Why You Should Never Accept the First Car Accident Settlement Offer

Being involved in a car accident can be overwhelming, especially when you’ve been injured. Dealing with car repairs is one thing, but injuries can make the experience even more taxing. Worse, insurance companies often take advantage of people in pain by offering a low settlement amount. 

If you’re just trying to get things over with, you’ll be tempted to accept their offer, and if you do, you’ll most likely be getting short-changed. Here’s why you should never accept the first settlement offer following a car accident.

1. Insurance companies lowball offers

 Typically, insurance companies quickly reach out to injured parties with a settlement offer in hopes of closing the case at the lowest possible cost. Insurance adjusters are given a maximum value for every case they handle and are told they can’t offer any more money. However, when they do make the first offer, it’s significantly less than the maximum because they’re hoping the injured party will just take what they can get.

The only way to get a good settlement from an insurance company is to hire a lawyer to negotiate on your behalf. Car accident attorneys are expert negotiators and know exactly what a case is worth. If you have the legal option to sue the at-fault party, and your attorney thinks you have a strong case, consider suing for damages. 

If you win your case, you’ll get far more compensation than through negotiating with an insurance adjuster. However, if you’re in a no-fault state, you’ll be required to file a claim with your own insurance provider and can only sue under specific circumstances that vary by state.

Since insurance companies lowball offers and have a maximum value for your case, it’s going to take a lot of energy and effort to negotiate. Without experience, you’ll never know if you’re even close to getting paid what your case is worth. Even if you can’t sue the at-fault party, a car accident lawyer can negotiate with the insurance company on your behalf to get you the maximum possible payout.

2. Insurance settlements don’t cover lost wages

 In addition to being offered a low settlement right out the gate, any insurance settlement offer you get – even if they offer you the maximum – won’t cover any damages outside of your injuries and physical repairs to your car. If you have to take time off work to heal from a car accident injury, you won’t get lost wages from your claim.

The only way to get lost wages included in your compensation is to hire an attorney and file a lawsuit. Since most cases don’t go to trial, you’ll most likely settle out of court. A car accident lawyer will have the experience required to know exactly what your case is worth, and will fight for every penny during negotiations. No matter how great you think you are at negotiating, a lawyer will be better. Not only is a car accident settlement a special type of negotiation, but lawyers have the ability to justify anything. A good lawyer will use all of your case details to justify the highest payout possible.

3. Insurance coverage may not be enough

 Even if you do manage to get the maximum payout from an insurance company, there’s a chance that it won’t be enough to cover the damage, let alone your medical bills. For example, say you carry the minimum property liability coverage and your accident exceeds that amount. Typically, you’ll need to turn to your own underinsured driver coverage, and many people in this situation discover even that isn’t enough.

 No matter how much money a car insurance company offers you, never accept a settlement without talking to an attorney first. Every case is different, and while you might be required to take their offer, only a lawyer can tell you exactly how to proceed. 

4. Insurance companies aren’t truly assessing your needs

 It would be nice if insurance adjusters made offers based on actual needs and damages, but they don’t. They’ll give you a general ballpark figure, but it’s always going to be substantially low. Only a lawyer can evaluate your case for what it’s worth. 

Get legal help

 Navigating your way through a car accident settlement can be challenging, but discussing your case with an experienced attorney can help. Accepting the first settlement offer might seem like the easiest way to get through your ordeal, but it can cause financial strain if it won’t cover all your expenses. 

Lawyers understand all the tactics insurance companies use, and can help you get a fair settlement that truly accounts for your needs.