Should I Accept a Settlement Offer From the Insurance Company? 

After suffering a personal injury in Phoenix, your main focus should be on recovering from your injuries. However, once your physical condition stabilizes, you’ll likely start thinking about settling your personal injury claims. In many cases, the insurance company for the at-fault party will offer a settlement very quickly. This might seem like an easy way to resolve things. But, accepting an early offer without speaking to an attorney might not be in your best interest. 

Most people who accept the first settlement offer from an insurance company end up receiving far less than they deserve. You oftentimes could receive more through negotiation. Taking the time to understand your legal options before agreeing to settle can increase your chances of receiving full compensation. 

Why Do Insurance Companies Offer Quick Settlements? 

Why Do Insurance Companies Offer Quick Settlements? 

It is not uncommon to be surprised by how fast insurance companies offer to settle. There’s usually a reason behind the quick offer. Usually, the reason is not to support your best interests. 

Some accident-related injuries take time to fully manifest. You may not immediately realize how severe your injuries are. This is especially true when you require long-term treatment. 

If you accept a settlement too soon, you may end up being responsible for unexpected medical treatments and surgeries. This is one reason to avoid settlement without talking to an attorney. 

Insurance companies prefer settling cases before you consult with a personal injury lawyer. By settling quickly, they can pay out less than what you might otherwise receive. A lawyer can help you understand that you may be entitled to compensation for more than just medical bills and lost wages. There are other damages that may be available, like pain and suffering, mental anguish, and other out-of-pocket costs

Insurance companies try their best to reduce their payouts. This is why they are motivated to settle cases before you talk with a lawyer. Don’t fall victim to this tactic. Make sure you are advised by an experienced personal injury lawyer before you accept a settlement. 

What Should I Do if the Insurance Company Offers a Settlement? 

It may be tempting to accept a settlement right away. If you are dealing with financial strain or stress after an accident, a settlement offer is hard to resist. However, this is exactly what insurance companies count on. The initial offer is often much lower than the true value of your claim. 

If you receive a settlement offer: 

  • Do not cash any checks: Accepting a check or signing a release may prevent you from seeking further compensation. Even if additional injuries or damages become apparent later, you could lose your right to pursue compensation. 
  • Contact a personal injury attorney: Speaking with an attorney is the best way to ensure that you are being treated fairly. If you accept a settlement on your own, you could be accepting an insufficient amount of compensation. 

Remember that insurance companies are looking out for their bottom line. These large companies may try to take advantage of the financial pressures faced by accident victims. This is why it is important to have a skilled personal injury lawyer on your side. 

When Should I Accept a Settlement Offer? 

You should never accept a settlement offer before completing your medical treatment. It’s important to know the full extent of your injuries and whether they will have long-term consequences. Your doctor may even issue a permanent impairment rating. This rating could increase the value of your case. 

If your injuries are minor, you may think about negotiating directly with the insurance company. However, your interests will be better served if you have a trained lawyer negotiating on your behalf. Your attorney can evaluate your case and provide a detailed breakdown of your damages. 

An experienced personal injury lawyer can ensure that all damages are accounted for, including: 

You are not obligated to accept the first offer. It’s common to make a counteroffer. Your personal injury lawyer can help you support your claim with evidence of your damages.

When Should I Hire a Lawyer to Handle My Insurance Claim? 

It is always a good idea to consult with a lawyer before accepting a settlement. Keep in mind that the insurance adjuster works for the insurance company. They don’t work for you. Their goal is to settle the claim for as little as possible. 

You should seek legal advice if: 

  • You suffered serious injuries 
  • Your medical bills are substantial 
  • The insurance company denies liability or claims you are partially at fault 
  • You missed a significant amount of work due to your injuries 
  • You sustained a permanent disability or impairment 
  • The adjuster is pressing you to accept a low settlement amount 

A personal injury attorney can help you determine the true value of your case. This valuation may include future medical needs, lost earning capacity, and compensation for your mental suffering. Your lawyer can also work with medical expert witnesses to provide documentation of your injuries. This evidence can help strengthen your case and increase your settlement amount. 

Watch Out for Delay Tactics

On the flip side, some insurance companies may try to delay your claim. They hope that you’ll accept a lower settlement or that the statute of limitations will expire. In Arizona, the statute of limitations for filing a personal injury lawsuit is two years from the date of the injury. If your claim drags on or your treatment takes a long time, consult an attorney to protect your rights. 

Schedule a Free Consultation with Our Phoenix Personal Injury Lawyers

Before you accept any settlement offer from an insurance company, it is important to get legal advice. At Runion Personal Injury Lawyers, we offer free consultations to help you understand your rights. Our goal is to help you receive the compensation you deserve. 

Contact our office today at (602) 595-5559 to schedule your initial case review. Let us help protect your future after a personal injury.