After a car accident, dealing with insurance companies can be as stressful as the incident itself. While receiving a quick settlement offer might seem like a relief, it’s often not in your best interest to accept it immediately.
Why the First Offers is Almost Never the Best Offer
Unfortunately, car accidents often bring out the worst in everyone involved. And if you aren’t careful, you could end up on the losing end of things.
“Any time anyone is involved in a car crash, they’ll need to file a claim with their own insurance company and that of the other involved driver,” Raybin & Weissman, P.C. explains. “It may seem simple enough to obtain a reasonable settlement, but unfortunately, insurers only masquerade as being on your side and rarely, if ever, prioritize your needs above their own.“
Insurance companies are in business to make money, which means they often aim to settle claims for as little as possible. As a result, the first offer you receive is likely calculated to minimize what they pay out, covering only the most obvious expenses and often overlooking longer-term costs. (In many cases, it’s only worth 10 to 15 percent of the actual value of the claim.)
That first offer might not take into account all your current and future medical needs, ongoing care, or therapy. It may also undervalue the damage to your property or any other losses you have incurred. If you accept this offer without understanding the full extent of your damages, you could end up paying out of pocket for expenses that should have been covered.
Don’t be surprised if insurers put pressure on you to accept a quick settlement. They might suggest that this is the best offer you’ll get, or they may imply that it’s a limited-time offer. But think about why they’re using these tactics. They’re obviously trying to put pressure on you because they know they’re lowballing you. If it was a genuine offer, they wouldn’t feel the need to move so fast.
The Correct Way to Handle Things
If the wrong way to handle things is to jump at the first settlement offer that comes your way, what’s the right way? Let’s take a look:
- Hire a lawyer: A skilled lawyer can assess the full impact of the accident on your life, including current and future medical costs, lost wages if you’re unable to work, and other damages. They understand the tactics insurance companies use and how to counter them. Don’t try to do this alone – hire an attorney.
- Don’t Rush: Take your time to think about the offer. Consult with a lawyer and make sure you understand all the ramifications of accepting the settlement. You only get one shot at this – there’s something to be said for taking your time and being as patient as possible.
- Gather Full Documentation: Make sure you have all the documentation related to the accident and your expenses. This includes medical records, repair bills, and any proof of lost wages. The more detailed your documentation, the stronger your leverage will be in negotiations.
- Consider Future Costs: Sometimes, injuries worsen or lead to other health issues over time. Ensure that the offer considers potential future complications linked to your accident. The last thing you want to do is only account for the medical expenses you’ve already incurred without considering the months or years of medical bills that are to come.
- Communicate Through Your Lawyer: Once you engage a lawyer, let them handle all communications with the insurance company. They will protect your interests and ensure that you don’t say anything that could undermine your position.
Patience Pays Off
Negotiating a fair settlement can take time, but patience often pays off. A rushed decision might leave you struggling with unforeseen expenses down the road. Remember, once you accept a settlement and sign the release, you cannot go back and ask for more money if your situation worsens or if new expenses arise.
Settling a car insurance claim is not just about getting some compensation. You need enough compensation to cover all of your losses – including physical, financial, and emotional. By understanding the value of your claim, resisting pressure to settle quickly, and using skilled legal representation, you can significantly improve your settlement outcome.