Medical bills, vehicle repair costs, and other expenses can add up quickly after an accident. However, it’s important that you don’t accept a low insurance settlement offer after an injury.
Not only will the first offer likely be less than you deserve, but accepting it will also leave you on the hook for any medical expenses that arise later.
It can be difficult to determine what a fair accident settlement looks like. A Bakersfield personal injury lawyer can evaluate your case, calculate your damages, and help make sure you are fairly compensated.
Why You Should Not Accept a Low Insurance Settlement After an Accident
The first settlement offer you receive from an insurance company after an accident rarely reflects the true value of your personal injury claim. While a quick payout can be tempting, once you agree to a settlement and sign a release, you generally lose the right to seek additional compensation for the accident, even if new medical issues arise later.
Accepting the insurance company’s first offer is especially risky if you don’t yet know the full extent of your injuries. Some conditions, including soft tissue, spinal, and traumatic brain injuries, may take days or weeks to fully develop. If you settle before reaching maximum medical improvement, you could be left paying future medical expenses out of pocket.
The first settlement offer may also fail to account for lost wages, reduced earning capacity, pain and suffering, emotional distress, rehabilitation costs, and other damages related to the accident.
Once a claim is closed, it can be extremely difficult (or impossible) to reopen it, which is why it’s important to consult a personal injury attorney before agreeing to anything.
Signs That an Insurance Settlement Offer Is Too Low
Several warning signs may indicate that a settlement offer from an insurer is too low. You may be getting lowballed if:
- The offer arrives very quickly: It takes time for an insurer to accurately evaluate an injury victim’s damages. A quick offer is likely meant to resolve your claim before the full extent of your losses becomes clear.
- Your medical treatment is ongoing: If you are still receiving treatment, it may be impossible to determine the total cost of your medical care. Accepting a settlement before your treatment is complete could leave you responsible for future medical bills.
- The settlement does not cover your expenses: A fair settlement should account for medical bills, lost wages, property damage, and other accident-related losses. If the proposed amount falls short of these costs, it may be too low.
- Pain and suffering are ignored: Non-economic damages such as physical pain, emotional distress, and reduced quality of life can represent a significant portion of a personal injury claim. An offer that only covers your measurable financial losses may not be fair.
- The adjuster pressures you to accept: High-pressure tactics may indicate that the insurance company wants to settle your claim before you fully understand its value or consult an attorney.
How Insurance Settlement Negotiations Work
Most accident claims are resolved through negotiation rather than litigation. After an accident, the insurance company will review your claim and make an initial offer. You or your attorney may then respond with a counteroffer supported by evidence such as medical records, expert opinions, wage documentation, and accident reports.
If the insurer rejects your counteroffer, negotiations may continue until both sides reach an agreement. During this process, additional evidence may be exchanged, and the insurer may increase its offer. If they don’t offer you a fair settlement, you may need to file a lawsuit to pursue one.
Common Types of Damages Available After an Accident
Depending on the circumstances of your accident, you may be entitled to recover compensation for various losses, such as:
- Medical expenses: You can recover the cost of emergency care, hospitalization, surgery, medication, physical therapy, and future medical treatment related to the accident.
- Lost wages: You may be able to recover income you lost while recovering from the accident.
- Loss of earning capacity: If your injuries affect your ability to earn income in the future, additional compensation may be awarded.
- Property damage: You recoup the cost of repairing or replacing any personal property damaged in the accident.
- Pain and suffering: Compensation may be available for physical pain and discomfort caused by the accident.
- Emotional distress: In certain cases, you may be compensated for anxiety, depression, and psychological trauma.
- Loss of enjoyment of life: You can receive additional compensation if the accident compromises your ability to participate in activities you previously enjoyed.
- Punitive damages: In situations involving particularly reckless or intentional conduct from the other party, punitive damages may be awarded.
A low settlement offer may fail to account for many of these damages.
What to Do Before Accepting an Insurance Settlement
Before you accept an accident settlement, it’s crucial to:
- Review your medical records: Make sure your injuries and treatment are thoroughly documented.
- Calculate your financial losses: This includes your medical bills, lost income, property damage, and other accident-related expenses.
- Consider future costs: Determine whether you will need ongoing treatment or rehabilitation.
- Avoid signing documents right away: Take time to review any release forms or settlement agreements.
- Request an explanation: Ask the insurance company how it calculated the settlement amount.
- Consult an attorney: An accident attorney can evaluate the offer and determine whether it reflects the true value of your claim.
Have you been involved
in an accident?
(310) 526-8383
Talk to a Personal Injury Lawyer
Accepting a low settlement offer can have lasting financial consequences. If you are currently fielding offers or preparing to file a claim, a personal injury attorney from Omega Law Group can review the offers you receive, determine whether they are fair, and fight for a fair payout on your behalf.
Schedule a free consultation to get help with your case.
