Why You Should Not Accept the First Settlement Offer from the Insurance Company
Accepting the first offer from an insurance company after an accident may seem tempting to an injury victim who needs relief from medical bills and other expenses, especially if he or she is out of work due to his or her injuries.
However, there are several reasons injury victims should not accept the initial offer and speak to a personal injury lawyer in New Jersey before negotiating with the insurance company.
First Offers Rarely Account for Long-Term Needs
Some injuries may be more complicated and severe than a victim initially believes, potentially leading to costly surgeries and treatments in the future. When the insurance company makes an initial offer to settle a claim, it rarely takes these potential expenses into account. Insurance companies know injury victims rarely take these expenses into account either.
Depending on the type of claim, an insurance company might rush to make the first offer before an injury victim has had the opportunity to be fully evaluated by a medical professional. Accepting an offer before seeing a medical professional or before treatment has concluded may leave you with bills for:
- Physical therapy
- Rehabilitative therapy
- Psychological treatments
- And more
Without knowing the full extent of your injuries and the impact they may have on your life, it can be difficult to properly assess what your claim is worth.
Insurance companies are trying to protect their bottom line, so it is in their best interests to make lowball offers. Even if you do not accept the offer, your rejection of the offer can help delay the resolution of your claim. That may increase the likelihood of you accepting a future offer that is still for less than the full value of your claim.
Before agreeing to a settlement with the insurance company, it would be in your best interest to speak to an attorney.
Rejecting the First Offer
Rejecting the first settlement offer from an insurance company may seem like a bad idea, especially if you have outstanding medical bills not covered by your own Personal Injury Protection insurance. However, it is important to keep in mind that insurance companies rarely offer a settlement that reflects the true value of a claim in the first round of negotiations.
You are within your rights to reject a settlement offer, and the insurance company is likely to make another offer.
First Offers are a Starting Point for Negotiations
Once you reject the first offer from the insurance company, the negotiation process begins. The insurance adjuster who is handling your claim usually has the authority to offer more, depending on the type of claim, even if he or she tells you he or she does not. This is part of the insurance company’s strategy to convince injury victims to take a lower offer and help save the company money.
Speak to an Attorney Before Agreeing to a Settlement. Call Today
If you were injured in an accident and the insurance company has already attempted to make a settlement offer, call the Lynch Law Firm, PC before accepting it. Your claim is likely worth more than the insurance company wants you to believe, and we may be able to help you maximize the value of your claim.
We know the tactics insurance companies use to attempt to underpay claims and are prepared to push back when the settlement offer does not amount to the full value of the claim.
We offer a free case review and charge you nothing while we work on your claim.
No fees. No risks. Call today: (800) 518-0508