How to Ensure Your Crash Insurance Settlement Offer Is Reasonable Before Accepting
Millions of people across Texas travel on highways and roads every day. Most of them reach their destinations without incident. Still, unfortunately, some end up in crashes or collisions that can lead to severe injuries or, even worse, fatalities, turning what was meant to be a routine drive into a life-altering event.
After an accident, filing a claim with your insurance is crucial. If you’ve been consistently paying your insurance premiums on time, you might expect your insurance company to take care of you after an accident caused by another driver.
However, that assumption could cost you thousands of dollars if you accept a settlement offer without careful consideration. Before you sign on the dotted line, learn the steps you should take to ensure you receive a fair settlement.
Understand the Insurance Company’s Priorities
Insurance companies, particularly those operating for profit, are vested in minimizing their expenses. This doesn’t mean they’re unethical, but it does mean they’re focused on limiting their financial exposure. As soon as you file a claim for a severe crash, the insurance company may start seeing you as a liability, not a valued customer.
This shift in perspective means they go from providing service to managing risk, which can result in a lower initial settlement offer than you deserve. Insurance adjusters will be looking for ways to minimize the payout on your claim, whether that involves questioning the severity of your injuries, downplaying your medical expenses, or offering a settlement that only covers a fraction of your actual losses.
Why Initial Settlement Offers Are Often Too Low
One common tactic that insurance companies use to control costs is to present a low initial settlement offer. This lowball offer is often framed as a generous gesture—it’s money in your pocket when you need it most. But that initial offer is rarely in your best interest.
Insurance companies know that after a traumatic event like a car accident, you may not be in the best state of mind to make critical financial decisions. They also know that many people are unaware of the total value of their claim or the long-term economic impact of their injuries. By offering a settlement quickly, they aim to resolve the claim before you’ve had a chance to understand your rights or consult with a legal professional.
Steps to Take Before Accepting a Settlement Offer
Before you agree to any settlement, ensuring that the offer is fair and reasonable is crucial. The consequences of accepting an inadequate settlement can be severe, leaving you without the resources you need to recover fully. Here are some essential steps you should take to protect yourself.
Evaluate All Current and Future Expenses
Start by thoroughly calculating all your current medical expenses, including hospital stays, surgeries, medications, and physical therapy. Don’t forget to factor in any lost wages if your injuries have prevented you from working. Be sure to consider future costs, such as ongoing medical treatment, rehabilitation, or any long-term care you might need.
Vehicle Repair or Replacement Costs
If your vehicle was damaged in the crash, include the repair or replacement costs in your evaluation. Make sure the settlement covers not just the immediate repair costs but also any associated expenses, such as rental car fees or the diminished value of your vehicle post-repair.
Consult with Professionals
Consider speaking with a personal injury attorney who can objectively assess your case. An experienced attorney can help you understand whether the settlement offer reflects the actual value of your claim and advise you on the best course of action. They can also negotiate on your behalf, ensuring your rights are protected throughout the claims process.
Gather Documentation
Collect all relevant documentation, such as medical bills, repair estimates, and proof of lost income. Presenting this evidence to the insurance company can strengthen your position and support a counteroffer. Detailed records of your expenses and losses will make it much harder for the insurance company to dispute the value of your claim.
Counter with a Reasonable Offer
Don’t hesitate to push back if the initial offer is too low. Submit a counteroffer that reflects the full extent of your losses, backed by the documentation you’ve gathered. Present your counteroffer with supporting evidence and be prepared to explain why the initial offer was inadequate. Be ready to negotiate and stand firm on what you deserve. Remember, the first offer is rarely the best.
The Importance of Not Settling Too Quickly
Accepting a settlement too quickly can leave you with insufficient funds to cover your long-term needs. Insurance companies are counting on your willingness to settle fast, often before the full scope of your injuries and expenses are clear. By evaluating the offer and considering the above steps carefully, you can ensure that the settlement you accept meets your needs and secures your financial future.
Remember, once you accept a settlement offer, you generally can’t return for more money later, even if your expenses are higher than expected. Make sure the offer is fair before you sign anything. Taking extra time to assess and negotiate can significantly affect your financial recovery.
Need Help with Your Insurance Settlement? The Law Giant Is Here to Protect Your Rights.
Dealing with an insurance settlement after a car crash can be overwhelming, especially when recovering from injuries. At The Law Giant, Personal Injury & Accident Lawyers, we understand the tactics insurance companies use to minimize payouts, and we’re committed to ensuring you get the total compensation you deserve.
If you’re facing a lowball offer or need guidance on your claim, don’t navigate this alone. Contact us at (866) 435-5219 or submit a request online. With over $750 Million recovered for our clients and our No Win / No Fee guarantee, we’ll stand by your side every step of the way to protect your rights.
