Why You Should Never Accept an Insurance Company’s First Settlement Offer

Why You Should Never Accept an Insurance Company’s First Settlement Offer

Being injured can turn your life upside down at a moment’s notice. The costs of being the victim of an accident are high, and medical expenses, lost wages and vehicle repairs can easily cause financial strain for a family. If you were injured, recovering compensation as quickly as possible is often an immediate goal. However, it may be in your best interest to decline the insurance company’s first settlement offer and discuss your case with a skilled Idaho personal injury lawyer. Here’s why.

The Insurance Company’s First Offer is Almost Always Too Low

The first offer that an insurance company will make to the victim of an accident or injury is almost always too low to cover even basic medical expenses and lost wages. Even settlements offers that seem reasonable or even “too good to be true” are generally a lot lower than they estimate the real costs will be.

The reason for this is that insurance companies – like everyone else – are in business to make money. Paying out claims can be costly and could affect their bottom line. It’s the job of many insurance adjusters to calculate a settlement offer that still allows them to make a profit, or at least allows them to break even. The truth is, you can almost always expect that you can obtain higher compensation through a personal injury claim or a second or third settlement offer.

You Need a Better Assessment of Your Damages

Not all damages are calculable in the first few weeks after an accident. There may be long term damage or permanent disability that would significantly affect the compensation that you are awarded. Often, doctors will try non-invasive medical techniques to relieve pain, and if they aren’t successful, only then will the recommend riskier treatments like surgery.

If you accept an insurance company’s first settlement offer, there’s a good chance that it won’t cover potential costly treatments later on down the road.

You Need a Minimum Figure In Your Mind Before You Accept Any Settlement

The insurance company will undoubtedly be pressuring you to accept a settlement, simply because they want to avoid litigation when at all possible. Before you accept any offer, you need to have a general figure in mind. Your Boise personal injury attorney can help you calculate this figure by combining medical expenses, lost wages and estimating future medical costs. Never accept a settlement that doesn’t at least meet this minimum amount.

In some cases, it is more beneficial to decline all settlement offers and go into litigation. Consult with your Idaho injury lawyer to determine what the best strategy in your case would be, and what actions would bring in the highest compensation award possible.

At the Rossman Law Group, we have the experience and skills necessary to help you stand firm with the insurance company in order to obtain the maximum restitution possible. If you or a loved one have been involved in an accident or have been injured, contact us today for a consultation at (208) 331-2030.