There are several costs associated with a car accident. Car repairs or replacements, towing expenses and medical bills can quickly add up. If you’re not working due to your injuries, you are wondering how you’re going to pay those bills, keep a roof over your head and put food on the table.
So, when an insurance adjuster quickly offers you a settlement, it can feel like a relief. However, that fast settlement offer may be a warning sign instead.
Insurance companies are not on your side
Insurance companies are a business, and their focus is on making a profit. One way to accomplish that is to pay as little as possible on claims. When they make a quick settlement offer, it may be:
- To close the claim before you fully understand your rights
- Avoid paying future medical costs
- In the hope you haven’t had time to contact a lawyer
A fast settlement offer often benefits the insurance company more than it benefits you.
You may not yet know the full extent of your injuries. Injuries such as whiplash, traumatic brain injury (secondary damage) and soft tissue damage can worsen over time or require ongoing treatment. By accepting a settlement early, you may need more medical care in the future, including surgery or rehabilitation. You will be responsible for those medical bills. But since the settlement didn’t include ongoing medical treatment, there are no funds left to pay those bills. Furthermore, once you accept a settlement and sign the release, you can’t reopen the claim, even if your condition worsens.
Early settlement offers are often far below what a claim is actually worth. In addition to ongoing or future medical treatment, they typically don’t account for:
- Lost wages or reduced earning capacity
- Pain and suffering
- Emotional distress
- Long-term or permanent injuries
The insurance adjustor may pressure you to accept the offer quickly by telling you it’s the best they can do, and the offer may not be available later. These tactics are designed to rush your decision, rather than protect your interests.
Before accepting a settlement offer after a car accident, it’s wise to talk with a legal representative who can do a true evaluation of your claim, along with handling all communication with the insurance company. They will protect you from signing away your rights and help you seek the full settlement you’re entitled to.
