After a car accident or other serious injury, receiving a settlement offer from the insurance company may feel like good news. Medical bills may be accumulating, you may have missed time from work, and additional expenses can make a quick payment especially appealing.
However, the insurance company’s first settlement offer is not necessarily the amount your claim is actually worth. Before accepting an offer, it is important to understand what you may be giving up and whether the settlement adequately accounts for the full impact of your injuries.
Why Do Insurance Companies Make Settlement Offers?
Insurance companies resolve claims by paying settlements every day. While an adjuster may be professional and helpful throughout the process, the insurance company also has a financial interest in resolving claims efficiently and limiting what it pays.
An early settlement can benefit the insurer by closing the claim before all of the injured person’s damages are fully known.
This is particularly important when an offer arrives shortly after an accident. You may not yet know how long your recovery will take, whether you will require additional treatment, or whether your injuries will affect your ability to work in the future.
The First Offer May Not Account for All of Your Losses
Determining the value of a personal injury claim involves more than adding up the medical bills you have already received.
Depending on the circumstances, compensation may need to account for:
- Medical bills and related expenses
- Future medical treatment
- Lost wages
- Reduced future earning ability
- Pain and suffering
- Disability or physical limitations
- Other losses resulting from the injury
If you accept a settlement before understanding the extent of these damages, the payment may not be enough to cover losses that become apparent later.
What Happens When You Accept a Settlement?
Personal injury settlements typically require the injured person to sign a release. By signing it, you generally agree to give up your right to pursue additional compensation from the parties covered by the release for the claim.
That can create a serious problem if your medical condition later turns out to be worse than expected.
For example, suppose you accept an offer while undergoing treatment for back pain after a collision. Several months later, your doctors determine that you need additional treatment or surgery. If you have already settled the claim and signed a release, you generally cannot return to the insurance company and request additional compensation simply because your expenses increased.
This is why settlement decisions should be made with an understanding of both your current losses and the potential long-term consequences of your injuries.
Be Careful About Settling Before Your Medical Condition Is Clear
Some injuries improve relatively quickly. Others can take weeks or months before their full effects become apparent.
Before resolving a claim, it may be important to understand your diagnosis, expected recovery, necessary treatment, and whether you are likely to experience ongoing limitations.
Reaching an appropriate point in your medical treatment can provide a clearer picture of what the injury has actually cost you and what expenses you may face in the future.
That does not mean every personal injury claim should be delayed unnecessarily. It does mean that accepting an offer simply because it arrived quickly may not be in your best interests.
Can You Negotiate a Settlement Offer?
An insurance company’s initial offer does not necessarily have to be accepted or rejected without further discussion. Depending on the circumstances, a settlement offer may be negotiated.
Evidence can play an important role in those negotiations. Medical records, medical bills, wage information, photographs, accident reports, witness statements, and other documentation may help establish both the cause of the accident and the extent of your losses.
A personal injury attorney can also evaluate whether the offer reasonably reflects the evidence and damages involved in your claim.
What If the Insurance Adjuster Says the Offer Is Final?
An adjuster may describe an offer as the best or final amount the insurance company is willing to pay. You should not feel pressured to immediately accept an offer simply because of how it is presented.
There may be deadlines that apply to your claim, and every case is different. However, you should have an opportunity to understand the terms of a proposed settlement and the rights you are being asked to release.
If you are unsure whether an offer is fair, consider having an attorney review it before signing anything.
Do You Need a Lawyer Before Accepting an Insurance Settlement?
Not every accident claim results in a lawsuit, but speaking with an attorney can be particularly valuable when you have suffered significant injuries or are being asked to accept a settlement.
An attorney can review the circumstances of the accident, your medical treatment, lost income, available insurance coverage, and other factors that may affect the value of your claim. An attorney can also communicate and negotiate with the insurance company on your behalf.
Most importantly, you can make your decision with a better understanding of what accepting the settlement means for your legal rights.
Talk to a Personal Injury Attorney Before Accepting a Settlement
Once a personal injury claim is settled and a release is signed, it can be difficult or impossible to seek additional compensation for the same claim. That makes it important to understand whether an insurance company’s offer adequately addresses your injuries and losses before you accept it.
If you have been injured in an accident in St. Clair County or elsewhere in Southern Illinois, Kujawski & Associates can review your situation and help you understand your options. Speaking with an experienced personal injury attorney in St. Clair County before accepting an insurance settlement can help you make an informed decision about your claim and your future.
