When Not to Accept the Insurance Company’s First Settlement Offer
If you have ever been in an accident, you understand the stress of trying to settle an insurance claim. After such a long wait, while it may seem appealing to accept the insurance company’s first settlement offer, it is not advised. That’s because the insurance company’s first offer generally only accounts for 40% of your total claim. To ensure that you are receiving what you rightfully are owed, our personal injury attorneys can explain why you should not accept the insurance’s first settlement offer.
The First Offer Rarely Factors in Future Medical Costs
Insurance’s first settlement offer will not take into account future medical expenses, including the need for revision surgeries, rehab, and modifications to your home as your condition progresses. Most personal injury attorneys (including our legal team) recommend that clients accept a settlement only after reaching maximum medical improvement (MMI). MMI is the point at which your condition will no longer improve, despite ongoing treatment.
When the first settlement offer is made, most injury victims have rarely reached MMI. Prematurely accepting a settlement offer will only provide you with a fraction of what is due to you, placing you at a severe financial disadvantage as future costs arise.
It Prevents You From Accepting Future Compensation
By the time of the first settlement offer, there is no telling how long your recovery period will be. A lengthy recovery will impact your ability to work, resulting in thousands of dollars in lost wages. If complications arise, you may be saddled with further medical bills.
If you accept the insurance’s initial offer, you will have to sign a release form, preventing you from collecting compensation or taking legal action in the future. This release of liability may prevent you from receiving the true worth of your personal injury case. This can be especially disheartening if new evidence arises that increases the opposing party’s liability.
Rejecting the Initial Offer Gives You Negotiation Leverage
Rejecting insurance’s initial offer can lay the groundwork for negotiations. Most claimants counteroffer, proposing an amount that opens the door for talks. Our Nashville personal injury team will draft a demand letter detailing why the offer is insufficient. As part of the demand letter, our legal team will calculate your total damages. Damages include economic losses, such as lost wages and medical bills, as well as non-economic losses, such as pain and suffering and post-traumatic stress disorder (PTSD).
If you and the insurance company reach an impasse or you are continuously offered lowball offers, then you may consider taking legal action. However, the state of Tennessee gives accident victims only one year to file a lawsuit. The insurance company may stall settlement negotiations to run out the clock, which is why it is beneficial to work with a personal injury attorney throughout the process.
Speak with Our Nashville Personal Injury Lawyers Today
If you or a loved one has experienced a personal injury, Raybin & Weissman is available to answer any questions you may have. For almost 50 years, our Nashville personal injury attorneys have worked tirelessly to protect the rights of individuals and their family members who have been harmed by negligence. If you are interested in learning more about our services, contact us online or call (615) 256-6666 today.