After a car accident, motorcycle crash or other serious injury, financial concerns can hit almost immediately. Medical bills begin to accumulate, you may be unable to work and the stress from dealing with insurance companies can be overwhelming.
In the middle of a financial crisis, a quick settlement offer can seem like a windfall, and it can be tempting to accept it. However, accepting a quick settlement may not be in your best interests.
Why insurance companies make quick settlement offers
In many cases, insurance companies try to resolve claims as quickly as possible. An early settlement allows them to close the case before additional medical treatment, lost income or other damages increase the claim’s value.
These settlement offers are often based on limited information. As a result, an early offer may not fully compensate you for the losses you ultimately experience.
Some injuries, such as whiplash, traumatic brain injuries, herniated discs and soft injuries, may gradually worsen in the days and weeks following an accident.
In some situations, after additional testing, your doctor may determine that you need surgery, physical therapy or long-term care. If you have already accepted a settlement, you generally can’t go back and ask the insurance company for more money simply because your injuries turned out to be more serious than expected.
Medical expenses are only one part of a personal injury claim. A serious accident can impact nearly every aspect of your life.
Depending on your injuries, you may experience lost income, reduced earning capacity, ongoing rehabilitation costs or pain and suffering. It’s difficult to place a value on these losses in the days immediately following an accident.
Accepting an offer before these damages are fully understood could leave you responsible for expenses that the settlement no longer covers.
Settlement negotiations are common in personal injury cases. An initial offer is often just the starting point and not the final amount an injured person may recover.
It’s also important to be careful when speaking with insurance adjusters. Any statements you make may later be used to argue against the severity of your injuries or reduce the value of your claim.
Take the time to understand the full extent of your injuries and their long-term impact. A legal professional can negotiate with the insurance company on your behalf and help get the settlement you deserve.