your personal injury case is over. Unfortunately, we have heard stories of people quickly settling their personal injury cases, only to regret it later. Before accepting a quick settlement offer from the at-fault party’s insurance company, speaking to an attorney is a good idea. An attorney can evaluate the offer and advise you accordingly.
Contact Us for Legal Help
If you’ve been involved in an accident due to another person’s negligence, don’t let their insurance company trick you into accepting an unfair offer. Our Miami personal injury attorneys at The Pendas Law Firm can help you recover the compensation you deserve for your injuries and damages.
The Pendas Law Firm also represents clients in the Fort Myers, Fort Lauderdale, Tampa, Jacksonville, Ocala, Orlando, Naples, Melbourne, Bradenton, West Palm Beach, and Daytona Beach areas.
