Should I Accept the First Settlement Offer from an Insurance Company?

When you are involved in an accident, you may be dreading the process of filing a claim with the insurance company of the negligent party. As such, you may be pleasantly surprised when the insurance company offers a quick settlement, as you may not have been expecting a fast turnaround. However, it’s important to understand that this offer may be significantly less than what you deserve in the hopes you accept without negotiation. The following blog explores these matters in further detail, including the importance of working with a Vero Beach injury lawyer to discuss your legal options and help ensure that the settlement you are offered is reflective of the damages you’ve suffered.

Why Will an Insurance Company Make a Quick Settlement Offer?

When you are injured in an accident in which another party is at fault, you may be shocked when the insurance company offers you a settlement before you even ask. This typically happens in one of two scenarios, and both should be viewed as red flags.

First, the insurance company may be offering less than their insured’s policy limits in the hopes that you will quickly accept and never hire an attorney to investigate all coverages and liability issues. In this context, the insurance company may be assuming your unfamiliarity with the liability and coverage issues inherent in any personal injury claim. Worse, the insurance company may be betting that you will accept the offer due to a dire financial need, particularly in the face of significant medical bills.

Second, the insurance company may be offering full policy limits in a case with catastrophic harm and relatively low insurance policy limits. They do this to avoid any future exposure for insurance bad faith. Both of these scenarios are dangerous.

What Are the Risks of Accepting an Offer Too Early?

The biggest risk to accepting a settlement offer is that it may prejudice other insurance coverage. For example, accepting a settlement from the negligent driver in a car crash without properly notifying other relevant insurance carriers can eliminate your claim for uninsured or underinsured motorist insurance benefits. Likewise, accepting a bodily injury liability settlement that you have been told represents the negligent driver’s “policy limits” will eliminate a claim against that driver for other insurance policies that may have applied, such as excess or umbrella insurance.

Once a settlement claim has been accepted, it cannot be altered. As such, you’ll find that accepting an early offer can harm you in the event you discover you require additional medical care or new injuries evolve as a result of the injury.

For example, if you are injured in a slip and fall, you may accept an offer before it’s discovered that you’ve suffered a traumatic brain injury as a result of the injury, because these can take time to manifest. However, because you’ve accepted the offer, you will be unable to seek compensation for the new complications and damages endured as a result of the accident.

How Can an Attorney Help?

Navigating the aftermath of an accident can be incredibly complicated, especially when you are still healing, both physically and mentally. Unfortunately, the insurance company may take advantage of this. However, if you are working with an experienced attorney, they can help protect your rights during these difficult times.

At Ullian Trial Law, our team understands the impact that an accident can have on your life, which is why we are dedicated to helping you fight for the best possible outcome for your situation. If you are hurt and need help, do not hesitate to contact our firm today.