Following a vehicle accident, the financial and emotional burden can become overwhelming. insurance companies are usually quick to make an offer to settle the case quickly and have you take a lump sum payment. Although it can be tempting, taking the first offer might set you back way more than you think. Any offer should not be taken until you realize the possible long-term effects and how it will affect your recovery. Careful considerations should be made before accepting a car accident settlement offer.
The Pitfalls of Accepting the First Offer
Insurance firms exist to generate profits, not to compensate victims the full amount that they are owed. The initial settlement you are offered will always be less than you deserve, and you’ll be left with a lesser settlement than you would obtain if you negotiate equitably. If you take this first offer, you might lose your right to seek further compensation for damages that were not taken into account when the offer was made.
Why Insurance Companies Make Low Initial Offers
Insurance adjusters are taught to keep the company’s payment to a minimum, and that is usually accomplished by making a quick settlement offer. The initial offer might be pitched as a speedy means for you to “move on” from the accident, but it might be a company money-saving technique. Most of the victims have no idea of the extent of their injuries or future costs, and this leads them to accept an offer that does not consider long-term expenses.
What You Could Lose by Accepting the First Offer
1. Future Medical Expenses
Car accidents can lead to injuries that need continuous medical care, e.g., physical therapy or specialist appointments. The initial settlement offer you get may only address short-term medical costs and leave you without money for subsequent treatments. Taking the initial settlement without looking at future healthcare expenses might jeopardize your financial security.
2. Lost Wages and Income
If you cannot go back to work because of your injuries, you can lose a lot of money in the long term. The initial settlement offer will not likely include future lost wages, especially if your injuries keep you from going back to work for a long time. A lawyer can assist in determining the total effect on your income so that this loss is factored into the settlement.
3. Pain and Suffering
Physical suffering, emotional distress, and mental anguish as a result of the accident frequently are not included in early offers of settlement. A reasonable offer of settlement would consider the full extent of your pain and suffering, both physically and emotionally, resulting from the accident.
4. Punitive Damages
In some situations, punitive damages could be given in the event of reckless or willful conduct by the other party. Taking the initial offer could disallow future claims for punitive damages, whose purpose is to punish the culprit and serve as a deterrent.
Final Thoughts
It’s important to speak with an attorney prior to accepting any settlement proposal. An experienced attorney will determine the actual worth of your case, including all future expenses pertaining to your injury. They will also negotiate on your behalf with the insurance company so that you won’t get taken advantage of. Keep in mind that once you settle a case, you cannot seek further compensation for the same accident.