When you’re injured in an accident, insurance adjusters may present a quick settlement offer, but accepting it can be a costly mistake. Here’s why you should never settle for the first offer:
- Initial Offers are Often Lowball Offers
Insurance companies aim to minimize payouts. Their first offer may seem generous, but it’s often a fraction of what you’re entitled to, especially when considering future medical expenses or long-term impacts of the injury. The first settlement typically reflects the insurer’s goal to resolve the claim quickly and cheaply, rather than a fair compensation.
- Future Medical Costs and Lost Wages May Not Be Considered
After an accident, your injuries may worsen over time or require ongoing care that isn’t immediately apparent. Accepting an early settlement can leave you responsible for future medical expenses, rehabilitation costs, and other out-of-pocket costs. Additionally, if your injury limits your ability to work, the settlement may not account for long-term wage loss, forcing you to manage without adequate compensation.
- Pain and Suffering are Often Undervalued
The emotional and psychological effects of an accident, known as pain and suffering, are rarely factored into an initial settlement offer. These damages are often subjective and can vary significantly, making it essential to have legal representation to argue for the proper value. Insurance companies may overlook or underestimate these damages without pushback.
- You May Not Understand the Full Scope of Your Injuries
In some cases, the true extent of your injuries doesn’t become clear until days, weeks, or even months after the accident. For example, certain injuries like whiplash or traumatic brain injuries may have delayed symptoms that worsen over time. By accepting a quick settlement, you may lose the opportunity to seek further compensation as new injuries arise.
- Insurance Companies Have Experts on Their Side
Insurance companies employ skilled adjusters and attorneys whose job is to minimize payouts. Without your own legal representation, you may be at a significant disadvantage. They might use tactics to pressure you into settling quickly, such as claiming your case isn’t strong enough or that you could lose in court. A knowledgeable personal injury attorney can protect your interests and level the playing field.
- Legal Representation Can Increase Your Settlement
Studies have shown that victims represented by attorneys often receive higher settlements than those who negotiate on their own. A personal injury attorney knows how to accurately assess the value of your claim, including both current and future expenses, and will negotiate aggressively on your behalf. Attorneys also understand the tactics used by insurance companies and can push for a fair settlement.
- Once You Settle, You Lose the Right to Sue
Perhaps the most important reason not to settle too quickly is that once you accept a settlement, you lose the ability to file a lawsuit against the at-fault party or their insurer. A quick settlement may seem appealing, but it could leave you with unpaid medical bills or ongoing expenses that far exceed the payout.
- Evaluating All Damages Is Critical
Properly evaluating all the damages from your accident is critical before settling any claim. This includes both direct and indirect losses such as loss of consortium, diminished quality of life, and other non-economic factors. Without a thorough understanding of your situation and the potential for future medical and financial burdens, it’s easy to accept less than you deserve.
What Should You Do When Offered a Settlement?
If you receive a settlement offer, don’t feel pressured to accept it right away. It’s crucial to take the time to review the offer with a personal injury attorney who can assess its fairness. Your attorney will:
- Review the offer: Analyze whether the settlement is fair and if it covers both immediate and future damages.
- Communicate with the insurer: Negotiate with the insurance company to ensure you receive adequate compensation.
- Guide you through the process: Provide clear and honest advice about whether settling or pursuing litigation is the better option.
If you’ve been injured in an accident and are considering a settlement, don’t settle for less than you deserve. Contact McGilberry & Shirer LLP at 972-764-8675 to schedule a free consultation. As the leading personal injury attorneys in Dallas and Fort Worth, they have the experience and dedication to help you fight for fair compensation.