People involved in car crashes or similar incidents rely on the insurance carried by the party at fault to pay for their losses. Receiving a prompt response and a settlement offer can leave people feeling relieved.
After all, serious injuries can generate medical expenses and leave people unable to work until they heal. An insurance settlement could help them pay their hospital bills and other expenses until they get back to work.
Unfortunately, insurance companies are well aware of the financial strain people experience after a serious injury. They may make offensively low settlement offers. People often feel compelled to accept a first settlement offer, but doing so may not necessarily be in their best interest.
Why are initial settlement offers so low?
Insurance companies capitalize on people’s need for immediate support after a car crash or similar incident. They often make an offer that is below the policy limits and also well below the potential long-term costs of an injury.
People still recovering from the initial trauma that left them injured may not yet have a grasp on the big-picture implications of their injuries. They may be at risk of accepting a settlement that is far below the total amount of their future medical bills and lost wages.
Accepting a settlement typically absolves the insurance company of any future liability, even if a person incurs tens of thousands of dollars in additional expenses. Especially in scenarios where injuries are catastrophic and could have permanent consequences, the first settlement offer may be far too low given the total impact the injuries may generate.
Legal guidance may be necessary
Technically, people hurt by others can settle their own insurance claims. However, they have the right to work with an attorney. Doing so is typically beneficial, as a lawyer can assist with a review of the insurance policy.
They can manage discussions with the insurance provider. They can also help the injured person calculate their long-term losses, not just their current expenses. Countering an initial settlement offer may lead to negotiations, which an attorney can manage. They can also provide insight into when filing a lawsuit might be necessary because the insurance company’s approach to the claim is not reasonable.
Instead of simply agreeing to a settlement offered by someone else’s insurance company, those hurt and in need of compensation may need help reviewing a settlement offer and pushing for a more appropriate amount of compensation. Retaining the support of an attorney can take much of the stress out of insurance negotiations and personal injury litigation accordingly.
