A common question that may come up during a personal injury case is: Should I accept a settlement offered by the insurance company? Since there are many layers to the answer, this guide aims to address common questions many clients may have about settlement offers.
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Understanding Insurance Settlements
Insurance settlements are a common practice that insurance companies use to resolve personal injury claims. But what exactly is an insurance settlement? An insurance settlement is a joint agreement between an injured party and the insurance company (on behalf of of its at-fault insured), where the insurer pays the claimant a pre-determined sum of money as compensation for damages incurred due to an accident or injury. This payment is made in exchange for the claimant’s agreement – by signed Release of All Claims – not to pursue further legal action.
The settlement process typically begins with the injured party filing a claim with the at-fault party’s insurance company. The submitted claim will then be assigned to an insurance adjuster. The adjuster’s role is to investigate the claim, assess liability for injuries/damages proximatley caused by the incident damages, and determine the compensation the insurance company should offer. This offer is typically presented in the form of a settlement, which the claimant can choose to accept or reject.
Why do Insurance Companies Offer to Settle Early?
Receiving a settlement offer right away may seem like a good thing, however, in many personal injury cases, they are not beneficial. Insurance companies are for-profit businesses, and early settlement offers are a strategy they always use to minimize their company’s financial liability and capitalize on an injured person’s vulnerability, often long before they have clarity about the full scope of their injuries or have even resolved treatment.
Factors to Consider Before Accepting an Insurance Settlement
Never accept any settlement offer until you fully recover from your injuries or, at the very least, have a firm medical prognosis from your doctor on status and expected duration of your injury to maximum medical improvement. Before accepting any insurance settlement, assessing whether the offer is fair is essential. Here are a few key points to consider before accepting a settlement:
Your recovery:
Before accepting a settlement, ensure you have reached maximum medical improvement and understand the full scope of your injuries before settling.
Lost wages and other damages:
Calculate all your financial losses, including lost income, transportation, parking, property damage, and potential ongoing medical expenses.
Future costs:
Another consideration is potential future costs and expenses. This would include ongoing medical treatments or loss of future earnings that may not be immediately apparent. For instance, if your injury requires long-term medical care or if you’re unable to return to work, these costs should be factored into the settlement.
Quality of life:
It’s also important to consider the impact of the injury on your quality of life. If the injury has resulted in permanent disability or disfigurement or caused significant emotional distress, these factors should also be reflected in the settlement amount.
Legal advice:
Consult with a personal injury attorney like Jeff GOULD Law, the Attorney In YOUR Corner, to evaluate the settlement offer and understand its implications before accepting an offer.
Remember, insurance companies NEVER open with their best offer. Take your time and never feel pressured to make a decision quickly. Your patience can lead to a more favorable outcome.
What Happens if I Reject an Insurer’s Settlement?
Don’t be fooled; rejecting an offer does not negate your right to claim compensation. To reject an offer, you must submit a letter outlining your refusal to an insurer’s settlement. This letter formally notifies the insurer that you do not accept their initial offer, and opens the door for settlement negotiations.
Unsurprisingly, drafting this letter can be stressful if you are unfamiliar with the process, and the insurance company can use this to its advantage. As such, having an Attorney In YOUR Corner to take care of negotiations and case administration for you and even the playing field can be beneficial. Initial Consultations are FREE, and if you decide you would like to hire us on contingency fee basis, remember – ‐ NO Recovery / NO Fee.
Can I Change My Mind After Accepting an Early Offer to Settle My Claim?
Your case is considered closed once you have accepted, in writing, an offer from the liable party’s insurance company. This means you cannot pursue any additional compensation, even if you discover later that you need additional medical care.
If you ever feel stuck about responding or, worse, feel pressured into making a quick decision, you can always firmly but politely inform the insurance adjuster that you do not feel that you have all of the information necessary to make a decision at this time and let them know that you or your lawyer will be in touch when you know the full extent of your injuries. If you are unsure about your legal position, reaching out for a free case review to understand your rights and responsibilities with Jeff GOULD Law, the Attorney In YOUR Corner, is always beneficial.
Getting the Compensation You Deserve
Our Personal Injury cases consist of: injuries caused by car and motorcycle accidents; bicycle and pedestrian accidents; wrongful death; and specifically, dog bites ‐ NO Recovery / NO Fee. If you or someone you know has received a low settlement offer from an insurance company or feel an insurance adjuster is not treating you fairly after an accident in the Oro Valley, Marana, and Tucson area, Jeff GOULD Law, the Attorney In YOUR Corner can help.
We have been helping injured people with their accident claims for decades, so we know what a fair settlement looks like. If you have questions or want to learn more about your legal options…
Don’t DELAY: Call Jeff GOULD Law, the Attorney In YOUR Corner – TODAY!
DISCLAIMER: The information on this blog/site is not intended to be legal advice. It is for general informational use only. You should consult an attorney for advice regarding your situation. Further, this information does not create an attorney-client relationship.