Should I Accept the Insurance Company’s First Settlement Offer?

While every offer is different, it’s a good idea to fully review the value of your personal injury claim before accepting an insurance company’s first settlement offer. An early offer may arrive before you know how much medical treatment you will need, how long you will miss work, or whether your injuries will cause permanent limitations.

The reality is that some insurance companies will aggressively try to settle the case for pennies on the dollar immediately after an injury occurs. They hope you accept less than the claim is worth before you have a chance to speak with an attorney. At Slager Madry, we’ll go over every offer with you to make sure you give it the weight it deserves.

Why Would an Insurance Company Make a Settlement Offer Quickly?

An insurance company may make an early settlement offer because resolving the claim quickly can limit its financial exposure. An early offer does not necessarily mean the insurer has calculated all of your damages or determined the maximum amount it would pay.

Some claims involve obvious liability. For example, another driver may have rear-ended your stopped vehicle, and the evidence may not leave room to dispute who caused the collision. Rather than spending additional time investigating liability, the insurer may focus on resolving the damages claim.

The problem is that you may receive an offer before you understand the full extent of your medical condition. You may still be attending appointments and undergoing physical therapy, which makes it unreasonable to decide what your case is worth. If you’re still on the road to recovery, you can’t know where your condition will end up. It’s safer to heal as much as you can before you settle.

What Damages Should an Insurance Settlement Cover?

A personal injury settlement should account for the damages caused by the accident, including both financial costs and the personal effects of the injury. While every case is different, some of the damages you may be entitled to recover include the following:

• Past and future medical bills
• Lost wages
• Diminished future earnings
• Pain and suffering
• Scarring and disfigurement
• Property damage
• Emotional distress

While our attorneys can’t guarantee what your case is worth, we can help you identify the types of damages that may be available.

What Happens If You Accept a Settlement and Your Injuries Get Worse?

You generally cannot reopen a settled personal injury claim simply because your injuries later become worse. This is why it’s so important to be certain of your claim’s value before you reach a settlement agreement.

Suppose you accept a settlement while undergoing treatment for a back injury. Several months later, your doctor determines that you need surgery. If you already signed a valid release covering the claim, you generally cannot demand additional compensation from the insurer to cover the unexpected surgery.

Waiting until your medical condition becomes reasonably clear can provide a more reliable basis for evaluating your damages. That’s why our attorneys often wait until you’ve reached your maximum level of possible recovery before we make a final settlement offer to the other side.

Can You Negotiate an Insurance Company’s First Settlement Offer?

Nothing prevents you from negotiating with the insurance company after they make their first settlement offer. In fact, these negotiations are common in personal injury cases. It’s rare for an insurer to make a best-and-final offer out of the gate.

You have options when responding to the insurance company. It may be worthwhile to come back with your own number and explain why you believe the first offer was inadequate. Your attorney can evaluate those arguments and determine whether continued negotiations or a lawsuit provides the appropriate way to pursue the claim.

Frequently Asked Questions

Is the first settlement offer always too low?

Instead of assuming the first offer is unreasonable, evaluate it based on your damages and the evidence you’ve collected to support your claim.  

Can an insurance company withdraw a settlement offer?

An insurer may place conditions or deadlines on an offer and may withdraw an offer in some circumstances before acceptance.

Do you have to give the insurance company a recorded statement?

You don’t have to give a recorded statement to the other party’s insurance company, period. While you must cooperate with your own insurer, you are entitled to speak with your attorney first.

Can you negotiate a settlement without an attorney?

You can communicate with an insurer yourself, but serious injury claims can involve difficult questions about future damages, liability, insurance coverage, and legal deadlines. An attorney can evaluate these issues before you sign a release.

How Our Firm Can Evaluate a Settlement Offer

Our attorneys understand what a realistic settlement offer looks like, and we can use our experience to make sure you aren’t taken advantage of. It’s natural to want to settle a claim and move on with your life, but you only get one shot at the recovery you deserve. We can help by ensuring the offers you receive are reasonable, and we’ll advise you when we think accepting one is against your best interests.

Our team can gather medical records, document lost income, investigate liability, identify available insurance coverage, and evaluate future medical and financial consequences. If the offer doesn’t adequately reflect the evidence, the attorney can negotiate with the insurer and explain whether filing a lawsuit is appropriate.

Keep in mind that the decision to settle remains yours. We can advise you on what we think is fair and negotiate on your behalf, but you’ll ultimately decide whether settlement is right for you.

Talk to Slager Madry Today

If an insurance company has offered to settle your personal injury claim, you can benefit from discussing it with an attorney before deciding. Contact Slager Madry as soon as possible to discuss your options in a free consultation.