When your bills are piling up after an injury, it’s tempting to take the first offer you get from the insurance company. After all, something is better than nothing, and your bills aren’t going to wait, right? Not exactly. While it’s true that your bills might pile up for a bit, that’s not a good enough reason to jump at an offer.
Insurance companies are in business to make money, and they do that by paying out as little as possible. The first offer they provide will be much lower than what your claim is worth. To get fairly compensated, it’s crucial to wait until you understand the full extent of your injuries, damages, and potential future expenses. Chances are, you deserve a larger settlement.
Accepting a settlement eliminates your right to future claims
In most cases, the minute you accept a settlement, you lose the right to pursue additional claims. Settlement agreements are final. Once you sign, you can’t reopen the case if complications arise later, and you can’t file a lawsuit. Talk to a personal injury lawyer before even considering accepting a settlement.
A lawyer can determine what your case is worth and will negotiate on your behalf. Depending on your situation, you might be better off filing a lawsuit rather than battling an insurance adjuster. Either way, it’s a wise move to have a lawyer handle your negotiations for a personal injury claim. When negotiating with a lawyer, adjusters are more likely to treat your claim seriously and agree to a fair settlement, knowing if they don’t, the company could end up in a lawsuit.
An insurance adjuster’s job is to minimize payouts
The number one job an insurance adjuster has is to pay out as little as possible to protect the company’s profits. They do this by providing extremely low initial settlement offers as a standard practice, hoping injured parties will accept the offer before realizing the true value of their claim. They’re counting on a person’s desperation to alleviate financial stress, and a lot of times, it works.
If you accept the first offer you get, you’re guaranteed to get less than you deserve. However, even when you negotiate for a higher payout, you’re probably getting less than what your case is worth. Every insurance adjuster is given a maximum value for the cases they handle, and they’re not allowed to negotiate past that dollar amount. Since you’ll need to fight hard for every dollar, you may never get close to that ceiling, even after several rounds of negotiations. At that point, most people quit negotiating out of exhaustion, and that’s exactly what they want. If you settle at this point, you’ll be short-changing yourself.
You might need future treatments
One of the downsides to accepting the first offer from an insurance company is not knowing if you’ll need future medical treatments. When you don’t yet know the full extent of your injuries, you can’t negotiate for your long-term needs. Some injuries take weeks or months to fully manifest and you could need physical therapy in the future. Settling early means you might not get enough money to cover your future needs.
Many people are advised to wait until they reach Maximum Medical Improvement (MMI) to settle. If you don’t know your final medical outcome, you can’t accurately calculate your damages. Waiting to reach MMI makes it easier for doctors to estimate your future treatments and potential disabilities and limitations.
A permanent injury deserves higher compensation
If your injury turns out to be permanent, your settlement should reflect your need for lifelong care. This should include future lost earnings if your ability to work has been impacted along with ongoing medical needs, including home modifications and home care aides.
Persistence pays off
Negotiating with an insurance adjuster isn’t a fast resolution, but it’s often worth the wait. Consider your initial offer just a starting point. Your attorney will take that offer and push back with evidence consisting of medical bills, lost wages, and pain and suffering to get the insurance company to increase their offer. It will take multiple rounds of negotiations, and you’ll get a better result with an attorney, but you can get a substantially higher settlement compared to the first offer.
Patience pays off
When it comes to personal injury settlements, patience is your best strategy. Accepting a quick payout might feel like relief short term, but it can cost you big in the long run. By waiting, fully understanding your injuries, and working with an experienced personal injury attorney, you can maximize your compensation and secure the financial support you’ll need for the future.
